Afcons Infrastructure Shares Make Subdued Debut with 8% Discount on NSE – Investors Left Unsatisfied!

Afcons Infrastructure shares debuted with an 8% discount on the NSE at ₹426, below the issue price of ₹463. This subdued launch reflects cautious investor sentiment, despite the company's backing from the Shapoorji Pallonji Group and a 2.63x IPO subscription.

By Aayushi Dubey Nov 4, 2024, 11:18 IST

Afcons Infrastructure, a critical player in the infrastructure area under the Shapoorji Pallonji Group, had a lukewarm debut in the stock markets on Monday. Listed on the NSE and BSE, Afcons Infrastructure saw its shares open at Rs 426 per share in the NSE, this being an 8% discount from its issue price that was at Rs 463 per share. On BSE, the stock begins trading at Rs 430.05, which speaks of a 7.12% discount.

This listing date is November 4, 2024. Analysts had anticipated this since Afcons Infrastructure's IPO drew relatively moderate interest from the public, especially the retail investor. GMP was giving out signals of a flat opening of the stock before the listing date, which indeed came to be true as evident in the performance of the day.

Afcons Infrastructure IPO Details

The IPO would open from 25th to 29th October. Subsequently, the allotment is finalized on 30th October. In this respect, priced in between the band of ₹440 and ₹463, the upper portion of ₹5,430 crores comprises an offer of fresh shares amounting to ₹1,250 crres, valued at 2.7 crores, and 9.03 crres share through an offer-for-sale with the amount of ₹4,180 crores.

It witnessed mixed subscription levels across various categories. In total, it was subscribed 2.63 times, the retail segment was subscribed 94 percent whereas QIBs subscribed their allotted quota 3.79 times and NII 5.05 times.

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Lead Managers and Registrar of Afcons Infrastructure IPO

The lead managers for the IPO were ICICI Securities, Dam Capital Advisors Ltd, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets. The registrar was Link Intime India, which managed allotment and subscription details for investors.

Afcons Infrastructure - The muted listing here has hints of the restrained demand during the IPO stage indicating a rather cautious approach investors have toward this company despite its being in the infrastructure space, which is one of the most oldest.