Afcons Infrastructure IPO Listing: Shares Make Tepid Market Debut, Listed At Discount To Issue Price

Afcons Infrastructure IPO Listing: Afcons Infrastructure’s IPO, which opened for subscription from October 25 to October 29, raised Rs 5,430 crore through a book-built issue

Afcons Infrastructure IPO Listing: Afcons Infrastructure Ltd., the flagship infrastructure arm of the Shapoorji Pallonji Group, made a subdued debut on the stock exchanges on Monday. Shares of Afcons were listed at Rs 426 on the National Stock Exchange (NSE), marking an 8 per cent discount to its issue price of Rs 463 per share. On the BSE, the shares opened at Rs 430.05, reflecting a 7.12 per cent dip from the issue price.

The company's initial public offering (IPO) garnered modest interest, particularly among retail investors. Analysts had anticipated a flat opening, given the limited grey market premium (GMP) observed before the listing.

Afcons Infrastructure’s IPO, which opened for subscription from October 25 to October 29, raised Rs 5,430 crore through a book-built issue. This included a fresh issue of 2.7 crore shares valued at Rs 1,250 crore and an offer for sale of 9.03 crore shares, amounting to Rs 4,180 crore. The IPO price band was set between Rs 440 and Rs 463 per share.

The IPO received an overall subscription of 2.63 times, with the retail category seeing 94 per cent subscription. Qualified Institutional Buyers (QIBs) showed stronger interest, subscribing 3.79 times, while the Non-Institutional Investors (NII) category recorded 5.05 times subscription.

ICICI Securities, Dam Capital Advisors Ltd, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets acted as the book-running lead managers for the IPO, while Link Intime India managed the share allocation process.

The listing of Afcons Infrastructure shares on both the NSE and BSE caps a relatively quiet launch for the company in public markets.