Sun Oct 27 03:41:54 UTC 2024: ## Afcons Infrastructure IPO Receives Tepid Response on Day One
**Mumbai, October 28, 2023:** Afcons Infrastructure Ltd.’s Rs 5,430-crore initial public offering (IPO) received a lukewarm response on its first day of trading, with only 10% of the shares being subscribed. The weak demand has resulted in a significant drop in the grey market premium (GMP), indicating a potentially modest debut on the stock market.
The GMP, which reflects the anticipated premium at which shares are expected to trade on the stock market, has fallen to Rs 33, a 45% decrease from Rs 60 reported on October 24. This suggests a possible listing price of around Rs 496, representing a 7.1% premium over the upper IPO price of Rs 463 per share.
The muted response to the IPO is attributed to various factors, including the current correction phase in the Indian market, with both the NSE Nifty 50 and BSE Sensex experiencing an 8% decline from recent highs.
The IPO, which comprises a fresh issue of Rs 1,250 crore and an offer-for-sale worth Rs 4,180 crore, was subscribed only 0.1 times on the first day. Retail investors led the lukewarm response, booking 60.5 lakh shares, while non-institutional investors and qualified institutional buyers subscribed to 20.49 lakh shares and 2.5 lakh shares, respectively.
Afcons Infrastructure, the flagship company of the Shapoorji Pallonji group, intends to utilize the fresh issue proceeds for capital expenditure, funding long-term working capital requirements, and prepayment of outstanding borrowings. The company had reported a 9.4% year-on-year jump in net profit to Rs 449.7 crore in fiscal 2024, with revenue from operations reaching Rs 13,267.5 crore.
The three-day subscription window for the IPO will close on October 29, with share allotment expected on October 30. The listing date is yet to be confirmed.
First Piper 