Afcons Infra IPO subscribed 2.63 times on Day 3 amid NII push; GMP slips to 3%

Afcons Infrastructure has mopped up Rs 1,621 crore from anchor investors.

Afcons Infrastructure initial public offering (IPO) received 2.63 times subscription on the last day of bidding on October 29. The initial share sale received bids for 22.78 crore shares shares as against 8.66 crore shares on offer, as per NSE data.

The portion for non-institutional investors (NII) fetched 5.05x subscription while the category for retail individual investors (RIIs) got subscribed 94 percent. The qualified institutional buyers (QIBs) part received 3.79 times subscription, while the employees bought 1.67 times their reserved portion.

Shapoorji Pallonji Group's flagship infrastructure engineering and construction firm earlier mopped up Rs 1,621 crore from anchor investors.

Afcons Infra IPO GMP has also slipped in the unofficial market. According to multiple platforms that track the grey market premium activities, the shares of Afcons Infra are commanding a GMP in the price range of Rs 18, indicating 3.89 percent listing premium.

Earlier, the shares were trading at a premium of nearly 16 percent till last week.

Afcons Infra shares will be allotted to successful bidders on October 30, while the listing of shares will take place on November 4, Monday. The official registrar to the issue is Link Intime India Private Limited.

Afcons Infra IPO GMP indicates minor listing gains amid choppy market conditions

The Rs 5,430-crore IPO has been set within a price range of Rs 440-463 per share. This offering consists of a fresh issue of shares worth Rs 1,250 crore and an Offer for Sale (OFS) of up to Rs 4,180 crore by promoter Goswami Infratech Pvt Ltd.

Promoter and promoter group entities currently hold a 99 per cent stake in Maharashtra-based Afcons Infrastructure.

The company plans to allocate Rs 80 crore from the fresh issue proceeds to purchase construction equipment, Rs 320 crore for long-term working capital, Rs 600 crore to repay debt, with the remaining funds earmarked for general corporate purposes.

Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified conglomerate with a prominent presence in engineering and construction, infrastructure, real estate, water, energy, and financial services sectors worldwide.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.