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

Afcons Infra IPO GMP indicates minor listing gains amid choppy market

Afcons Infrastructure Ltd initial public offer (IPO) opened for public subscription on October 25 after the Shapoorji Pallonji Group's flagship infrastructure engineering and construction firm mobilised Rs 1,621 crore from anchor investors on Thursday.

The Rs 5,430-crore initial share sale with a price band of Rs 440-463 per share will conclude on October 29.

Meanwhile, the grey market market premium is indicating a minor gain amid choppy market conditions in the domestic market. According to platforms that track the grey market premium activities, the shares of Afcons Infrastructure are commanding a GMP in the price range of Rs 60 in the official market, indicating nearly 13 percent listing gains.

This is a marginal decline compared to what it was commanding on Monday signalling over 15 percent gains.

The allotment of shares is likely to take place on 30th October and the shares will be listed on the exchanges on 4th November, Monday.

Afcons Infrastructure's IPO consists of a fresh issue of shares valued at Rs 1,250 crore and an offer for sale (OFS) worth up to Rs 4,180 crore by promoter Goswami Infratech Private Limited.

Currently, promoter and promoter group entities hold a 99 per cent stake in the Maharashtra-based infrastructure company.

Afcons Infrastructure raises Rs 1,621 crore from anchor investors, IPO to hit Dalal Street on October 25

Afcons plans to allocate Rs 80 crore from the fresh issue for purchasing construction equipment, Rs 320 crore for long-term working capital, Rs 600 crore for debt repayment, with the remaining amount directed towards general corporate purposes.

The Shapoorji Pallonji Group, which was founded in 1865, is a diversified entity with a strong presence across engineering and construction, infrastructure, real estate, water, energy, and financial services globally.

Among its industry peers, Afcons compares itself with companies like Larsen & Toubro Ltd (L&T), KEC International Ltd, Kalpataru Projects International Ltd, and Dilip Buildcon Ltd.

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