Afcons Infrastructure IPO Opens Today: Check GMP, Price, Subscription Status, and Expert Review – Should You Buy or Skip?

The initial public offering (IPO) of Afcons Infrastructure Limited has opened today. Investors can begin bidding for shares starting at 10:00 AM on Friday. Afcons Infrastructure is part of the Shapoorji Pallonji Group and is a well-known company in engineering and construction. The IPO is available for subscription from 25th October 2024 to 29th October 2024. The price range for the IPO has been set between ₹440 and ₹463 per share. The company plans to list the shares on both the BSE and NSE.

Afcons Infrastructure shares are already trading in the grey market. According to market watchers, the grey market premium (GMP) for the shares today is ₹76.

Afcons Infrastructure IPO: Key Details

1. Afcons Infrastructure IPO GMP: The grey market premium for Afcons Infrastructure shares is ₹76 today.
2. Afcons Infrastructure IPO Price: The price range for the shares is between ₹440 and ₹463 per share.
3. Afcons Infrastructure IPO Date: The IPO opened on 25th October 2024 and will close on 29th October 2024.
4. Afcons Infrastructure IPO Size: The company aims to raise ₹5,430 crore, which will include both fresh issues and offers for sale (OFS).
5. Lot Size: Investors can bid for the IPO in lots, with each lot consisting of 32 shares.
6. Allotment Date: The likely date for share allotment is 30th October 2024.
7. IPO Registrar: Link Intime India Private Limited is the registrar for this IPO.
8. Lead Managers: The IPO is managed by ICICI Securities, Dam Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets.
9. IPO Listing: The shares are expected to be listed on the BSE and NSE. The listing date is likely to be 4th November 2024, as the stock market will be closed on 1st November for Diwali.

Should You Buy Afcons Infrastructure IPO?

Review 1: Mahesh M Ojha, AVP at Hensex Securities, recommends buying the IPO for medium to long-term investment. Afcons Infrastructure is a key player in engineering and construction projects globally. As of June 2024, its order book stands at ₹31,747 crore across 12 countries and 65 projects. The company has recently secured new orders worth ₹5,936.7 crore and is the lowest bidder for contracts worth ₹10,732.4 crore. Over the past 11 years, Afcons has completed 79 projects in 17 countries, with a total value of ₹56,305 crore. The company’s strong reputation, backed by the 150-year experience of the Shapoorji Pallonji Group, makes it a solid investment opportunity. The IPO is valued at a P/E ratio of 36.1x to 37.9x based on FY24 earnings, and Ojha recommends applying for the IPO for medium to long-term gains.

Review 2: Sagar Shetty, a research analyst at StoxBox, also suggests subscribing to the IPO. Afcons showed strong financial growth from FY22 to FY24, with revenue growing at a 9.7% CAGR, EBITDA at 20.8%, and profit after tax (PAT) at 12.1%. For FY24, EBITDA margins were 10.3% and PAT margins were 3.4%, while Q1 FY25 saw margins of 11.2% and 2.9%, respectively. The company reported a return on equity (ROE) of 12.5% and a return on capital employed (ROCE) of 13.7% in FY24. At the upper price band, the company’s P/E ratio of 35.1x is below the industry average. With its strong market position and growth potential, Shetty recommends a “SUBSCRIBE” rating for the IPO from a medium to long-term perspective.

Before the subscription period opened, Afcons raised ₹1,621 crore from anchor investors.