Despite its impressive track record in complex engineering, the IPO's first day on D-Street showed modest interest, with a 10% subscription rate, according to BSE data.

The company’s IPO attracted bids for 8,606,560 shares against the total 86,619,950 shares on offer.

Retail investors showed 14% interest, while non-institutional investors subscribed to 11% of their allocated shares. Institutional buyers, however, barely participated, with only a 1% subscription.

Meanwhile, employees displayed stronger support with a 39% subscription to their designated portion.

Known for delivering challenging infrastructure projects both in India and abroad, Afcons set its IPO price between Rs 440 and Rs 463 per share, offering a fresh issuance of Rs 1,250 crore in shares, alongside an offer-for-sale worth Rs 4,180 crore by promoter Goswami Infratech.

The subscription period is open until October 29, giving investors a few more days to participate.

As of June 30, 2024, Afcons is managing 65 projects across 12 countries, with an order book valued at Rs 31,747 crore. The company has a strong foothold in Asia, Africa, and the Middle East, handling innovative projects that underscore its global growth.

Grey Market Premium (GMP)

Interest in Afcons’ IPO has translated to a healthy grey market premium, with its unlisted shares trading at a premium of Rs 60 as of October 25, reflecting a 13% gain over the IPO's upper price band of Rs 463. This premium suggests strong investor sentiment and expectations for gains once public trading begins.

Key IPO Details

Issue Period: October 25–October 29, 2024

Type: Book Built Issue

Price Band: Rs 440–Rs 463 per share

Face Value: Rs 10 per share

Lot Size: 32 shares

Minimum Investment: Rs 14,816 for retail investors

Expected Allotment Date: October 30, 2024

Listing Date: November 4, 2024

The IPO mix includes a fresh issue valued at Rs 1,250 crore and an offer-for-sale of Rs 4,180 crore. Proceeds from the fresh issuance are earmarked as follows:

  • Rs 800 crore for acquiring new construction equipment
  • Rs 3,200 crore for long-term working capital
  • Rs 6,000 crore to repay existing debt
  • Remaining funds for general corporate purposes

The anchor investor shares will be subject to a lock-in period: 50% of shares will be locked for 90 days, and the remaining 50% for 30 days from the allotment date, adding stability to the issue's early investors.