Afcons Infrastructure IPO sees momentum in subscription to 36% on Day 2
The Initial Public Offering of Afcons Infrastructure Limited was subscribed 36% on the second day of bidding.
The issue received bids of 3,15,57,920 shares against the offered 8,66,19,950 equity shares, at a price band of ₹440-463, according to the data available on the stock exchanges.
Employee Portion was fully subscribed. Non-Institutional Investors Portion and Retail Portion were subscribed 0.72 times and 0.36 times respectively, whereas Qualified Institutional Buyer Portion was subscribed 0.08 times. The issue kicked off for subscription on Friday, October 25, 2024, and will close on Tuesday, October 29, 2024.
A day before the opening of the issue, Afcons Infrastructure Ltd raised Rs 1,621 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were GIC, HDFC MF, ICICI Pru AMC, BlackRock, Fidelity Investments, Goldman Sachs, HSBC Group, Nomura AM, Nippon MF, Fullerton, Enam Holdings, Birla MF, Mirae MF, Quant MF, Invesco MF, Eastbridge, Amundi, Invesco HK, Loomis & Sayles, HDFC Life, 360One AIF, Manulife, Mirae Global, WhiteOak (MF), WhiteOak, BNP Baroda MF, LIC MF, BCI, Jupiter AM, NS Partners, ICICI Pru Life, Abakkus, Oaktree, Think Investment, Helios MF, Mahindra, Trust MF, Edelweiss Life, Carnelian, Allspring, Birla Offshore, MK Ventures, Jain Global, Jane Street, PIMCO, SBI General Insurance, Nuvama Crossover fund, GAM Investment UK, Neuberger, Taurus MF, ITI MF, Nippon Life, Verition, Zeta Global Funds (OEIC) PCC Limited - Zeta Series B Fund PC.
Leading brokerage firms such as Anand Rathi, Geojit Securities, Canara Bank, Deven Choksey, SMIFS, Arihant Capital, Swastika Investmart, Marwadi Shares and Finance, BP Wealth, Mehta Equities, GEPL Capital have given a “subscribe” rating to the issue, citing strong, diversified business model with a solid order book and consistent financial performance in the infrastructure sector. Afcons reported healthy financial growth from FY22 to FY24, with revenue, EBITDA, and PAT increasing at CAGRs of 9.7%, 20.8%, and 12.1%, respectively. The issue is priced at a P/E of 35X. Thus, the issue appears to be fairly priced compared to earnings and growth of the business.
ICICI Securities Limited, DAM Capital Advisors Limited, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are book running lead managers, and Link Intime India Private Limited is the registrar of the issue.
Company Information
Afcons Infrastructure Limited is an Indian conglomerate with a rich history spanning over six decades. The company has a proven track record of successfully delivering a wide range of complex and challenging engineering, procurement, and construction (EPC) projects both domestically and internationally. According to the Fitch Report, Afcons is recognized as one of India’s leading international infrastructure firms, as per the 2023 rankings by Engineering News-Record (ENR) based on international revenue for the financial year 2023.
The table below shows subscription data for all the categories of investors:
Afcons Infrastructure Limited Last updated on | ||||
Sr.No. | Category | No.of shares offered / reserved | No. of shares bid for | No. of times of total meant for the category |
1 | Qualified Institutional Buyers (QIBs) | 2,45,68,181 | 20,56,064 | 0.08 |
1(a) | Foreign Institutional Investors (FIIs) | - | 20,03,072 | - |
1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | - | 1,088 | - |
1(c) | Mutual Funds | - | 896 | - |
1(D) | Others | - | 51,008 | - |
2 | Non Institutional Investors(NIIS) | 1,84,26,137 | 1,32,04,544 | 0.72 |
2.1 | Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) | 1,22,84,092 | 92,35,456 | 0.75 |
2.1(a) | Corporates | - | 12,54,112 | - |
2.1(b) | Individuals (Other than RIIs) | - | 76,94,336 | - |
2.1(c) | Others | - | 2,87,008 | - |
2.2 | Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) | 61,42,045 | 39,69,088 | 0.65 |
2.2(a) | Corporates | - | 21,152 | - |
2.2(b) | Individuals (Other than RIIs) | - | 38,34,048 | - |
2.2(c) | Others | - | 1,13,888 | - |
3 | Retail Individual Investors (RIIs) | 4,29,94,319 | 1,56,59,968 | 0.36 |
3(a) | Cut Off | - | 1,36,46,656 | - |
3(b) | Price Bids | - | 20,13,312 | - |
4 | Employee Reserved | 6,31,313 | 6,37,344 | 1.01 |
4(a) | Employee (Cut off) | - | 5,19,200 | - |
4(b) | Employee (Price) | - | 1,18,144 | - |
5 | Reservation PortionShareholder | - | - | - |
5(a) | RPS (Cut off) | - | - | - |
5(b) | RPS (Price) | - | - | - |
Total | 8,66,19,950 | 3,15,57,920 | 0.36 | |
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