Afcons Infrastructure IPO Lists On 8% Discount

The initial public offering (IPO) of Afcons Infrastructure made a discounted debut on the exchanges in the Monday trading session.  The issue listed with a discount of over 8 per cent at Rs 426 on the National Stock Exchange (NSE) against its issue price of Rs 462. 

The Rs 5,430 crore IPO consisted of a fresh issue worth Rs 1,250 crore and an offer-for-sale (OFS) worth Rs 4,180 with the price band fixed at Rs 440 to 463 per equity share. 

During its subscription window, Afcons Infrastructure IPO closed with a total subscription of nearly 2.77 times totalling to Rs 10,547 crore. The retail category remained undersubscribed with 99 per cent subscription, totalling Rs 1,878 crore till the final day. Notably, the qualified institutions category was subscribed almost 4 times with subscription totalling to Rs 4,312 crore. 

Jefferies India, Nomura Financial Advisory and Securities, SBI Capital Market, ICICI Securities, Dam Capital Advisors and Nuvama Wealth Management were the book running lead managers, while Link Intime was the registrar to the offer. 

IPO Objectives

The net proceeds of Rs 1,250 crore from the fresh issue will be utilised towards funding capital expenditure requirements for purchase of  construction equipment and general corporate purposes.
 

The firm will also utilise the proceeds to repay the debt and funding long-term capital requirement.  

Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders. 

Firm’s Financials

Afcons Infrastructure registered a revenue of Rs 13,646 crore in FY 23-24 against Rs 12,844 crore in FY 22-23. 

While, the profit after tax (PAT) increased to Rs 450 crore in FY 24 against Rs 410 crore in FY 23. 

Overall, the revenue increased by 6 per cent, whereas PAT climbed 9 per cent between FY 23 and FY 24.