Afcons Infrastructure shares make poor debut: List at 7% discount

On the BSE, Afcons Infrastructure shares listed at Rs 430.5, reflecting a discount of 7 per cent against the IPO issue price of Rs 463

Afcons Infrastructure listing today: Shares of Shapoorji Pallonji Group's flagship company, Afcons Infrastructure, made a subdued debut on the bourses on Monday. On the BSE, Afcons Infrastructure shares listed at Rs 430.5, reflecting a discount of 7.01 per cent against the IPO issue price of Rs 463.

 

Similarly, on the National Stock Exchange (NSE), Afcons Infrastructure listed at a discount of 7.99 per cent at Rs 426 against the IPO issue price.

 

Ahead of its listing, the grey market premium (GMP) of the Afcons Infrastructure IPO was quoted around Rs 15, or approximately 3.42 per cent, indicating a lacklustre debut for the company’s shares, according to sources tracking grey market activities. 

The listing performance reflects the cautious market outlook, despite the company's strong credentials as part of the Shapoorji Pallonji Group and its solid order book supporting future growth," said Shivani Nyati, Head of Wealth at Swastika Investmart. "While the discounted listing may disappoint short-term investors, Nyati believes that 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 stabilize," Nyati added.

 

The public issue of Afcons Infrastructure, which comprises a fresh issue of 26,997,840 shares and an offer for sale of 90,280,778 shares, closed for subscription on Tuesday, October 29, 2024, garnering decent participation from investors. The IPO was available at a price band of Rs 440-463 and a lot size of 32 shares.

 

Afcons Infrastructure's IPO received bids for 22,78,22,496 shares against 8,66,19,950 shares offered, resulting in an oversubscription of 2.63 times, according to NSE data. This was led by Qualified Institutional Buyers (QIBs), whose subscription stood at 3.79 times, followed by non-institutional investors (NIIs) at 5.05 times, and retail investors at 0.94 times by the final day of subscription.

 

The basis of allotment was finalised on Wednesday, October 30, 2024.

 

Afcons Infrastructure is the flagship infrastructure, engineering, and construction company of the Shapoorji Pallonji group. In FY24, EPC projects contributed 72.37 percent, item-rate projects contributed 27.38 percent, and cost-plus projects contributed 0.25 percent to revenue. The company has successfully completed 79 projects across 17 countries, with a total historical executed contract value of Rs 56,305 crore. Currently, the company has 65 ongoing projects across 12 countries, with an order book of Rs 31,747 crore.