Afcons Infrastructure Share Price & IPO Listing Highlights November 4, 2024: Afcons Infrastructure shares jump over 10% post-listing at discounted price

Afcons Infrastructure stock closed at ₹472.60 on the NSE, 10.94% higher than the listing price of ₹426. 

Company’s market capitalisation stood at ₹17,381.50 crore.

On the BSE, the stock closed 10.35% higher at ₹474.55, after listing at ₹430.05.

The issue price was set at ₹463, and the IPO was subscribed 2.63 times.

The shares of Afcons Infrastructure, the flagship of the Shapoorji Pallonji group, listed at an 8 per cent discount to its IPO issue price but then gained and went to an intra-day high that was over 12 per cent higher than the listing price.

Read full report by Janaki Krishnan of businessline here

Shares of Afcons Infrastructure climbed 11.36% on the NSE to ₹474.40 as at 3 pm. 

On the BSE, the stock gained 10.01% to ₹473.10.

Stock of Afcons Infrastructure traded at ₹472.40 on the NSE, higher by 10.89% as at 2 pm.

Shares of Shapoorji Pallonji Group’s flagship infrastructure engineering and construction firm Afcons Infrastructure Ltd on Monday listed with a discount of 8 per cent against the issue price of Rs 463.

The stock made its debut at Rs 430.05, a discount of 7.11 per cent from the issue price on the BSE. It further declined 9.31 per cent to Rs 419.85.

At the NSE, it listed at Rs 426, registering a decline of 7.99 per cent.

The company’s market valuation stood at Rs 16,680.87 crore.

The initial public offer of Afcons Infrastructure got fully subscribed on the last day of share sale on Tuesday and ended with 2.63 times subscription.

The Rs 5,430-crore initial share sale had a price band of Rs 440-463 per share.

The IPO had a combination of a fresh issue of shares worth Rs 1,250 crore and an Offer-for-Sale (OFS) of up to Rs 4,180 crore by promoter Goswami Infratech Pvt Ltd.

The Maharashtra-based company will utilise Rs 80 crore from the fresh issue proceeds to buy construction equipment, Rs 320 crore for long-term working capital, Rs 600 crore to repay debt, and the rest for general corporate purposes.

Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified institution and has a leading presence in engineering & construction, infrastructure, real estate, water, energy and financial services sectors across the globe.

PTI

Afcons Infrastructure stock jumped 10.52% on the NSE to trade at ₹470.80 as at 1 pm.

(NSE data)

Today’s high on the NSE: ₹465

Today’s low: ₹420.25

Afcons Infrastructure emerged as the lowest bidder for construction Package BH-05 of Bhopal Metro Phase 1 project’s 12.915 km Blue Line (Line-2) which will connect Bhadbhada Chauraha – Ratnagiri Tiraha via 13 elevated stations. Afcons’ bid of Rs. 1006.74 crore was declared the lowest - L1 This package by Madhya Pradesh Metro Rail Corporation Ltd (MPMRCL) includes the construction of the entire Blue Line’s viaduct, 13 stations, and a ramp leading to Subhash Nagar Depot which will be shared with Orange Line (Karond Circle – AIIMS) for maintaining and stabling. MPMRCL had invited bids for the Blue Line’s construction, financed by the European Investment Bank (EIB) through a €400 million loan. The contract comes with a 3 year construction deadline.

Shares climbed 9.07% on the NSE to ₹464.65.

Afcons Infrastructure stock climbed 8.54% on the NSE to ₹462.40 as at 12 noon. 

On the BSE, the stock rose 7.34% to ₹461.60.

Post listing view on Afcons Infrastructure IPO by Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Afcons Infrastructure discount listing was in line with our expectations driven by market sentiments and lower than expected subscription. The subdued demand for IPO offer was mainly on the back of higher OFS by parent which is facing a challenging phase marked by significant debt and family business restructuring. The fund raised will help the parent better manage obligations, debt crisis in the other group companies. This objective was a hurdle for short term investors to bid aggressively.

Despite the listing below issue price, we remain optimistic on the business long term growth. Long term rationale to invest and hold is justified mainly on the back of a Healthy order book supporting its future growth, strong Track record of executing complex, challenging and unique EPC projects both within India and internationally and Stable financial performance over the years along with a capable efficient management team to take the company to newer heights. For allotted investors, we recommend holding it for the long term as we believe long term growth is intact with Govt focus on infrastructure growth. Short term traders and investors can hold/accumulate more on dips with a target near to Rs 480-500.

Post-listing view on Afcons Infrastructure from Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

Afcons Infrastructure Limited’s IPO was listed at ₹426, marking around an 8% loss from its issue price of ₹463, which aligned with expectations given the current market sentiment. The IPO received a moderate subscription of 2.7 times, primarily driven by interest from institutional and retail investors. The listing performance reflects the cautious market outlook, despite the company’s strong credentials as part of the Shapoorji Pallonji Group and a solid order book supporting future growth.

While the discounted listing may disappoint short-term investors, the IPO’s reasonable pricing, along with Afcons’ stable financial performance and project pipeline, offer potential long-term value. Investors with a long-term outlook may consider holding onto their shares, as the company’s fundamentals could drive gradual value appreciation once market conditions stabilise.

Shares of Afcons traded at ₹458 on the NSE, higher by 7.51% as at 11 am. On the BSE, the stock gained 6.49% to trade at ₹457.95.

Shares were listed today at ₹426 and ₹430.05 on the NSE and BSE, respectively.

Track bl’s stock market live updates here

Shares of Afcons Infrastructure gained 5.89% on the NSE to trade at ₹451.10 as at 10.20 am, post-listing at ₹426.

Shares of Afcons were listed on the NSE at ₹426 and at ₹430.05 on the BSE, as against the issue price of ₹463.

Track bl’s stock market live updates here

Listing of Afcons Infrastructure Limited on 04th November 2024

Symbol: AFCONS

Series: Equity “B Group” 

BSE Code: 544280

ISIN: INE101I01011

Face Value: Rs 10/-

Issued Price: Rs 463/- per share

Shares of Afcons will list at ₹430.05 on the BSE and at ₹426 on the NSE.

Shares of Afcons Infrastructure will be listed on the bourses today. The company has fixed the IPO price at ₹463 at the upper end of the ₹440-463 price band. The initial public offering (IPO) of Afcons Infrastructure, the flagship infrastructure, engineering, and construction company of the Shapoorji Pallonji group, sailed through on the last day, thanks to institutional investors’ bidding.

The IPO was subscribed 2.63 times, even as the portion reserved for retail investors did not get 100 per subscription (subscribed 0.94 time or 94 per cent). However, QIB portion was subscribed 3.79 times, NIIs 5.05 per cent and employees by 1.67 times.

The ₹5,430crore IPO consisted of a mix of fresh issues of up to ₹1,250 crore and an offer of sale of up to ₹4,180 crore by the promoter. 

KS Badri Narayanan of businessline writes