Mon Oct 28 12:58:10 UTC 2024: ## Afcons Infrastructure IPO Receives Tepid Response

**Mumbai, October 28, 2024** – Afcons Infrastructure Ltd., the flagship infrastructure company of the Shapoorji Pallonji group, has seen a muted response to its initial public offering (IPO) so far. The Rs 5,430 crore IPO, which opened for public subscription on Friday, has only received a 0.51 times subscription by the end of the second day of bidding.

While the retail quota saw a 0.38 times subscription, the non-institutional investor (NII) category received a 0.75 times subscription. The Qualified Institutional Buyers (QIB) category saw a 0.88 times subscription.

The grey market premium (GMP), an indicator of expected listing gains, currently stands at Rs 38, signaling a potential 8.21% listing gain. However, this is significantly lower than the 13% GMP recorded last week.

Analysts attribute the tepid response to factors like the current market sentiment and the IPO’s size. While Afcons boasts a strong order book of Rs 31,700 crore and a successful track record of completing 79 projects across 17 countries, the IPO’s valuation has also come under scrutiny.

SBI Securities, K R Choksey, and Axis Capital have all recommended a ‘subscribe’ rating, highlighting the company’s robust growth potential and solid financial performance. However, the IPO’s price band of Rs 440 to Rs 463 per share seems to have raised some concerns among investors.

The IPO is expected to close on October 29, with the share allotment likely to be finalized on October 30. The shares are set to be listed on both BSE and NSE on November 4.

Despite the subdued response so far, Afcons remains optimistic about its long-term growth prospects. The company plans to utilize the proceeds from the fresh issue for capital expenditure, working capital requirements, prepayment of borrowings, and general corporate purposes.

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