Afcons Infrastructure IPO: The initial public offering (IPO) of Afcons Infrastructure Limited has opened today. Bidding for the Afcons Infrastructure IPO will begin at 10:00 AM during Friday deals. The flagship infrastructure engineering and construction company of the diversified conglomerate Shapoorji Pallonji has set the Afcons Infrastructure IPO date from 25th October 2024 to 29th October 2024. The company has fixed the Afcons Infrastructure IPO price band at ₹440 to ₹463 per equity share. The book build issue is proposed for listing on the BSE and the NSE. Meanwhile, the company’s shares are available in the grey market today ahead of the subscription opening. According to stock market observers, shares of Afcons Infrastructure Limited are available at a premium of ₹76 in the grey market today.
Afcons Infrastructure IPO details
1] Afcons Infrastructure IPO GMP: According to market observers, the company’s shares are available at a premium of ₹76 in today’s grey market.
2] Afcons Infrastructure IPO price: The infra engineering and construction company has a fixed price band for the public issue, at ₹440 to ₹463 per equity share.
3] Afcons Infrastructure IPO date: The book build issue opens on 25th October 2024 and will remain open until 29th October 2024.
4] Afcons Infrastructure IPO size: The company aims to raise ₹5,430 crore from this public issue, which will mix fresh problems and OFS.
5] Afcons Infrastructure IPO lot size: A bidder can apply in lots, and one lot of the book build issue comprises 32 company shares.
6] Afcons Infrastructure IPO allotment date: The most likely date for share allocation is 30th October 2024.
7] Afcons Infrastructure IPO registrar: Link Intime India Private Limited has been appointed official registrar of the public issue.
8] Afcons Infrastructure IPO lead managers: ICICI Securities, Dam Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets have been appointed lead managers of the book-build offer.
9] Afcons Infrastructure IPO listing: The public offer is proposed for listing on the BSE and the NSE. The most likely date for the Afcons Infrastructure IPO listing is 4 November 2024, as 1 November is a stock market holiday for Diwali 2024.
Afcons Infrastructure IPO: Buy or not?
10] Afcons Infrastructure IPO review: Assigning a ‘buy’ tag to the public issue, Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Afcons Infrastructure Ltd. (AIL), a prominent Shapoorji Pallonji group entity, has established itself in complex EPC project execution globally. As of Jun ’24, AIL’s order book stands at ₹31,747 cr across 12 countries and 65 projects, with a 2.52x order book to sales ratio. The company has secured recent orders worth ₹5,936.7 cr and is L1 for ₹10,732.4 cr. Over 11 years, AIL has executed 79 projects in 17 countries, totalling ₹56,305 cr. Its diversified operations span marine, industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas. AIL’s leadership, backed by Shapoorji Pallonji group’s 150-year expertise, drives growth. The valuation is 36.1x/37.9x P/E multiple of FY24 consolidated earnings at price bands of ₹440 and ₹463. On Strong Brand Entity and Robust and Diversified Order Book, we hereby advise you to Apply for Medium to Long Investment in IPO.”
Giving a ‘subscribe’ tag to the public offer, Sagar Shetty, Research Analyst at StoxBox, said, “The company reported strong financial growth between FY22 and FY24, with a CAGR of 9.7% in revenue, 20.8% in EBITDA, and 12.1% in PAT. For FY24, the EBITDA and PAT margins were 10.3% and 3.4%, respectively, while Q1FY25 saw 11.2% and 2.9% margins, respectively. The company maintained a robust ROE of 12.5% and an ROCE of 13.7% in FY24. The company is valued at a P/E ratio of 35.1x on the upper price band based on FY24 earnings, which is lower than the average P/E of the industry. Given its strong position in the market, the company is poised to capitalize on emerging market opportunities. Therefore, we recommend a “SUBSCRIBE” rating for the issue from a medium to long-term perspective.”
Ahead of the subscription opening, the public issue raised ₹1,621 crore from anchor investors.
