Last update:October 29, 2024, 12:37 PM IST

Afcons IPO: The issue, which closes on October 29, is a combination of a fresh issue of shares worth Rs 1,250 crore and an OFS of up to Rs 4,180 crore

Afcons Infrastructure IPO.

Afcons Infrastructure IPO Day 3 Live Updates: The initial public offering (IPO) of Afcons Infrastructure, the leading infrastructure engineering and construction company of the Shapoorji Pallonji Group, faced challenges in the first two days of bidding. However, the initial public offering of Afcons Infrastructure IPO was 97% subscribed on the third day of subscription today, at 12:21 IST, according to BSE data.

Subscription Status

The initial share sale received a bid for 8,38,36,864 shares against 8,66,19,950 shares on offer, at 12:21 pm IST, according to BSE.

The portion intended for retail investors received 51 percent subscription while the quota intended for non-institutional investors was subscribed 2.26 times. The share of qualified institutional buyers (QIB) is reserved at 79 percent. The employee share was subscribed 1.33 times.

Afcons IPO: GMP today

Afcons Infrastructure IPO IPO today is +40. This indicates that Afcons Infrastructure share price was trading at a premium of Rs 40 in the gray market, according to Investorgain.com.

Considering the upper end of the IPO price band and the current premium in the gray market, the estimated listing price of Afcons Infrastructure share price is shown at Rs 503 apiece, i.e. 8 .64 percent higher than the IPO price of Rs 463.

GMP is based on market sentiments and keeps changing. The “gray market premium” indicates that investors are willing to pay more than the issue price.

The price band of the Rs 5,430 crore IPO has been fixed between Rs 440 and Rs 463 per share for the public issue.

Key dates for Afcons Infrastructure IPO

The Afcons Infrastructure IPO will remain open for public subscription between October 25 and 29. Afcons Infrastructure’s IPO share allotment is likely to be finalized on October 30, while its shares will be listed on both the BSE and NSE on November 4.

Afcons Infrastructure IPO: Analyst Recommendations

Afcons Infrastructure, over the last 11 years, has executed 79 projects across 17 countries with a total executed contract value of Rs 56,305 crore. Over the years, it has expanded its presence globally, particularly in Asia, Africa and the Middle East. The business areas cover five major infrastructure verticals, namely marine and industrial, surface transportation, urban infrastructure, hydropower and metro, and oil and gas.

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

“The company, in the 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 consolidated earnings for FY24 respectively on a capital basis post-emission. The company demonstrated healthy financial performance as revenue/EBITDA/PAT increased by 9.7%/20.8%/12.1% CAGR between FY22 and FY24 to reach Rs 13,267.5 cr/Rs 1 365.0 cr/Rs 449.7 cr respectively,” SBI Securities said.

Brokerage firm KR Choksey has recommended a “subscribe” rating to the Afcons Infrastructure IPO.

Afcons Infrastructure is strategically positioned for sustained growth in the infrastructure sector, capitalizing on its extensive experience in delivering complex engineering, procurement and construction projects.

With a strong order book of Rs 31,700 crore and a successful track record of completing 79 projects across 17 countries, he added.

“Given its strong financials and proactive growth strategies, the company is positioned for a favorable valuation. The IPO is priced at a PE multiple of 36x. In light of Afcons Infrastructure’s strong growth potential, strong financial performance and strategic initiatives aimed at market expansion, we recommend a ‘SUBSCRIBE’ rating to the company,” KR Choksey said in a press release.

Axis Capital, in its note, said Afcons Infrastructure has worked on several complex projects, some of which include the Chenab Bridge, the world’s tallest single-arch railway bridge, and the Atal Tunnel, the world’s longest road tunnel located at 3,000 meters above sea level. Some of the company’s ongoing projects include designing the Calcutta Metro and building tunnels under the Hooghly River; Malé-Thilafushi Link Project, Maldives and construction of 21 km long tunnel including India’s first underwater rail tunnel (7 km long) for the Mumbai – Ahmedabad High Speed ​​Rail Corridor.

“Over 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 executed historical contract value of Rs 56,305 crore… The healthy order book of the company contributed to strong financial performance. For the 3 months ended June 30, 2024 and 2023 and financial years 2024, 2023 and 2022, the Company’s operating revenue stood at ₹3,154.36 Cr, ₹3,171.41 Cr, ₹13,267, 49 Cr, ₹12,637.38 Cr and ₹11,018.97 Cr, respectively. , and EBITDA stood at ₹371.69 Cr, ₹314.06 Cr, ₹1,583.12 Cr, ₹1,373.79 Cr and ₹1,068.59 Cr, respectively,” it said. he added.

Afcons Infrastructure IPO Price and Lot Size

The price band of the Rs 5,430 crore IPO has been fixed between Rs 440 and Rs 463 per share for the public issue.

Investors can bid 32 shares in a single lot or in multiples.

Afcons Infrastructure IPO: more details

Afcons Infrastructure IPO shares include fresh issue of up to Rs 1,250 crore and offer for sale (OFS) of up to Rs 4,180 crore.

Goswami Infratech Pvt Ltd, a promoter group company, is selling shares through OFS.

Of the total proceeds from the fresh issue of shares, Afcons Infrastructure has proposed to use Rs 80 crore for capital expenditure towards the purchase of construction equipment.

It will use Rs 320 crore to fund long-term working capital requirements.

Around Rs 600 crore will be used for prepayment or scheduled repayment of part of some outstanding borrowings. The remaining funds will be used for general corporate purposes.

Afcons Infrastructure is the flagship infrastructure, engineering and construction company of the Shapoorji Pallonji Group – a diversified Indian conglomerate – and has a heritage spanning over six decades.