Afcons Infrastructure Limited, a flagship infrastructure engineering and construction company of the Shapoorji Pallonji group, has officially launched its Initial Public Offering (IPO) today, targeting a massive ₹5,430 crores. This IPO consists of a fresh issue of 269.97 lakh shares worth ₹1,250 crores and an offer for sale of 902.80 lakh shares totaling ₹4,180 crores. The subscription period for this significant offering will be open from October 25 to October 29, 2024, with the allotment date expected to be finalized on or about October 30, 2024. Shares will subsequently be listed on the BSE and NSE, with a tentative listing date set for November 4, 2024.

The share price band for the Afcons Infrastructure IPO is established between ₹440 and ₹463 per equity share. At the upper end of the price band, the market capitalization of the company is projected to reach ₹17,026 crores. Investors looking to participate in this IPO will need to consider the lot size, which is set at 32 shares. For retail investors, the minimum investment required amounts to ₹14,816, while High-Net-Worth Individuals (HNIs) must invest in a minimum of 14 lots (448 shares), totaling ₹2,07,424.

The IPO is being managed by prominent financial institutions including Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited. The registrar for this issue is LINK INTIME INDIA PRIVATE LIMITED.

Afcons Infrastructure Limited IPO Grey Market Premium (GMP)

As of today, the Grey Market Premium (GMP) for the Afcons Infrastructure IPO stands at ₹87. It's crucial to note that while GMP can offer insights into market sentiment, it does not guarantee the price discovery process, as trading in the grey market is unregulated. This metric is primarily influenced by the demand and supply dynamics of the shares in the unorganized market, which makes it not recommended as a sole basis for investment decisions. The GMP is provided for educational and informational purposes only.

Afcons Infrastructure IPO Live Subscription Status Today

The subscription for the Afcons Infrastructure IPO is officially open today, and interested investors can monitor the live subscription status to gauge demand.

Afcons IPO Anchor Investors Report

In a significant move, Usha Financial Services has secured ₹1,621.49 crores from anchor investors at the IPO price of ₹463 per share, allocating 3,50,21,597 equity shares to these investors. It's important to note that the shares allotted to anchor investors are drawn from the Qualified Institutional Buyers (QIBs) reservation portion.

Afcons Infrastructure Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online

Investors eager to check their allotment status can do so post-allotment on October 30, 2024. Here’s a quick guide on how to verify your allotment status:

• Navigate to the IPO allotment status page.
• Select Afcons Infrastructure Limited IPO from the dropdown list of IPOs.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to check your allotment status.

This straightforward process enables investors to quickly ascertain their allotment status and proceed accordingly.

Objectives of Afcons Infrastructure Limited IPO

The proceeds from the fresh issue are earmarked for several key objectives, which include:

1. ₹800 million for capital expenditure aimed at acquiring construction equipment.
2. ₹3,200 million designated for long-term working capital requirements.
3. ₹6,000 million for the prepayment or scheduled repayment of certain outstanding borrowings and acceptances.
4. Additional funds for general corporate purposes.

Afcons Infrastructure IPO Review

Afcons Infrastructure Limited has built a strong reputation over its six-decade legacy in executing numerous complex, challenging, and unique Engineering, Procurement, and Construction (EPC) projects. The company is backed by a skilled management team, including notable figures such as Satish G. Paretkar, Avinash Patil, Gokul Javalikar, Minoo Motiram Lalvani, V. Ashwini Kumar, and Sandeep Desai.

In terms of financial performance, the revenue from operations for the three-month period ending June 30, 2024, stood at ₹32,134.70 million, with fiscal years 2024, 2023, and 2022 recording revenues of ₹1,36,468.74 million, ₹1,28,440.90 million, and ₹1,12,695.49 million, respectively. The company's EBITDA figures for these periods reflect strong growth, with ₹3,716.93 million for Q1 FY24, and ₹15,831.24 million, ₹13,737.89 million, and ₹10,685.99 million in the respective fiscal years.

The profit after tax for the same three-month period was ₹915.86 million, indicating a positive trend alongside the annual figures of ₹4,497.38 million, ₹4,108.60 million, and ₹3,576.05 million for FY24, FY23, and FY22.

For this IPO, the company has set a pre-issue Earnings Per Share (EPS) of ₹13.20 and a post-issue EPS of ₹12.22. The pre-issue P/E ratio stands at 35.08x, while the post-issue P/E ratio is 37.88x. In comparison, the industry P/E ratio is approximately 47.91x. With a Return on Capital Employed (ROCE) of 20.18% and a Return on Equity (RoE) of 13.28% for FY24, these metrics suggest that the IPO is fairly priced.

With a Grey Market Premium (GMP) indicating potential listing gains of around 19%, the Afcons Infrastructure IPO has attracted attention. Given the company’s financial performance and the overall valuation, this IPO could be a viable opportunity for risk-tolerant investors seeking potential listing gains or long-term investment returns.

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