Afcons Infra Share Price Analysis: IPO Performance and Market Outlook stock lists at 8% discount

Shares of Afcons Infrastructure Ltd opened for trading on Dalal Street at a lower-than-expected price on Monday.

Afcons Infra Share Price Analysis: IPO Performance and Market Outlook stock lists at 8% discount

Afcons Infrastructure Ltd started its listing process on Dalal Street with its shares opening at below the estimated price. Trading at Rs 426 on the NSE, the stock started with a discount of 7.99% as compared to the issue price of Rs 463. On the BSE, the stock had opened with a discount of 7.12% from the issue price by trading at Rs 430.05. This initial trading performance was also weaker than what many had expected, with current market volatility and selling pressure also at play.

The share of Afcons traded in the grey market with GMP of Rs 20-25 per share even before its market debut suggesting a 5-6% positive listing. The market debut did not reflect all this optimism because of flaky market conditions.

Afcons Infrastructure IPO The Afcons Infrastructure IPO went up for bidding from October 25 to October 29 and offered shares at a price band of Rs 440-463. The lot size was set at 32 shares, and with this, it raised the total amount to Rs 5,430 crore. From this, it included Rs 1,250 crore in fresh shares and Rs 4,180 crore in offer-for-sale. The IPO could be subscribed 2.63 times in total but was heavily subscribed by the QIBs, wherein the segment was subscribed to the tune of 3.79 times. NIIs also came forward with pretty decent interest and booked allotment to the tune of 5.05 times. The retail investor lot was, however, poorly subscribed at just 94% and the employee section also got booked at 1.67 times.

Company Profile and Business Lines

Afcons Infrastructure, based in Mumbai, has been one of the oldest companies in the infrastructure engineering and construction sector within the Shapoorji Pallonji Group since 1959. The company has over 60 years of experience and operates through various business lines, including:
Marine and Industrial Projects
Surface Transport Projects
Urban Infrastructure Projects
Hydro and Underground Projects
Oil & Gas Projects
This diversified portfolio has placed Afcons at a very excellent position with a reliable entity in main infrastructure developments all over India and beyond.

Brokerage Opinions and Recommendations

Most the brokerage maintains a buy call for the stock for long term, even though the issue did not get an excellent market debut. Leading financial institution like ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management and SBI Capital Markets had played a crucial role in the IPO management process. The registrar of the issuance has been Link Intime India, making sure the process was flawless for all concerned.

Service Enhancement: Reach to the customers:.

Afcons Infrastructure is one of the leading engineering and construction companies in the Shapoorji Pallonji Group. Founded in 1959, the company boasts of decades of experience with infrastructure projects ranging from marine works to surface transport, urban development, hydro and underground projects, to oil and gas ventures.

Even though the listing is not as good as was expected, several brokerage houses still suggest that investment in Afcons should be done for long-term returns. They feel that though there might be short-term pressures on the market, the track record of the company and the diversity of the projects are promising.

Disclaimer:

All above recommendations are of the market analysts. Neither the author, nor the brokerage firm, nor Stockstoday.in will be responsible for any loss arising out of any such decision taken based upon this information. All users are cautioned to take their own expert advice prior to making any investment decision.

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