The highly anticipated Afcons Infrastructure IPO, part of the Shapoorji Pallonji Group, has garnered strong interest, reaching 60% subscription by Day 3. This IPO, valued at ₹5,430 crore, is a mix of fresh equity shares and an offer for sale (OFS) by promoter Goswami Infratech Pvt Ltd.
Here’s everything investors need to know, including subscription status, grey market premium (GMP), and expert recommendations.
Afcons Infrastructure IPO Overview
Afcons Infrastructure, a leading player in engineering and infrastructure, opened its IPO on October 25 and saw rapid subscription growth. The IPO, with a price band set between ₹440 and ₹463, includes a fresh issue worth ₹1,250 crore and an OFS of ₹4,180 crore.
Key Details of Afcons Infrastructure IPO
| Aspect | Details |
|---|---|
| IPO Size | ₹5,430 crore |
| Fresh Issue | ₹1,250 crore |
| Offer for Sale (OFS) | ₹4,180 crore |
| Price Band | ₹440 – ₹463 |
| Promoter Entity | Goswami Infratech Pvt Ltd |
| Grey Market Premium (GMP) | ₹25 on Day 3 |
Subscription Status as of Day 3
By the third day of bidding, the IPO reached 60% subscription, with the non-institutional investors (NII) segment seeing full subscription at 100%. The IPO has seen a gradual increase in demand, with the retail and qualified institutional buyer (QIB) segments catching up.
Subscription Breakdown by Investor Category
| Investor Segment | Subscription Status |
|---|---|
| Retail Individual Investors (RII) | 41% |
| Non-Institutional Investors (NII) | 100% |
| Qualified Institutional Buyers (QIB) | 37% |
| Employee Segment | Oversubscribed |
Grey Market Premium and Expert Reviews
The Afcons Infrastructure IPO is trading at a GMP of ₹25 in the grey market, which has increased from ₹18 the previous day, reflecting growing investor confidence. Brokerage houses like Anand Rathi and BP Equities have assigned a ‘subscribe’ rating to the IPO, recommending it as a medium- to long-term investment.
Factors Driving Investor Interest
- Shapoorji Pallonji Group Backing: As a reputable conglomerate, Shapoorji Pallonji’s support strengthens investor confidence in Afcons.
- Infrastructure Demand: With India’s infrastructure development initiatives, companies like Afcons are well-positioned to benefit from government spending.
- Strategic Growth Plans: Afcons has an extensive pipeline of high-value infrastructure projects, offering revenue growth potential.
Conclusion
With increasing demand, strong backing, and positive analyst ratings, the Afcons Infrastructure IPO offers promising growth potential. Investors interested in the infrastructure sector may find this IPO an attractive option as it continues to see momentum in the final hours of bidding.
Disclaimer
This article provides information on the Afcons Infrastructure IPO and should not be considered financial advice. Please consult a financial professional for specific investment guidance.
