Afcons Infrastructure IPO Last Date To Subscribe: Why This IPO Is Long-Term Investment? Know Allotment, GMP

Afcons Infrastructure IPO Last Date To Subscribe: Why This IPO Is Long-Term Investment? Know Allotment, GMP

Personal Finance oi-Pooja Jaiswar

Afcons Infrastructure IPO: The Rs 5,430 crore IPO has received a lacklustre response from investors in the first two days of the bidding. The last date to subscribe to the IPO is on October 29, 2024. Afcons Infrastructure is an attractive bet for long-term wealth creation, and hence Mehta Equities has recommended Subscribe. The IPO’s allotment and listing will follow in the next few days.

Afcons Infrastructure IPO Details:

By the end of the second day, the IPO only subscribed 36% of the total issue size of 8,66,19,950 equity shares. The IPO opened on October 25 and will close on Tuesday. It has a price band of Rs 440 per Equity Share to Rs 463 per Equity Share.

The Rs 5,430 crore IPO size is a combination of fresh issues worth Rs 1,250 crore and Rs 4,180 crore offer for sale (OFS).

Afcons Infrastructure Outlook:

Geojit in its report said, at the upper price band of ₹463, AIL is trading at a P/E ratio of 38x for FY24, which is in line with its peers. With the government’s initiatives aimed at infrastructure development, including increased budgetary allocations and the rapid pace of urbanization, AIL is strategically positioned for substantial growth.

Further, the brokerage’s note said, considering its extensive experience in completing high-value and complex projects that offer better margins. Geographical diversification with operations across multiple sectors broadens their revenue base and mitigates risks. With a robust order book and a successful track record of project completion, it added, “We assign a “Subscribe” rating for medium- to long-term investment.”

Afcons Infrastructure is expected to list with an m-cap of Rs 17,026 crore, which is likely to be higher than Dilip Buildcon which has an m-cap of Rs 6,987.61 crore. Meanwhile, Afcons will follow behind infra giants like KEC International, Kalpataru Project International, and mega-company Larsen & Toubro.

With a significant international footprint, AIL derives about 30% of its revenue from exports, operating in Asia, Africa, and the Middle East. Over the last 11 years, AIL has completed 79 projects in 17 countries, totalling ₹56,305cr. In contract value.

However, notably, the return on equity, as per Geojit data, showed that Afcons ROE is better at 12.5%, outperforming KEC’s ROE of 8.8%, Kalpataru and Dilip Buildcon who have an ROE of 10.3% and 4.6%.

Afcons Infrastructure IPO Allotment:

The allotment status of the IPO will take place on October 30, 2024, while the shares will be either credited or refunded on October 31. The listing will take place on November 4th on BSE and NSE.

Afcons Infrastructure IPO GMP:

As per Investor Grain, Afcons Infrastructure IPO’s last GMP is ₹40, last updated Oct 28th 2024 11:29 PM. With a price band of 463.00, Afcons Infrastructure IPO’s estimated listing price is ₹503 (cap price + today’s GMP).The expected percentage gain/loss per share is 8.64%.

Afcons Infrastructure Ltd. (AIL), the flagship infrastructure, engineering, and construction company of the Shapoorji Pallonji Group, was founded in 1959. AIL’s diverse portfolio includes marine and industrial, surface transport, urban
infrastructure, hydro and underground, and oil and gas projects.

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Original news source Credit: www.goodreturns.in

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