Afcons Infrastructure IPO Overview

Afcons Infrastructure IPO is a book-built issue worth ₹5,430 crores, comprising a fresh issue of 2.7 crore shares totaling ₹1,250 crores and an offer for sale of 9.03 crore shares amounting to ₹4,180 crores.

The IPO opens for subscription on October 25, 2024, and closes on October 29, 2024. The allotment is expected to be finalized on October 30, 2024, with the company listing on BSE and NSEon November 4, 2024.

The price band is set between ₹440 to ₹463 per share, with a minimum application lot size of 32 shares for retail investors, requiring an investment of ₹14,816. For sNII investors, the minimum lot size is 14 lots (448 shares) amounting to ₹207,424, while for bNII investors, it is 68 lots (2,176 shares), totaling ₹1,007,488.

The IPO’s book-running lead managers are ICICI Securities, Dam Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets. The registrar for the issue is Link Intime India Private Ltd. For detailed information, refer to the Afcons Infrastructure IPO RHP.

Afcons Infrastructure IPO Important dates

Afcons Infrastructure IPO opens on October 25, 2024, and closes on October 29, 2024.

IPO Open Date Friday, October 25, 2024
IPO Close Date Tuesday, October 29, 2024
Basis of Allotment Wednesday, October 30, 2024
Initiation of Refunds Thursday, October 31, 2024
Credit of Shares to Demat Thursday, October 31, 2024
Listing Date Monday, November 4, 2024
Cut-off time for UPI mandate confirmation 5 PM on October 29, 2024

Afcons Infrastructure IPO Financial Performance

Afcons Infrastructure Limited’s revenue increased by 6% and profit after tax (PAT) rose by 9% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 30 Jun 2024 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets 17,184.58 16,233.64 14,301.25 12,973.77
Revenue 3,213.47 13,646.88 12,844.09 11,269.55
Profit After Tax 91.59 449.76 410.86 357.61
Net Worth 3,662.25 3,575.05 3,155.06 2,691.03
Reserves and Surplus 3,342.52 3,255.22 2,653.75 2,190.11
Total Borrowing 3,365.1 2,455 1,562.82 1,555.2

Afcons Infrastructure IPO Key Performance Indicator

The market capitalization of Afcons Infrastructure IPO is Rs 17026.18 Cr.

KPI as of June 30, 2024.

KPI Values
ROE 10.55%
ROCE 14.89%
Debt/Equity 0.91
RoNW 2.50%
P/BV 4.31
PAT Margin (%) 2.85

Afcons Infrastructure IPO Objectives

The Company proposes to utilise the Net Proceeds towards funding the following objects
  • Capital expenditure towards purchase of construction equipment
  • Funding long term working capital requirements
  • Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the Company
  • General corporate purpose

Afcons Infrastructure IPO Lot Size

Investors can bid for a minimum of 32 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 32 ₹14,816
Retail (Max) 13 416 ₹192,608
S-HNI (Min) 14 448 ₹207,424
S-HNI (Max) 67 2,144 ₹992,672
B-HNI (Min) 68 2,176 ₹1,007,488

Afcons Infrastructure IPO Details

IPO Date October 25, 2024 to October 29, 2024
Listing Date [.]
Face Value ₹10 per share
Price Band ₹440 to ₹463 per share
Lot Size 32 Shares
Total Issue Size 117,278,618 shares
(aggregating up to ₹5,430.00 Cr)
Fresh Issue 26,997,840 shares
(aggregating up to ₹1,250.00 Cr)
Offer for Sale 90,280,778 shares of ₹10
(aggregating up to ₹4,180.00 Cr)
Employee Discount Rs 44 per share
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Share holding pre issue 340,738,269
Share holding post issue 367,736,109

Afcons Infrastructure Company Overview and Services

Afcons Infrastructure Limited, incorporated in 1959, is a leading infrastructure engineering and construction company under the Shapoorji Pallonji group, with over six decades of expertise in the industry.As of September 30, 2023, Afcons has completed 76 projects across 15 countries, with a total contract value of ₹522.20 billion. The company currently manages 67 active projects in 13 countries, holding an order book worth ₹348.88 billion. Its global presence spans Asia, Africa, and the Middle East.Afcons operates through five major infrastructure business verticals:

  1. Marine and Industrial: Projects include ports, harbor jetties, dry docks, breakwaters, and LNG tanks.
  2. Surface Transport: Infrastructure for highways, roads, interchanges, railways, and mining.
  3. Urban Infrastructure: Elevated and underground metro systems, bridges, flyovers, and corridors.
  4. Hydro and Underground: Dams, tunnels, underground works, and water irrigation projects.
  5. Oil and Gas: Both offshore and onshore oil and gas infrastructure projects.

Afcons competitive strengths include a strong track record of executing large-scale, complex projects on time, a diversified order book across geographies, longstanding client relationships, and robust financial performance. The company’s collaborative internal teams and strategic equipment base further enhance its execution capabilities.

Afcons Infrastructure IPO SWOT Analysis

Strengths:

  1. Established Legacy: With over six decades of experience, Afcons Infrastructure has a strong reputation and expertise in the infrastructure sector, enhancing investor confidence.
  2. Diverse Project Portfolio: The company has successfully completed 76 projects across 15 countries, showcasing its ability to manage diverse and large-scale infrastructure projects.
  3. Robust Order Book: An order book of ₹348.88 billion with 67 active projects across 13 countries indicates strong future revenue potential and business stability.
  4. Broad Geographic Presence: Global operations in Asia, Africa, and the Middle East allow for market diversification and reduce dependency on any single market.
  5. Multiple Business Verticals: The company’s focus on five major infrastructure sectors—marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas—provides resilience against sector-specific downturns.

Weaknesses:

  1. Project Execution Risks: Large-scale infrastructure projects are often subject to delays, cost overruns, and regulatory hurdles, which can impact profitability and investor sentiment.
  2. High Capital Requirement: Infrastructure projects typically require significant upfront investments, which may strain cash flow and financial resources, especially during economic downturns.
  3. Dependence on Government Contracts: A significant portion of infrastructure projects may be government-funded, making the company susceptible to changes in government policies or budget allocations.

Opportunities:

  1. Growing Infrastructure Demand: Increased government and private sector investment in infrastructure development, especially post-pandemic, presents a significant growth opportunity.
  2. Expansion into Emerging Markets: Afcons can leverage its expertise to enter and establish a foothold in emerging markets with high infrastructure needs.
  3. Sustainability Trends: There is a growing focus on sustainable and green infrastructure projects, which Afcons can capitalize on by integrating innovative and eco-friendly solutions into its offerings.

Threats:

  1. Intense Competition: The infrastructure sector is highly competitive, with numerous players vying for market share, potentially impacting pricing and margins.
  2. Economic Fluctuations: Economic downturns can lead to reduced infrastructure spending by both governments and private sectors, adversely affecting project pipelines.
  3. Regulatory Challenges: Infrastructure projects are subject to stringent regulatory requirements, and any changes in regulations can impact project timelines and costs.

Afcons Infrastructure IPO GMP Details

Afcons Infrastructure IPO last GMP is ₹40, last updated Oct 29th 2024. With the price band of 463.00, Afcons Infrastructure IPO’s estimated listing price is ₹503 (cap price + today’s GMP).The expected percentage gain/loss per share is 8.64%.

The lowest GMP is ₹0, while the highest GMP is ₹225. Stay with us to know the daily price trend of Afcons Infrastructure IPO GMP with expected listing price.

**The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates (sub2), nor do we recommend trading in grey market.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
29-10-2024 Close 463.00 ₹40  1000/14000 ₹503 (8.64%) 29-Oct-2024
28-10-2024 463.00 ₹40   1000/14000 ₹503 (8.64%) 28-Oct-2024
27-10-2024 463.00 ₹24   600/8400 ₹487 (5.18%) 27-Oct-2024
26-10-2024 463.00 ₹19   500/7000 ₹482 (4.1%) 26-Oct-2024
25-10-2024 Open 463.00 ₹15  400/5600 ₹478 (3.24%) 25-Oct-2024
24-10-2024 463.00 ₹60  1500/21000 ₹523 (12.96%) 24-Oct-2024
23-10-2024 463.00 ₹75   1800/25200 ₹538 (16.2%) 23-Oct-2024
22-10-2024 463.00 ₹45  1100/15400 ₹508 (9.72%) 22-Oct-2024
21-10-2024 463.00 ₹70  1700/23800 ₹533 (15.12%) 21-Oct-2024

What is IPO GMP?

The grey market premium (GMP) reflects the unofficial trading price of an IPO before its listing, offering insights into its potential market performance. A positive GMP indicates that the IPO may yield profits, while a negative GMP suggests a possible discount upon listing. However, it’s essential to recognize that IPO GMP can be highly volatile. Therefore, investors should not make decisions solely based on the GMP but should thoroughly assess all relevant factors before investing.

Want to Raise money for your company through SME IPO? Read More

Afcons Infrastructure IPO subscription status 

Afcons Infrastructure IPO subscribed 1.10 times. The public issue subscribed 0.49 times in the retail category, 7.02 times in QIB, and 1.72 times in the NII category by October 29, 2024.

Investor Category Subscription (times) Shares Offered* Shares bid for Total Amount (Rs Cr.)*
Anchor Investors 1 3,50,21,597 3,50,21,597 1,621.500
Qualified Institutions 7.02 23,47,733 1,64,85,984 763.301
Non-Institutional Buyers 1.72 1,75,10,799 3,00,96,064 1,393.448
  bNII (bids above ₹10L) 1.98 1,16,73,866 2,31,66,560 1,072.612
  sNII (bids below ₹10L) 1.19 58,36,933 69,29,504 320.836
Retail Investors 0.49 4,08,58,531 2,01,24,288 931.755
Employees 1.34 5,96,659 7,97,504 36.924
Total ** 1.10 6,13,13,722 6,75,03,840 3,125.428

Total Application : 4,87,006

Note:

  • *: “Shares Offered” and “Total Amount” are calculated based on the upper price of the issue price range.

  • **: The portion of anchor investors (or market makers) is not included in the total number of shares offered.

Afcons Infrastructure IPO Subscription Details (times)

Date QIB NII Retail EMP Total
Day 1
Oct 25, 2024		 0.01 0.11 0.14 0.39 0.10
Day 2
Oct 28, 2024		 0.08 0.72 0.36 1.01 0.36
Day 3
Oct 29, 2024		 7.02 1.72 0.49 1.34 1.10

Afcons Infrastructure IPO Allotment status 

The allotment status of Afcons Infrastructure IPO is expected to be available on October 30, 2024.

Afcons Infrastructure IPO allotment status is not available at this time. Afcons Infrastructure IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Afcons Infrastructure Limited IPO allotment status.

To check Afcons Infrastructure IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Link Intime India Private Ltd either by phone or email. Investors can call on +91-22-4918 6270 or send an email with all relevant details to afconsinfrastructure.ipo@linkintime.co.in.

Afcons Infrastructure Contact Details

Afcons Infrastructure Limited
Afcons House, 16 Shah Industrial Estate,
Veera Desai Road
ndheri (West), Mumbai,-400053
Phone: 022 67191214
Email: gaurang@afcons.com
Website: https://www.afcons.com/en

Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.