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Unlisted shares of Afcons Infrastructure Ltd are trading just Rs 70 higher in the grey market, signalling a 15.12 per cent listing gain from the public issue.
Afcons Infrastructure IPO.
Afcons Infrastructure IPO to Open Tomorrow: The initial public offering (IPO) of Shapoorji Pallonji group firm Afcons Infrastructure Ltd will be opened for public subscription on October 25 and concluded on October 29. The Rs 5,430-crore IPO consists of fresh shares up to Rs 1,250 crore as well as an offer for sale (OFS) by the promoter up to Rs 4,180 crore.
The proceeds from the OFS will be received by the selling shareholder and Afcons will not receive any proceeds from it.
Afcons Infrastructure IPO Key Dates
The Afcons Infrastructure IPO will remain opened for public subscription between October 25 and October 29. The share allotment of the Afcons Infrastructure IPO will likely be finalised on October 30, while its shares will be listed on both BSE and NSE on November 4.
Afcons Infrastructure IPO Price and Lot Size
The price band of the Rs 5,430-crore IPO has been fixed at Rs 440 to Rs 463 per share for the public issue.
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Investors can bid for 32 shares in one lot and in multiples thereof.
Afcons Infrastructure IPO GMP Today
According to market observers, unlisted shares of Afcons Infrastructure Ltd are trading just Rs 70 higher in the grey market than its issue price. The Rs 70 grey market premium or GMP means the grey market is expecting a 15.12 per cent listing gain from the public issue.
The Rs 70 GMP now is lower than the Rs 75 premium in the late evening yesterday, Wednesday.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Afcons Infrastructure IPO: Analysts’ Recommendations
Afcons Infrastructure, in the last 11 years, has executed 79 projects across 17 countries with a total executed contract value of Rs 56,305 crore. Over the years, it has expanded its presence globally and in particular across Asia, Africa and the Middle East. The areas of operations cover five major infrastructure business verticals viz Marine and Industrial, Surface Transport, Urban Infrastructure, Hydro and Underground and Oil and Gas.
SBI Securities in its note said, “The company currently is executing 65 projects across 12 countries with an aggregate order book of Rs 31,747 cr as of June 2024. The order book to sales ratio stood at 2.52x thus offers decent revenue visibility in the near term.”
“The company, at lower and upper price band of Rs 440 and Rs 463, is valued at a P/E multiple of 36.1x/37.9x of its FY24 consolidated earnings respectively based on post issue capital. The company has demonstrated healthy financial performance as Revenue/EBITDA/PAT grew at 9.7%/20.8%/12.1% CAGR between FY22-FY24 to Rs 13,267.5 cr/ Rs 1,365.0 cr/ Rs 449.7 cr respectively,” SBI Securities said.
Afcons Infrastructure IPO: More Details
The Afcons Infrastructure IPO equity shares comprise a fresh issue of up to Rs 1,250 crore and the offer for sale (OFS) up to Rs 4,180 crore.
Goswami Infratech Pvt Ltd, a promoter group company, is selling shares through OFS.
Of the total proceeds from the fresh issue of shares, Afcons Infrastructure has proposed to use Rs 80 crore for capital expenditure towards purchase of construction equipment.
It will use Rs 320 crore towards funding long-term working capital requirements.
Around Rs 600 crore will be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings. The remaining funds will be for general corporate purposes.
Afcons Infrastructure is the flagship infrastructure, engineering and construction company of the Shapoorji Pallonji group — a diversified Indian conglomerate — and has a legacy of over six decades.
“We have a strong track record of executing numerous complex, challenging and unique engineering, procurement and construction (EPC) projects both within India and internationally,” the RHP said.
During the period comprising the last 11 financial years and the three-month period ended June 30, 2024, Afcons has completed 79 projects across 17 countries with a total historic executed contract value of Rs 56,305 crore.
As of June 30, 2024, Afcons had 65 active projects (ongoing projects) across 12 countries, aggregating to an order book of Rs 31,747 crore.
Afcons projects cover five major infrastructure business verticals.
These include marine and industrial, covering ports, and harbour jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks and material handling systems.
The projects are in surface transport, covering highways and roads, interchanges, mining related infrastructure and railways.
Its projects are in urban infrastructure space, covering elevated and underground metro works, bridges, flyovers, and elevated corridors.
Afcons implements hydro and underground projects, covering dams and barrages, tunnels (including large road tunnels) and underground works, water and irrigation.
Afcons takes projects in oil and gas segment, covering both offshore and onshore oil and gas projects.
