Afcons Infrastructure IPO: What to Expect on November 4 - All You Have To Know 

Afcons Infrastructure IPO: Afcons Infrastructure IPO gets subscribed 2.63 times, will debut in stock exchanges on Nov 4, 2024 The period of subscription was October 25 through October 29. Despite the initial days of bidding, where the subscription stood at just 10% on the first day and 36% by the second, demand surged in the final hours, driven primarily by non-institutional investors (NIIs) who subscribed 5.05 times their portion.

The allotment process of Afcons Infrastructure IPO got closed on 31st October. All the successful bidders were credited their respective shares to the demat accounts, and refund processing was also done on the same day for the investors who failed to apply. As far as structure is concerned, the IPO had been priced in the band of ₹440 and ₹463 per equity share, and a lot size of 32 shares had been decided.

It was noted that Mehta Equities' Senior Vice President of Research, Prashanth Tapse, said the firm witnessed ups and downs while bidding. He further clarified that the retail segment registered a subscription rate of just 94%, which is bound to ensure that all the shares will be allotted to retail investors at the cut-off price. The subscription figures indicated that 50% of the shares were going to QIBs, 15% to non-institutional investors, and 35% to retail investors.

Afcons Infrastructure IPO: Despite looking good on paper, Tapse has also made key points for the mother firm Goswami Infratech, a major debt-ridden organisation having huge restructuring issues on board. He says the numbers will impact investor sentiments for the near term though said this will help manage a major amount of debt generated into its kitty and work through with working capital.

Today, the GMP for Afcons Infrastructure IPO stands at -₹3. This would mean that the shares might list at a discount. Taking into consideration the GMP, the listing price of the shares of Afcons Infrastructure is going to be around ₹460, which is 0.65% less than the upper end of the IPO price band. Historical GMP data shows mixed expectations in the grey market, with a range of between a low of -₹3 and a high of ₹225.

The IPO consists of an issuance of fresh equity shares worth ₹1,250 crore and an offer for sale (OFS) by its promoters for ₹4,180 crore. Prominent stakeholders such as Shapoorji Pallonji and Goswami Infratech own 99% of the company, while only 1% is reserved for public investors. Funds generated will be used for acquiring construction equipment, working capital, and debt repayment.

Given that the firm is led by top-shelf investment houses as the book-running lead managers with the likes of ICICI Securities, Dam Capital Advisors, and Jefferies India, the listing of this IPO would go very well regardless of the prevailing challenges in the market. In general, market sentiment remains cautious while the overall outlook for market listing for Afcons Infrastructure might remain flat. Thus, the above situation offers an excellent opportunity for the long-term investors to have a buying position in that particular company based on potential growth prospects.

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