Mon Oct 28 10:27:05 UTC 2024: ## Afcons Infrastructure IPO Struggles to Attract Investors

**MUMBAI, INDIA -** Afcons Infrastructure’s initial public offering (IPO), aiming to raise Rs 5,430 crore, has seen a slow start on its second day. The IPO, which opened for bidding on October 25, 2024, remains only partially subscribed.

While the IPO is considered one of the largest in India’s construction and infrastructure sector this year, investor interest has been muted.

The IPO includes a fresh issue of 2.7 crore shares valued at Rs 1,250 crore and an offer for sale (OFS) of 9.03 crore shares worth Rs 4,180 crore. The OFS will provide an exit route for existing shareholders, while the fresh issue will contribute to the company’s capital needs.

Despite a price band set between Rs 440 and Rs 463 per share, the IPO has only achieved 0.28 times subscription as of midday on October 28, 2024. This indicates investor caution.

Several financial analysts have, however, expressed positive sentiments towards the IPO, recommending it for long-term investors seeking stability in the infrastructure sector.

Geojit Financial Services Limited highlighted Afcons Infrastructure’s geographic spread across various sectors, contributing to a strong revenue base and balanced risk. The firm’s strong order book, coupled with its successful delivery of large projects, ensures stability in future revenue.

Rajan Shinde of Mehta Equities Ltd echoed similar views, recommending subscription with a long-term perspective. He emphasized Afcons Infrastructure’s investment in advanced equipment and strong track record in execution, making it a significant player in the Indian infrastructure sector.

The current Grey Market Premium (GMP) stands at Rs 21, indicating an expected listing price of around Rs 484, based on the upper price band. This suggests a potential gain of 4.54% per share on listing day, if market conditions remain favorable.

The IPO is expected to be allotted on October 30, 2024, with listing scheduled for November 4, 2024, on the BSE and NSE.

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