Afcons Infrastructure IPO 2024 Highlights: Afcons Infrastructure’s initial public offering (IPO) saw a strong subscription of 2.63 times on the final day of bidding, October 29. The initial share sale received bids for 22.78 crore shares against the 8.66 crore shares available, according to NSE data.
The non-institutional investor (NII) portion was particularly robust, with a subscription rate of 5.05 times, while the retail individual investors (RIIs) segment saw a subscription of 94%. The qualified institutional buyers (QIBs) portion received a subscription of 3.79 times, and employees subscribed to 1.67 times their reserved portion.
In the grey market, the Afcons Infra IPO’s grey market premium (GMP) has slipped, with shares currently commanding a GMP of Rs 18, indicating a listing premium of 3.89%.
Afcons Infrastructure IPO Listing Date, Time, Price, GMP, Subscription, Review Live Updates
The GMP for Afcons Infrastructure IPO shows the discounted price. The upper price for Afcons Infrastructure IPO is Rs 463.00.The estimated listing price for Afcons Infrastructure IPO at the current GMP is Rs 460 which is 0.65 per cent less than Rs 463. The lowest GMP is Rs -3 on 31st October 2024, while the highest GMP is Rs 225 on 19th October 2024.
In FY24, Afcons Infrastructure demonstrated strong performance with a healthy ROCE of 15.3 per cent, ROE of 12.5 per cent, EBITDA margins of 10.3 per cent, and PAT margins of 3.4 per cent, all attributed to its strong execution capabilities compared to its peers.
The price band for the Afcons Infrastructure IPO is set between Rs 440 and Rs 463 per share, with a minimum lot size of 32 shares. Retail investors need to invest a minimum of Rs 14,816. For small non-institutional investors (sNII), the minimum investment is 14 lots (448 shares), totaling Rs 207,424, while for bulk non-institutional investors (bNII), the minimum is 68 lots (2,176 shares), amounting to Rs 1,007,488.
The book-running lead managers for the issue are ICICI Securities Limited, DAM Capital Advisors Limited, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited. Link Intime India Private Limited serves as the registrar for the issue.
Afcons Infrastructure order book has grown at a CAGR of 7.6 per cent, rising from Rs 26,248.46 crore in FY2021 to Rs 30,405.77 crore in FY2023. As of September 30, 2023, the order book reached Rs 34,888.39 crore.
As of June 30, 2024, Afcon infrastructure was managing 65 active projects in 12 countries, with a total order book of Rs 31,747 crore. The order book to sales ratio for FY24 was 2.4x, indicating revenue visibility for the next 2 to 3 years. Furthermore, by September 30, 2024, the company was the 'L1 bidder' for projects valued at Rs 10,732.36 crore.
Afcons Infrastructure IPO 2024 Live: GMP update
The stock of Afcons Infrastructure were neither fetching a premium nor discount in the unofficial market. The grey market is an unofficial place where shares trade in an illegal way ahead of listing.
Afcons Infrastructure IPO opened on October 25 and ended on October 29. The allotment of shares was finalised on October 30. Afcons Infrastructure IPO will list on BSE and NSE on November 4, as per the tentative schedule.
Afcons Infrastructure IPO 2024 Live: Anand Rathi on Afcons Infra IPO
"Afcons Infra is a leading infrastructure construction company known for executing large and complex projects across India and internationally. They specialize in large, complex, and high-value projects, with a proven record in efficient project management, execution, and timely delivery across various sectors and locations. Most of their projects are completed on or ahead of schedule, and they have successfully undertaken numerous complex, challenging, and unique infrastructure projects, including several 'first of its kind' initiatives in India and globally," said Anand Rathi Research in an IPO note.
Afcons Infrastructure IPO 2024 Live: Geojit Financial Services on Afcons Infra IPO
"At the upper price band of Rs 463, AIL is trading at a P/E ratio of 38x for FY24, which is in line with its peers. With the government’s initiatives aimed at infrastructure development, including increased budgetary allocations and the rapid pace of urbanization, AIL is strategically positioned for substantial growth. Considering its extensive experience in completing high-value and complex projects that offer better margins. Geographical diversification with operations across multiple sectors broadens their revenue base and mitigates risks. With a robust order book and a successful track record of project completion, we assign a “Subscribe” rating for medium- to long-term investment," said Geojit Financial Services in an IPO note.
"On valuation parse at the upper price band of Rs.463/-, the issue is asking for a market cap of Rs 17,029 crore and based on FY25 annualised earnings and fully diluted post IPO paid-up capital, the company is asking for a PE of 46.48x which seems fully priced by looking at the industry average of 40-45x. Investors should also look at IPO offers which come with nearly 77% OFS i.e. Rs 4,180 crore with a total issue of Rs 5,430 crore which is an area of concern for new investors. Given the company’s advanced equipment base proven execution capabilities and strategic market position, it is a key player in infrastructure sectors. Hence, by looking at all attributes we recommend investors to “Subscribe” the Afcons Infrastructure Ltd for long-term perspective only,” said Rajan Shinde, Research Analyst at Mehta Equities.
"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 its operations. At the upper band, the company is valued 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 17,026.18 crore, with a market cap-to-sales ratio of 1.34 based on its FY24 earnings," said Anand Rathi Research in an IPO note.
ICICI Securities, Dam Capital Advisors (Formerly Idfc Securities), Jefferies India, Nomura Financial Advisory And Securities (India), Nuvama Wealth Management, and SBI Capital Markets are the book-running lead managers of the IPO.
Afcons Infrastructure shares were neither fetching a premium nor a discount in the grey market. The company shares were earlier attracting a premium of 4% in the unofficial market.
Afcons Infrastructure Limited reported a 6% increase in revenue and a 9% rise in profit after tax (PAT) for the financial year ending March 31, 2024, compared to the previous year ending March 31, 2023.
In the Afcons Infrastructure IPO allotment process, the registrar distinguishes between valid and invalid applications. Applications that contain technical errors are deemed invalid and rejected, while only valid applications submitted at or above the cut-off price are eligible for allotment.
For further details, please refer to the IPO Allotment Process and Basis of Allotment.
You can access the Afcons Infrastructure IPO basis of allotment document here as soon as it is released by the issue registrar.
ICICI Securities Limited, Dam Capital Advisors Ltd (formerly IDFC Securities Ltd), Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management Limited, and SBI Capital Markets Limited have been appointed as the book running lead managers for the Afcons Infrastructure IPO. Link Intime India Private Ltd will serve as the registrar for the issue.
Afcons Infrastructure's IPO is a book-built issue valued at Rs 5,430.00 crores. This offering consists of a fresh issue of 2.7 crore shares worth Rs 1,250.00 crores and an offer for sale of 9.03 crore shares totaling Rs 4,180.00 crores.
Qualified Institutional Buyers (QIB)
Financial institutions, banks, foreign institutional investors (FIIs), and mutual funds registered with SEBI are classified as QIBs. They typically represent small investors who invest through mutual funds, insurance company ULIPs, and pension schemes.
Non-Institutional Investors (NII)
Non-Institutional Investors include retail individual investors (HNIs), non-resident Indians (NRIs), companies, and trusts that bid for shares worth more than ₹2 lakhs. Unlike QIBs, they are not required to have SEBI registration.
Small NII (sNII): This subcategory is for NII investors bidding between ₹2 lakhs and ₹10 lakhs, with one-third of NII shares reserved for them. This group is also referred to as Small HNI (sHNI).
Big NII (bNII): This subcategory is for NII investors bidding above ₹10 lakhs, with two-thirds of NII shares allocated to them. This group is commonly known as Big HNI (bHNI).
Retail Individual Investors (RII)
Retail individual investors, including NRIs, who apply for up to ₹2 lakhs in an IPO, fall into the RII reserved category.
Employee (EMP)
This category includes eligible employees who have a reserved quota in the IPO.
Others
This category encompasses eligible shareholders or other investors with a reserved quota in the IPO.
Afcons Infrastructure IPO's last GMP is Rs 0 as of October 30, 2024, at 06:27 PM. With a price band set at Rs 463.00, the estimated listing price for the IPO stands at Rs 463 (cap price + today's GMP). The expected percentage gain/loss per share is 0.00%.
Incorporated in 1959, Afcons Infrastructure Limited is a prominent infrastructure engineering and construction firm under the Shapoorji Pallonji Group, boasting a legacy of over six decades.
As of September 30, 2023, Afcons has successfully completed 76 projects across 15 countries, with a total historical executed contract value of Rs 522.20 billion. Currently, the company manages 67 active projects in 13 countries, resulting in an impressive order book of Rs 348.88 billion.
Afcons operates globally in regions such as Asia, Africa, and the Middle East, focusing on five major infrastructure business verticals.
The bidding for the Afcons Infrastructure IPO commenced on October 25, 2024, and concluded on October 29, 2024. Allotment details for the IPO are anticipated to be finalized on Wednesday, October 30, 2024. Following this, the Afcons Infrastructure IPO is scheduled to list on the BSE and NSE, with a tentative listing date set for Monday, November 4, 2024.
By Day 2, October 28, 2024, interest had picked up, especially among retail investors and NIIs, with QIB at 0.08 times, NII at 0.72 times, Retail at 0.36 times, and EMP at 1.01 times, leading to a cumulative total of 0.36 times.
On Day 1 (October 25, 2024), the issue recorded modest interest with a subscription of 0.01 times in the Qualified Institutional Buyers (QIB) category, 0.11 times in the Non-Institutional Investors (NII) category, 0.14 times in the retail segment, and 0.39 times for employee subscriptions, leading to an overall subscription rate of 0.10 times.
Afcons Infrastructure IPO allotment status is currently unavailable. The status will be accessible once the basis of allotment is finalized. Please check back soon for the latest updates on the Afcons Infrastructure Limited IPO allotment.
How to Check Afcons Infrastructure IPO Allotment Status
To verify your allotment status, follow these steps:
Once allotted, the equivalent shares will be credited to your Demat account.
The Afcons Infrastructure IPO was subscribed 2.77 times overall by October 29, 2024, with the retail category subscribed 0.99 times, the Qualified Institutional Buyers (QIB) segment reaching 3.99 times, and the Non-Institutional Investors (NII) category reaching 5.31 times.
The latest grey market premium (GMP) for Afcons Infrastructure IPO is ₹0 as of October 30, 2024, at 1:55 PM.
Afcons Infrastructure IPO’s price band is set at ₹463 per share. Based on the current GMP, the estimated listing price remains ₹463, aligning with the cap price.
The expected percentage gain or loss per share is currently projected at 0.00%, indicating a stable outlook for investors.
The Afcons Infrastructure IPO is a book built issue. It comprises of shares worth Rs 5,430.00 crores. It is a combination of fresh issue and offer for sale. The fresh issue total 2.7 crore shares aggregating to Rs 1,250.00 crores 9.03 crore shares are offer for sale and total to Rs 4,180.00 crores.
Afcons Infrastructure IPO 2024 Live: Afcons Infrastructure’s IPO subscribed 2.63 times
Afcons Infrastructure’s initial public offering (IPO) received strong demand, with a total subscription of 2.63 times on the final day of bidding, October 29. NSE data indicates that the IPO attracted bids for 22.78 crore shares against the 8.66 crore shares on offer.
Among investor categories, the non-institutional investor (NII) segment saw the highest interest, with a subscription rate of 5.05 times. The qualified institutional buyers (QIBs) portion was subscribed 3.79 times, while retail individual investors (RIIs) subscribed at 94%. Employees also showed robust participation, subscribing to 1.67 times their reserved allotment.
Afcons Infrastructure IPO 2024 Live: Listing date not fixed yet
The refunds for Afcons Infra IPO will be initiated from October 31. However, since it is a holiday shortened week with Diwali celebrations across the country, there is no clarity on the listing date. It is scheduled next week.