Afcons Infrastructure IPO day 2: GMP, subscription status, review, other details. Apply or not?
- Afcons Infrastructure IPO GMP: According to market observers, shares of the company are available at a premium of ₹18 in the grey market today
Afcons Infrastructure IPO: The initial public offering (IPO) of Afcons Infrastructure Limited opened on 25th October 2024 and will remain open until 29th October 2024. So, applicants have just two days to apply for Afcons Infrastructure IPO. According to Afcons Infrastructure's IPO subscription status, the public issue has received a tepid response from Indian primary market investors. However, leading brokerages like Anand Rathi, Arihant Capital Markets, BP Equities, Canara Bank Securities, Geojit Securities, GEPL Capital, KR Choksey Securities, Marwadi Shares and Finance, Mehta Equities, SMIFS, and Swastika Investment have assigned a 'subscribe' tag to the public issue. The infrastructure engineering company has fixed the Afcons Infrastructure IPO price band at ₹440 to ₹463 per equity share. Afcons Infrastructure shares are also available in the grey market. According to stock market observers, shares of the company are available at a premium of ₹18 in the grey market today.
Afcons Infrastructure IPO GMP today
As mentioned above, Afcons Infrastructure IPO GMP (Grey Market Premium) today is ₹18, which is ₹41 lower than the weekend GMP of ₹59. This dip in Afcons Infrastructure IPO GMP can be attributed to weak secondary market sentiments, as the Nifty 50 index has been sliding for the last four straight sessions. However, Afcons Infrastructure IPO GMP today is positive, whereas, on 25th October 2024, when the public issue hit the Indian primary market, the grey market was neutral on this book-build issue.
Afcons Infrastructure IPO subscription status
By 4:03 PM on day two of bidding, the public issue had been subscribed 0.29 times, the retail portion had been booked 0.35 times, the NII segment had been subscribed 0.48 times, and the QIB segment had been subscribed 0.03 times.
Afcons Infrastructure IPO review
Giving a 'subscribe' tag to the public issue, KR Choksey Securities said, "Afcons Infrastructure is strategically positioned for sustained growth within the infrastructure sector, capitalizing on its extensive experience in executing complex engineering, procurement, and construction projects. The company's robust capabilities in marine, urban infrastructure, and hydro projects, coupled with strategic relationships with key clients, enhance its competitive edge. Afcons is actively pursuing geographical diversification, focusing on emerging markets in Africa and the Middle East while continuously innovating its project execution methodologies. 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."
Mehta Equities has also assigned a 'buy' tag to the book build issue, saying, "By looking at the financials, the company posted respectable growth in revenue from operations and net profit at 14.7% and 14.9% in FY2023 and a modest growth of 5% and 9.5%, respectively, in FY2024. On valuation parse at the upper price band of ₹463/-, the issue is asking for a market cap of ₹17029 crore, and based on FY 2025e annualized 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. ₹4180 crore, with a total issue of ₹5430 crore, an area of concern for new investors. The company's advanced equipment base, proven execution capabilities and strategic market position make it a key player in infrastructure sectors. Hence, by looking at all attributes, we recommend investors to "SUBSCRIBE" to Afcons Infrastructure Ltd for a long-term perspective only."
Afcons Infrastructure IPO details
The Afcons Infrastructure IPO allotment date is most likely 30 October 2024, whereas the Afcons Infrastructure IPO listing date is most likely 4 November 2024.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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