Afcons Infrastructure’s Stock Market Debut Falls Flat, Lists 8% Below Issue Price – Here’s What Happened

Afcons Infrastructure shares began trading on the stock market today, but the debut was lackluster. The shares were listed on the National Stock Exchange (NSE) at ₹426 per share, marking an 8% discount from the IPO issue price of ₹463. On the Bombay Stock Exchange (BSE), the stock opened slightly higher at ₹430.05, still 7.12% below the issue price.

Background of Afcons Infrastructure and the IPO

Afcons Infrastructure is the flagship infrastructure company of the Shapoorji Pallonji Group, a well-known name in the construction and infrastructure sector in India. The company’s Initial Public Offering (IPO) had shown moderate interest from retail investors, which contributed to today’s cautious listing performance.

Details of Afcons Infrastructure’s IPO

The IPO subscription period started on Friday, October 25, and closed on Tuesday, October 29. The IPO allotment was finalized on October 30, with the listing date scheduled for today, November 4, 2024. Afcons Infrastructure’s shares are now available on both major stock exchanges, the BSE and NSE.

IPO Price and Funds Raised

Afcons Infrastructure had set its IPO price band between ₹440 to ₹463 per equity share. At the upper end of this price range, the company raised a total of ₹5,430 crore. The IPO included a mix of fresh issue shares and an offer for sale:

• Fresh Issue: 2.7 crore equity shares, amounting to ₹1,250 crore.
• Offer for Sale: 9.03 crore shares, valued at ₹4,180 crore.

Subscription Details and Response

Overall, the Afcons Infrastructure IPO was subscribed 2.63 times, reflecting a mixed response across different investor categories:

• Retail Investors: The retail portion of the IPO received 94% subscription, indicating lukewarm interest among individual investors.
• Qualified Institutional Buyers (QIBs): This category showed stronger interest with a subscription rate of 3.79 times.
• Non-Institutional Investors (NIIs): The NII category saw the highest enthusiasm, with a 5.05 times subscription rate.

Market Analysts’ Expectations and Grey Market Trends

Market analysts had predicted a flat listing for Afcons Infrastructure’s shares based on recent grey market premium (GMP) trends, which showed minimal enthusiasm for a significant price surge at the listing. This cautious outlook from analysts seemed to align with the actual market debut today, as the shares opened below the issue price.

Lead Managers and IPO Registrar

The IPO was managed by several prominent financial institutions, including:

• ICICI Securities
• Dam Capital Advisors Ltd
• Jefferies India
• Nomura Financial Advisory And Securities (India)
• Nuvama Wealth Management
• SBI Capital Markets

The IPO registrar was Link Intime India, responsible for overseeing the IPO application and allotment process.

Afcons Infrastructure’s debut performance could impact investors’ perspectives, especially considering the recent cautious stance from retail investors. The performance of the stock in the coming weeks will likely be monitored closely to see if the company can recover its listing-day losses.