Afcons Infrastructure IPO Day 2: Check Subscription Status, GMP, Recommendations

Last Updated: October 28, 2024, 10:37 IST

Unlisted shares of Afcons Infrastructure Ltd are trading simply Rs 23 greater in the grey market, signalling a 4.97 percent listing gain from the general public problem.

Afcons Infrastructure IPO: The going public (IPO) of Shapoorji Pallonji team company Afcons Infrastructure Ltd, which was opened up for public membership on Friday, has actually until now obtained a soft feedback from financiers. The Rs 5,430-crore IPO, which makes up fresh shares as much as Rs 1,250 crore in addition to a market (OFS) by the marketer as much as Rs 4,180 crore, will certainly end on October 29.

Till 10:24 get on the 2nd day of bidding process on Friday, the IPO obtained a 0.15 times membership gathering 1,28,30,304 shares versus 8,66,19,950 shares available, according to the current NSE information.

Its retail allocation has actually been subscribed by 0.21 times until now, while its non-institutional financier (NII) classification obtained a 0.18 times membership.

The grey market task is presently suggesting an almost 5% listing gain for financiers, which is substantially less than the 13% GMP videotaped recently.

The follows the OFS will certainly be obtained by the marketing investor and Afcons will certainly not get any type of profits from it.

Afcons Infrastructure IPO GMP Today

According to market onlookers, non listed shares of Afcons Infrastructure Ltd are trading simply Rs 23 greater in the grey market than its problem cost. The Rs 23 grey market costs or GMP on Thursday implies the grey market is anticipating a 4.97 percent listing gain from the general public problem.

The existing Rs 23 GMP is substantially less than the Rs 60 costs videotaped on Thursday and Rs 70 costs a day earlier.

The GMP is based upon market beliefs and maintains altering. ‘Grey market premium’ suggests financiers’ preparedness to pay greater than the problem cost.

The cost band of the Rs 5,430-crore IPO has actually been taken care of at Rs 440 to Rs 463 per share for the general public problem.

Afcons Infrastructure IPO Key Dates

The Afcons Infrastructure IPO will certainly continue to be opened up for public membership in between October 25 and October 29. The share quantity of the Afcons Infrastructure IPO will likely be settled on October 30, while its shares will certainly be detailed on both BSE and NSE on November 4.

Afcons Infrastructure IPO: Analysts’ Recommendations

Afcons Infrastructure, in the last 11 years, has actually performed 79 tasks throughout 17 nations with a complete performed agreement worth of Rs 56,305 crore. Over the years, it has actually increased its visibility around the world and specifically throughout Asia, Africa and theMiddle East The locations of procedures cover 5 significant facilities service verticals viz Marine and Industrial, Surface Transport, Urban Infrastructure, Hydro and Underground and Oil and Gas.

SBI Securities in its note stated, “The company currently is executing 65 projects across 12 countries with an aggregate order book of Rs 31,747 cr as of June 2024. The order book to sales ratio stood at 2.52x thus offers decent revenue visibility in the near term.”

“The company, at lower and upper price band of Rs 440 and Rs 463, is valued at a P/E multiple of 36.1x/37.9x of its FY24 consolidated earnings respectively based on post issue capital. The company has demonstrated healthy financial performance as Revenue/EBITDA/PAT grew at 9.7%/20.8%/12.1% CAGR between FY22-FY24 to Rs 13,267.5 cr/ Rs 1,365.0 cr/ Rs 449.7 cr respectively,” SBI Securities stated.

Brokerage company K R Choksey suggested a ‘subscribe’ ranking to the Afcons Infrastructure IPO.

Afcons Infrastructure is purposefully placed for continual development within the facilities industry, capitalising on its comprehensive experience in implementing intricate design, purchase, and building and construction tasks.

With a solid order publication of Rs 31,700 crore and an effective performance history of finishing 79 tasks throughout 17 nations, it included.

“Given its solid financials and proactive growth strategies, the company is positioned for a favourable valuation . The IPO is pegged at a PE multiple of 36x. In light of Afcons Infrastructure’s robust growth potential, solid financial performance and strategic initiatives aimed at market expansion, we recommend a ‘SUBSCRIBE’ rating for the company,” K R Choksey stated in a declaration.

Axis Capital in its note stated Afcons Infrastructure has actually dealt with a number of intricate tasks several of that include Chenab Bridge– highest single-arch train bridge worldwide, Atal Tunnel– the globe’s lengthiest freeway passage situated at 3,000 metres over water level. Some of the business’s continuous tasks consist of Kolkata Metro- Design and building and construction of passages listed below the Hooghly River; Male to Thilafushi Link Project, Maldives and Construction of a 21 kilometres long passage consisting of India’s very first undersea rail passage (7 kilometres long) for the Mumbai– Ahmedabad broadband rail hallway.

“During the last 11 financial years and the 3-month period ended June 30, 2024, the company has successfully completed 79 projects across 17 countries with a total historic executed contract value of Rs 56,305 crore… The company’s healthy order book has contributed to strong financial performance. For the 3 months ended June 30, 2024, and 2023 and the FY 2024, 2023 and 2022, the company’s revenue from operations amounted to ₹3,154.36 Cr, ₹ 3,171.41 Cr, ₹13,267.49 Cr, ₹12,637.38 Cr, and ₹11,018.97 Cr, respectively, and the EBITDA amounted to ₹371.69 Cr, ₹314.06 Cr, ₹1,583.12 Cr, ₹1,373.79 Cr, and ₹1,068.59 Cr, respectively,” it included.

Afcons Infrastructure IPO Price and Lot Size

The cost band of the Rs 5,430-crore IPO has actually been taken care of at Rs 440 to Rs 463 per share for the general public problem.

Investors can bid for 32 shares in one whole lot and in multiples thereof.

Afcons Infrastructure IPO: More Details

The Afcons Infrastructure IPO equity shares make up a fresh problem of as much as Rs 1,250 crore and the market (OFS) as much as Rs 4,180 crore.

Goswami Infratech Pvt Ltd, a marketer team business, is marketing shares with OFS.

Of the overall profits from the fresh problem of shares, Afcons Infrastructure has actually suggested to utilize Rs 80 crore for capital investment in the direction of acquisition of building and construction tools.

It will certainly utilize Rs 320 crore in the direction of financing lasting functioning funding demands.

Around Rs 600 crore will certainly be made use of for early repayment or set up settlement of a part of particular superior loanings. The staying funds will certainly be for basic business objectives.

Afcons Infrastructure is the front runner facilities, design and building and construction business of the Shapoorji Pallonji team– a varied Indian corporation– and has a tradition of over 6 years.