Afcons Infrastructure, a prominent engineering and construction firm under the Shapoorji Pallonji Group, is all set to launch its initial public offering (IPO) from October 25 to October 29, 2024. Afcons Infrastructure IPO GMP Today trading at 20 rupee per share showing moderate intrest. So far IPO overall subscription is 0.10X of issue size.
| Table Of Content |
|---|
| Afcons Infra IPO GMP |
| Afcons Infra IPO Details |
| Afcons Infra Financial Performance |
| Afcons Infra Promoters & Peer Comparison |
| Afcons Infrastructure Limited |
| Afcons Infrastructure IPO FAQs |
Afcons Infrastructure IPO GMP
The Afcons Infra GMP has been on quite a journey this week, with each day bringing a fresh pulse on investor excitement. on 24 Oct 2024, it climbed to ₹70, showing solid demand and anticipation around Afcons. But by today, 26 Oct 2024, it cooled slightly to ₹60, a dip that might suggest a bit of caution settling in as investors weigh their options. Earlier, on 23 Oct 2024, the GMP was at ₹40, noticeably lower, before bouncing back to ₹60 on 22 Oct 2024. This rollercoaster of numbers tells a story about the shifting hopes and strategies of investors who are closely following Afcons’ next steps.
| Date | GMP |
|---|---|
| 27 Oct 2024 | 20 |
| 26 Oct 2024 | 60 |
| 25 Oct 2024 | 60 |
| 24 Oct 2024 | 70 |
| 23 Oct 2024 | 40 |
| 22 Oct 2024 | 60 |
Afcons Infrastructure IPO Subscription Status
As of October 25, 2024, the subscription status for the Afcons Infrastructure IPO presents a mixed picture, reflecting the cautious optimism of investors. With an overall subscription rate of just 0.10 times, interest varies significantly across different categories. Retail investors show a bit more enthusiasm, subscribing at a rate of 0.14 times, indicating some confidence in the company’s prospects.
Non-Institutional Investors (NIIs) have a subscription rate of 0.11 times, with smaller bids below ₹10 lakh performing slightly better than larger ones. However, Qualified Institutional Buyers (QIBs) have been notably quiet, with their subscription rate resting at a mere 0.01 times, which may suggest a wait-and-see approach among institutional players. On a brighter note, employee participation is notably higher at 0.39 times, reflecting a strong belief in the company’s future from those within the organization.
| Investor Category | Shares Offered | Shares Subscribed | Subscription Rate |
|---|---|---|---|
| Qualified Institutional Buyers (QIB) | 24,568,181 | 250,496 | 0.01x |
| Non-Institutional Investors (NII) | 18,426,137 | 2,050,496 | 0.11x |
| – Bids above ₹10 lakh (bNII) | 12,284,092 | 1,056,832 | 0.09x |
| – Bids below ₹10 lakh (sNII) | 6,142,045 | 993,664 | 0.16x |
| Retail Investors (RII) | 42,994,319 | 6,060,992 | 0.14x |
| Employees | 631,313 | 244,576 | 0.39x |
| Total | 86,619,950 | 8,606,560 | 0.10x |
Afcons Infra IPO Details
Afcons Infrastructure is aiming to raise ₹5,430 crores through its IPO, consisting of a fresh issue and an offer for sale (OFS). The fresh capital infusion will support debt reduction and corporate initiatives, making it an appealing proposition for long-term investors.
| Detail | Description |
|---|---|
| Total Issue Size | ₹5,430 crores |
| Fresh Issue | ₹1,250 crores |
| Offer for Sale (OFS) | ₹4,180 crores |
| Price Band | ₹440 – ₹463 per share |
| Employee Discount | ₹44 per share |
| Lot Size | 32 shares (₹14,816 minimum bid) |
| Investor Quota | QIB: 50%, NII: 15%, Retail: 35% |
| Subscription Period | October 25 – 29, 2024 |
| Allotment Date | October 30, 2024 |
| Listing Date | November 4, 2024 |
| Stock Exchanges | BSE, NSE |
Afcons Infra Financial Performance
Afcons’ financials reveal a company on a consistent growth trajectory, reflecting its success in capitalizing on India’s infrastructure boom and expanding global footprint. The following table summarizes Afcons’ financial performance over the last few fiscal years:
| Financial Metric | FY 2022 | FY 2023 | FY 2024 | Q1 FY 2025 |
|---|---|---|---|---|
| Revenue (₹ crores) | 11,018.97 | 12,637.38 | 13,267.49 | 3,154.36 |
| Net Income (₹ crores) | 356.36 | 410.87 | 449.74 | 91.59 |
| Profit Margin (%) | 3.23 | 3.25 | 3.39 | 2.90 |
| Return on Capital Employed (RoCE, %) | 17.30 | 20.04 | 20.18 | – |
| Debt-to-Equity Ratio | 0.57 | 0.49 | 0.68 | – |
Afcons Infrastructure Promoters
Afcons is promoted by some prominent entities, including:
- Goswami Infratech Private Limited
- Shapoorji Pallonji and Company Private Limited
- Floreat Investments Private Limited
- Members of the Mistry Family, including Shapoorji Pallonji Mistry, Firoz Cyrus Mistry, and Zahan Cyrus Mistry.
Pre-IPO investment participation from leading investors such as GIC Singapore (₹756 crores), ENAM Holdings (₹400 crores), and Synergy Capital (₹400 crores) reflects strong institutional confidence in the company’s growth potential.
IPO Proceeds Utilization: Strengthening Financial Position
The IPO proceeds will serve two primary purposes:
- Debt Repayment: A portion of the funds raised will go towards reducing the company’s debt, thus lowering interest costs and strengthening the balance sheet.
- General Corporate Purposes: This will include strategic investments for future growth and enhancing operational efficiencies.
Growth Footprint and Project Portfolio
Afcons Infrastructure has an impressive track record of handling large-scale projects across various sectors. Its portfolio spans:
- Marine and Industrial: Including port and shipyard construction.
- Surface Transport: Road, rail, and bridge infrastructure.
- Urban Infrastructure: Metro, tunnels, and other urban projects.
- Hydro and Underground: Dam and water management systems.
- Oil and Gas: Offshore and onshore projects.
By June 2024, Afcons had completed 79 projects across 17 countries, with an executed contract value totaling ₹56,305 crores. The company currently has 65 active projects in 12 countries, with an order book of ₹31,747 crores, underscoring its robust growth pipeline.
Peer Comparision
With the Indian government’s increasing focus on infrastructure development and Afcons’ proven capability, this IPO offers a unique opportunity to invest in a growth-oriented company. Here’s a quick look at how it compares to some industry peers:
| Company | EPS (₹) | PE Ratio | RoNW (%) | Revenue (₹ crores) |
|---|---|---|---|---|
| Afcons Infrastructure | 12.06 | 33.33 – 35.08 | 13.02 | 13,267.49 |
| Larsen & Toubro Limited | 74.51 | 48.49 | 11.80 | 1,83,340.70 |
| KEC International Limited | 6.85 | 97.21 | 4.80 | 17,281.71 |
| Kalpataru Project International | 29.06 | 36.72 | 9.58 | 16,361.44 |
Afcons’ valuation metrics, such as the price-to-earnings (PE) ratio and return on net worth (RoNW), indicate it is well-positioned among its peers.
Afcons Infrastructure Limited
Company Overview
Afcons Infrastructure Limited, headquartered in the bustling city of Mumbai, is a prominent player in India’s infrastructure development scene. With a focus on large-scale construction projects, the company has earned a reputation for delivering high-quality work across various sectors, including roads, highways, bridges, railways, and urban infrastructure. Thanks to its commitment to excellence and timely delivery, Afcons has become a trusted name in the industry.
Afcon infrastructure Ltd – Key Highlights
Afcons’ reputation for successfully executing challenging and unique engineering projects positions it as a leader in the infrastructure sector. It boasts a specialized equipment fleet, including 11 marine barges, 153 cranes, and 16 tunnel boring machines, along with a skilled workforce of nearly 4,000 permanent employees. The company’s expertise in complex projects like underwater tunnels and large marine works makes it a preferred choice for ambitious infrastructure ventures.
Operating Model
Afcons Infrastructure Limited operates mainly through Engineering, Procurement, and Construction (EPC) contracts. This means they manage every aspect of a project—from the initial design to the procurement of materials and final construction. By overseeing the entire process, Afcons ensures high standards of quality and efficiency, which helps them build strong relationships with government agencies and private clients alike.
Key Projects Completed
Afcons Infrastructure Limited has a rich portfolio of completed projects that showcase their capabilities. Some highlights include:
- National Highway Development: The company has played a crucial role in the construction of key sections of India’s Golden Quadrilateral and the North-South-East-West corridors.
- Major Bridges & Flyovers: Afcons has successfully built vital bridges and flyovers in major cities, including Mumbai and Delhi, helping to ease traffic congestion and improve connectivity.
- Urban Infrastructure: They have also worked on essential projects like water supply systems and sewage treatment plants, addressing the challenges faced by rapidly growing urban areas.
Ongoing Projects
The future looks bright for Afcons Infrastructure Ltd, with several exciting ongoing projects in the pipeline:
- Highway Expansion: The company is actively involved in highway expansion projects under the Bharatmala Pariyojana initiative, which aims to enhance the country’s road network and boost economic development.
- Railway Development: Afcons is making significant contributions to the modernization of Indian Railways, including the construction of new railway stations and freight corridors that are essential for efficient transportation.
- Smart City Initiatives: As part of India’s Smart Cities Mission, Afcons Infrastructure Ltd is engaged in creating sustainable urban solutions, focusing on transportation, waste management, and innovative urban planning.
Disclaimer – Afcons Infra IPO GMP Trends
The GMP data for Afcons Infra IPO shared here is based on market rumors and may change rapidly. It’s not an official or guaranteed price indicator. Please do your own research and consult with a financial advisor before making any investment decisions. Stock Paisa is not responsible for any losses or decisions based on this information. Stay informed and invest wisely!
Afcons Infra IPO FAQs
What is Afcons Infra IPO GMP price today?
At present GMP is trading at 20 rupee per share.
When will the Afcons Infrastructure IPO open and close?
- The IPO will be open for subscription from October 25 to October 29, 2024.
What is the Afcons Infrastructure IPO size and structure?
- The total issue size is ₹5,430 crore, consisting of a fresh issue worth ₹1,250 crore and an offer for sale of up to ₹4,180 crore.
What is the expected use of proceeds from the Afcons Infrastructure IPO?
- The funds will be utilized for purchasing construction equipment, meeting long-term working capital requirements, repaying debt, and general corporate purposes.
Who are the lead managers for the Afcons Infrastructure IPO?
- The book-running lead managers include ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets.
What is the pricing and lot size for the Afcons Infrastructure IPO?
- The price band for the IPO will be announced before the bidding period starts, and the minimum lot size will be based on the final pricing.
How to apply for the Afcons Infra IPO?
- Investors can apply through online platforms provided by stockbrokers, using either the ASBA facility via banks or UPI.
How can I check the Afcons Infrastructure IPO allotment status?
- The allotment will be finalized on October 30, 2024, and can be checked online through the designated IPO registrars.
Who are Afcons Infrastructure’s peers in the industry?
- The company’s listed competitors include Larsen & Toubro (L&T), KEC International, Kalpataru Projects, and Dilip Buildcon.