Afcons Infrastructure IPO: A Detailed Breakdown of ₹5,430 Crore Public Issue
Afcons Infrastructure Limited, a key player in India’s infrastructure sector, is gearing up for its Initial Public Offering (IPO) set to launch on October 25, 2024. This IPO has attracted significant market attention, as the company is part of the well-known Shapoorji Pallonji Group. With a total issue size of ₹5,430 crore, the IPO includes both a fresh issue and an offer for sale (OFS), presenting a great opportunity for investors eyeing the infrastructure sector.
Afcons Infrastructure IPO Key Details
| IPO Details | Information |
|---|---|
| IPO Opening Date | October 25, 2024 |
| IPO Closing Date | October 29, 2024 |
| Fresh Issue Size | ₹1,250 crore |
| Offer for Sale (OFS) | ₹4,180 crore |
| Face Value per Share | ₹10 per equity share |
| IPO Price Band | Yet to be finalized |
| Total Issue Size | ₹5,430 crore |
| Listing Date | November 4, 2024 |
Important Dates for Afcons Infrastructure IPO
| Event | Date |
|---|---|
| IPO Opening Date | October 25, 2024 |
| IPO Closing Date | October 29, 2024 |
| Basis of Allotment | October 30, 2024 |
| Refunds Initiated | October 31, 2024 |
| Credit to Demat Accounts | October 31, 2024 |
| IPO Listing Date | November 4, 2024 |
Afcons Infrastructure: Company Overview
Afcons Infrastructure has been a significant player in India’s infrastructure landscape for over six decades. The company offers engineering and construction services across various sectors, including:
- Transportation: Roads, bridges, and railways
- Urban Infrastructure: Water supply, waste management
- Power: Energy projects in India and abroad
With a strong focus on both domestic and international projects, Afcons has a proven track record in executing complex infrastructure initiatives.
Indian Infrastructure Market Context
The Indian infrastructure sector is poised for substantial growth, with a CAGR of 9.9% from FY 2023 to FY 2028. This growth trajectory provides a favorable environment for Afcons Infrastructure to expand its operations. The sector is expected to reach a valuation of ₹13.7 trillion by FY 2028, up from ₹8.6 trillion in FY 2023.
Afcons Infrastructure IPO Subscription Breakdown
The Afcons Infrastructure IPO will be available for subscription across multiple investor categories:
| Investor Category | Allocation |
|---|---|
| Retail Investors | Up to 35% of the total issue |
| Qualified Institutional Buyers (QIB) | Up to 50% of the total issue |
| Non-Institutional Investors (NII) | Up to 15% of the total issue |
This wide distribution ensures that a diverse range of investors can participate in the IPO.
Grey Market Premium (GMP) and Investor Sentiment
The grey market premium (GMP) for Afcons Infrastructure shares stood at ₹45 as of the latest updates. While GMP provides an indication of investor sentiment, it is essential to consider both the company’s fundamentals and future growth prospects before making an investment decision.
Financial Health and Risks
Afcons Infrastructure’s financials reflect a strong order book, with 68.42% of projects coming from government contracts. However, the company faces certain risks, such as:
- Bidding Competition: High competition in the bidding process for government projects.
- Delayed Payments: Potential delays in receiving payments from government clients, affecting liquidity.
- Working Capital Loans: As of September 30, 2023, the company had working capital loans amounting to ₹13,904 million, which could strain liquidity.
- Overdue Receivables: Overdue receivables exceeding ₹21 billion, potentially impacting cash flow.
How to Apply for Afcons Infrastructure IPO
Investors interested in applying for the Afcons Infrastructure IPO can do so through various online platforms such as Angel One or other brokerage services. Here’s a simple step-by-step guide:
- Log in to your brokerage account.
- Navigate to the IPO section.
- Select Afcons Infrastructure IPO.
- Enter your UPI ID and desired quantity.
- Submit your application.
Post-application, investors can check their allotment status through the same brokerage platform.
Conclusion: Should You Invest in Afcons Infrastructure IPO?
With its long-standing presence in the Indian infrastructure sector, Afcons Infrastructure offers a solid investment opportunity. However, potential investors should carefully evaluate the company’s financial risks, especially related to its working capital loans and delayed government payments. The company’s growth potential in the rapidly expanding infrastructure market, combined with the strength of its parent group, makes it a contender for long-term growth.
Disclaimer
This article is for informational purposes only and should not be taken as investment advice. Investors are advised to consult with certified financial experts before making any investment decisions.
