Afcons Infra’s ₹5,430 Cr IPO Opens Tomorrow: Price Band, GMP, and Key Investment Insights You Can’t Miss

Afcons Infrastructure’s ₹5,430 crore IPO is set to open for subscription on October 25 and will close on October 29. Here’s a breakdown of key details about the IPO before you consider investing:

1) Afcons Infrastructure Business Overview
Afcons Infrastructure has a strong history of delivering complex engineering, procurement, and construction (EPC) projects both in India and internationally. According to a Fitch report, the company is one of India’s top international infrastructure firms, ranked by Engineering News-Record (ENR) based on revenue from international projects for FY23. Their business is spread across five key areas: marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas.

2) Industry Overview
The Indian construction industry was valued at ₹23.97 lakh crore as of FY23. It’s projected to be one of the fastest-growing construction markets globally, expected to grow at 9.5%-10% per year and reach ₹38.5 lakh crore by FY28.

3) Afcons Infrastructure’s Grey Market Premium (GMP)
The GMP (Grey Market Premium) of Afcons Infrastructure is currently around ₹60, reflecting a 13% premium to the issue price.

4) IPO Size
The IPO will raise ₹5,430 crore, with ₹1,250 crore coming from fresh issue shares and ₹4,180 crore through an offer for sale (OFS) by promoter Goswami Infratech.

5) Price Band
Afcons has set the IPO price band between ₹440 and ₹463 per share. Investors can place bids in lots of 32 shares.

6) IPO Structure
In the IPO, 50% of the shares are reserved for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors.

7) Afcons Infrastructure’s Financial Performance
In FY24, Afcons Infrastructure saw a slight drop in revenue, reporting ₹3,154 crore. However, profit after tax increased marginally to ₹91.6 crore from ₹90.9 crore in the previous year.

8) Use of IPO Proceeds
The company plans to use ₹80 crore to purchase construction equipment, ₹320 crore for long-term working capital, ₹600 crore to repay debt, and the remaining for general corporate purposes.

9) Lead Managers for the IPO
The book-running lead managers for the IPO are ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities, Nuvama Wealth Management, and SBI Capital Markets.

10) Allotment and Listing Dates
The allotment of shares is expected to be finalized on October 30, and Afcons Infrastructure is likely to list on stock exchanges on November 4.