Afcons Infrastructure IPO: Check IPO allotment date, GMP, review, listing and other details

The Afcons Infrastructure IPO has been subscribed 0.14 times, with the retail category at 0.15 times, QIB at 0.11 times, and NII at 0.12 times by October 25, 2024 (Day 1).

The price band for Waaree Energies‘ IPO is set between ₹1,427 and ₹1,503 per share. Retail investors can apply with a minimum lot size of 9 shares, requiring a minimum investment of ₹13,527. For Small Non-Institutional Investors (sNII), the minimum lot size is 15 lots (135 shares), totaling ₹202,905. Meanwhile, Big Non-Institutional Investors (bNII) must apply for a minimum of 74 lots (666 shares), amounting to ₹1,000,998.

Afcons Infrastructure’s IPO opened for subscription on October 25, 2024, and will close on October 29, 2024. The allotment for the IPO is anticipated to be finalized on Wednesday, October 30, 2024. Shares will be listed on the BSE and NSE, with a tentative listing date set for Monday, November 4, 2024.

“We also believe the company’s robust order book and long-standing relationships with global clients like Arcelor Mittal and Reliance Industries provide strong revenue visibility. AIL’s strategic push into high-growth international markets such as Africa, Southeast Asia, and Eastern Europe, combined with its expertise in leveraging innovative construction methodologies, positions it well for sustained growth. By looking at the financials, the company posted respectable growth in revenue from operations and net profit at 14.7% and 14.9% in FY23 and a modest growth of 5% and 9.5%, respectively, in FY2024,” said Rajan Shinde, Research Analyst at Mehta Equities.

The retail investor segment reached a 14% subscription rate, with non-institutional investors subscribing 11%. Qualified institutional buyers (QIBs) subscribed at only 1%, while the employee portion achieved a 39% subscription.

Afcons Infrastructure, the leading infrastructure, engineering, and construction arm of the Shapoorji Pallonji Group, was established in 1959. AIL’s extensive portfolio spans marine and industrial projects, surface transport, urban infrastructure, hydro and underground developments, as well as oil and gas initiatives.

Afcons Infrastructure’s initial public offering (IPO) reached 10% subscription on its first day, according to BSE data.

A total of 86,06,560 shares were bid for, out of the 8,66,19,950 shares available. The retail investor portion was subscribed at 14%, while non-institutional investors subscribed 11%. Qualified institutional buyers (QIBs) saw 1% subscription, and the employee segment reached 39%.

The initial public offering (IPO) of Afcons Infrastructure was 9% subscribed on its first day, as of 16:24 IST, according to data from the BSE.

A total of 81,52,768 bids were placed against the 8,66,19,950 shares available. The retail investor segment saw a 14% subscription, while non-institutional investors subscribed to 10%. The portion allocated to qualified institutional buyers (QIBs) was subscribed at 1%, and the employee segment reached 36% subscription.

“The company is dedicated to pursuing high-value, complex projects that align with its project selection criteria and risk management framework. The company understands the importance of geographical diversification and aims to maximize opportunities in current markets while expanding its presence internationally, leveraging growth trends in both India and emerging markets worldwide. Afcons acknowledges the inherent risks in the infrastructure sector, both in India and globally, and employs a structured risk management system to identify, assess, and monitor potential risks in their operations,” said Anand Rathi Research in an IPO note.

“We also believe the company’s robust order book and long-standing relationships with global clients like Arcelor Mittal and Reliance Industries provide strong revenue visibility. AIL’s strategic push into high-growth international markets such as Africa, Southeast Asia, and Eastern Europe, combined with its expertise in leveraging innovative construction methodologies, positions it well for sustained growth. By looking at the financials, the company posted respectable growth in revenue from operations and net profit at 14.7% and 14.9% in FY23 and a modest growth of 5% and 9.5%, respectively, in FY2024,” said Rajan Shinde, Research Analyst at Mehta Equities.

“At the upper band company is valuing at 37.9x its FY24 earnings along with being valued at 46.3x if we annualize FY25 earnings. Following the issuance of equity shares, the company’s market capitalization stands at Rs 1,70,26.18 crore, with a market cap-to-sales ratio of 1.34 based on its FY24 earnings. We believe that the issue is fully priced and recommend “Subscribe–Long Term” rating to the IPO,” said Anand Rathi Rsearch in an IPO note.

Afcons Infrastructure garnered Rs 1,621 crore from anchor investors ahead of its initial public offering that opens for public subscription on October 25. The company allocated 35 million equity shares at Rs 463 per share on October 24 to anchor investors. Foreign and Domestic Institutions who participated in the anchor were GIC, HDFC MF, ICICI Pru AMC, BlackRock, Fidelity Investments, Goldman Sachs, HSBC Group, Nomura AM, Nippon MF, Fullerton, Enam Holdings, Birla MF, Mirae MF, Quant MF among others.

Afcons Infrastructure, the flagship infrastructure, engineering, and construction company of the Shapoorji Pallonji Group, was founded in 1959. AIL’s diverse portfolio includes marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas projects.

“We believe Afcons Infrastructure Ltd. (Afcons) Ltd IPO brings investors an opportunity to invest in a flagship construction company of the Shapoorji Pallonji Group supported by a strong track record of executing large and complex projects both in India and internationally. We think with a diverse portfolio spanning marine, transportation, bridges and urban infrastructure, Afcon’s ability to complete projects ahead of schedule highlights its operational excellence,” said Rajan Shinde, Research Analyst at Mehta Equities.