Afcons Infrastructure makes disappointing debut, lists at 8% discount on NSE – Market News

Afcons Infrastructure was listed at Rs 426 on the National Stock Exchange, a discount of 8% to the issue price.

Shapoorji Pallonji Group’s company’s IPO opened on October 25 and raised Rs 5,430 crore through fresh shares as well as an offer for sale. The IPO bidding closed on October 29. The allotment of shares was finalised on October 30. The company set the IPO price band between Rs 440 and Rs 463 per equity share.

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A retail investor had to bid for a minimum of 32 shares, amounting to Rs 14,816. There were different lot sizes for small and big NIIs, ranging from Rs 2,00,000 to Rs 10,07,488.

Employee reservation

The company set aside 596,659 shares for the employees. These shares were offered to the employees at a discount of Rs 44 to the issue price.

About Afcons Infrastructure

The company is an infrastructure engineering and construction firm of the Shapoorji Pallonji group, with a legacy of over six decades. It has completed 76 projects across 15 countries with a total historic executed contract value of Rs 52,220 crore. The company is globally present in Asia, Africa, and West Asia.

Expert’s take on Afcons Infrastructure

“On valuation parse at the upper price band of Rs 463, the issue is asking for a market cap of Rs 17,029 crore. Based on FY25 annualised earnings and fully diluted post-IPO paid-up capital, the company is asking for a PE of 46.48x, which seems fully priced compared to the industry average of 40-45x. Investors should also look at IPO offers that come with nearly 77% OFS, i.e., Rs 4,180 crore, of a total issue of Rs 5,430 crore, which is a concern for new investors. The company’s advanced equipment base, proven execution capabilities, and strategic market position make it a key player in the infrastructure sector. Hence, considering all attributes, we recommend investors to “Subscribe” to Afcons Infrastructure for a long-term perspective only,” said Rajan Shinde, Research Analyst at Mehta Equities.

BRLMs and Registrar

ICICI Securities, DAM Capital Advisors (formerly IDFC Securities), Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets were the book-running lead managers of the IPO. Link Intime India was the registrar for the issue.

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