Afcons Infrastructure IPO: Full details including subscription status
Business Business: Bidding for the initial public offering (IPO) began on 25 October 2024. According to the IPO subscription status of Afcons Infrastructure, the public issue was 10% subscribed on the first day of bidding. However, despite the weak trend in the secondary market, positive signs are being received in the grey market. According to stock market experts, the company’s shares are available at a premium of ₹59 in the grey market today. On Thursday, the share price of Afcons Infrastructure was trading at par in today’s grey market. This means that Afcons Infrastructure IPO GMP (grey market sentiment) has jumped after the first day of bidding. Leading brokerages such as Anand Rathi, Arihant Capital Markets, BP Equities, Canara Bank Securities, Geojit Securities, GEPL Capital, KR Choksey Securities, Marwari Shares & Finance, Mehta Equities, SMIFS and Swastika Investments have given the ‘subscribe’ tag to the public issue.
Ahead of the Afcons Infrastructure IPO subscription opening date today, the company’s shares were at par in the grey market. However, after the bid opening on Friday last week, the company’s shares became available in the grey market. Today Afcons Infrastructure IPO GMP is ₹59, which is commendable considering the negative sentiments on Dalal Street. IPO Review
Leading brokerage Anand Rathi has given a ‘Subscribe’ tag to Afcons Infrastructure IPO, saying, “At the upper band, the company is valued at 37.9 times FY24 earnings, while annualising FY25 earnings puts it at 46.3 times. Post the issuance of equity shares, the company’s market capitalisation is ₹1,70,261.8 million with a market capitalisation-sales ratio of 1.34 based on FY24 earnings. We believe the issue is perfectly priced and recommend a “Subscribe – Long Term” rating to the IPO.” BP Equities has also given a ‘Buy’ tag to the book build issue, stating, “At the upper price band, the company is valued at a P/E ratio of 35.1x based on FY24 earnings, which is lower than the industry average P/E. Given its strong position in the market, the company is well-positioned to capitalise on emerging market opportunities. Hence, we recommend a “Subscribe” rating for the issue from a medium to long-term perspective.
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Geojit Securities has also given a ‘Subscribe’ tag to the public issue, stating, “At the upper price band of ₹463, AIL is trading at a P/E ratio of 38x for FY24, which is in line with its peers. With the government’s initiatives aimed at infrastructure development, including budgetary allocations and rapid urbanisation, AIL is well-positioned for substantial growth is strategically positioned. Given its extensive experience in completing high-value and complex projects that deliver superior margins. Geographic diversification with operations across multiple sectors broadens their revenue base and mitigates risk. With a strong order book and successful track record of project completions, we assign a “Subscribe” rating for medium to long-term investing.” IPO Subscription Status After the first day of bidding, the public issue was subscribed 0.10 times, the retail portion was booked 0.14 times, and the NII segment was subscribed 0.11 times. The most likely Afcons Infrastructure IPO allotment date is October 30, 2024, while the most likely Afcons Infrastructure IPO listing date is November 4, 2024.
