Afcons Infrastructure IPO: Public Issue Subscribed 2x On Final Day, GMP Rises; Check Key Dates

Afcons Infrastructure Limited's initial public offering (IPO) is approaching its final day of bidding today, October 29, 2024. Launched on October 25, the IPO has aimed to raise Rs 5,430 crore, with a mix of fresh equity shares and offers for sale (OFS) at a price band of Rs 440 to Rs 463 per equity share. For investors looking to participate, today is the last day to subscribe to the public issue.

The IPO saw a slow start, with limited traction during the initial days of subscription. However, interest has gradually built up, especially among institutional investors. As of 2:51 pm on day three of bidding, the IPO was subscribed 1.96 times, driven largely by the Non-Institutional Investor (NII) and Qualified Institutional Buyer (QIB) segments. Specifically, the NII portion was subscribed 4 times, while the QIB segment showed significant interest with a 2.70 times subscription. The retail segment, however, has been slower to respond, with a 0.68 times subscription rate as of the same time.

Grey Market Premium (GMP)

Afcons Infrastructure's shares are also trading in the grey market, providing a preview of investor sentiment. The current Grey Market Premium (GMP) for Afcons Infrastructure stands at Rs 25, an increase from Monday's GMP of Rs 18. According to market analysts, this uptick reflects positive investor sentiment, spurred by a rally in the broader Indian stock market earlier in the week.

Despite the initially tepid response, Afcons Infrastructure has garnered significant support from leading brokerage houses. Institutions like Anand Rathi, Arihant Capital Markets, BP Equities, Canara Bank Securities, Geojit Securities, GEPL Capital, KR Choksey Securities, Marwadi Shares and Finance, Mehta Equities, SMIFS, and Swastika Investment have assigned a "subscribe" rating to the IPO. These brokerages cite Afcons' solid reputation in the infrastructure sector and its robust financial position as reasons to consider the offering.

About Afcons Infrastructure and IPO Details

Afcons Infrastructure is an engineering powerhouse, known for its expertise in large-scale infrastructure projects. The Rs 5,430 crore IPO includes both fresh equity shares and an OFS component, allowing the company to raise funds while providing an exit option to existing shareholders. By setting the price band between Rs 440 and Rs 463.

As the subscription period comes to a close, investor interest, particularly in the institutional and grey markets, will be key indicators of the IPO's post-listing performance. The strong interest from QIBs and rising grey market premium suggest a positive outlook, despite the slower response from retail investors. If the broader market remains favourable, Afcons Infrastructure may see robust demand both in primary and secondary markets.