Afcons Infrastructure IPO Day 2: GMP, subscription status, review, other details. Apply or not?

Afcons Infrastructure IPO: The initial public offering (IPO) of Afcons Infrastructure Limited opened on October 25, 2024 and will continue until October 29, 2024. Hence, applicants have only two days to apply for the Afcons Infrastructure IPO. According to Afcons Infrastructure IPO Subscription Statusthe public issue received a tepid response from India’s primary market investors. However, leading brokerages such as 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 the “subscribe” tag to public issue. The infrastructure engineering company repaired Afcons Infrastructure IPO price range in ₹440 to ₹463 per share. Afcons Infrastructure shares are also available on the gray market. According to stock analysts, the company’s shares are available at a premium of ₹18 today on the gray market.

Afcons Infrastructure IPO GMP today

As mentioned above, Afcons Infrastructure IPO GMP (Grey Market Premium) is available today ₹18, which is ₹41 below GMP on weekends ₹59. This decline in Afcons Infrastructure’s GMP IPO can be attributed to the weak sentiment in the secondary market as the Nifty 50 index has declined for the last four consecutive sessions. however, Afcons Infrastructure IPO GMP today is positive, whereas on 25 October 2024, when the public issue hit the Indian primary market, the gray market was neutral on this book building issue.

Afcons Infrastructure IPO Subscription Status

After the first day of trading, the public issue was subscribed 0.10 times, the retail portion was booked 0.14 times and the NII segment was subscribed 0.11 times.

Afcons Infrastructure IPO Review

Giving a ‘subscribe’ tag to the public issue, KR Choksey Securities said, “Afcons Infrastructure is strategically positioned for sustainable growth in the infrastructure sector, leveraging its extensive experience in executing complex engineering, procurement and construction projects. The company’s strong capabilities in marine, urban and hydro engineering projects, combined with strategic relationships with key customers, Afcons is actively pursuing geographic diversification, focusing on emerging markets in Africa and the Middle East, constantly improving its project delivery methods Afcons’ solid growth potential Infrastructure, solid financial performance and strategic initiatives aimed at market expansion, we recommend a “SUBSCRIBE” rating for the company.”

Mehta Equities also assigned a buy tag to the book building issue, saying, “After going through the financials, the company has shown strong growth in operating profit and net profit of 14.7% and 14.9% in FY23 and moderate growth of 5% and 9.5%, respectively, in the 2024 financial year ₹463/-, the issue requires market capitalization ₹17029 crore, and based on FY25 annualized earnings and fully diluted paid-up capital post-IPO, the company is asking for a PE of 46.48x, which seems quite valued when looking at the industry average of ~40-45x. Investors should also pay attention to the IPO offers, which have almost 77% profit, ie ₹4,180 crore, with a total issue ₹5,430 crore, an area of ​​concern for new investors. The company’s modern equipment base, proven performance capabilities and strategic market position make it a key player in the infrastructure sectors. Hence, looking at all the attributes, we recommend investors to ‘SUBSCRIBE’ on Afcons Infrastructure Ltd for the long term only.”

Details of Afcons Infrastructure IPO

Afcons Infrastructure IPO date is likely to be October 30, 2024, while Afcons Infrastructure IPO date is likely to be November 4, 2024.

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms and not of Mint. We advise investors to consult with certified experts before making any investment decisions.