2 weeks Ago
Afcons Infrastructure IPO: The initial public offering (IPO) of Afcons Infrastructure Limited hit the Indian primary market on 25th October 2024 and will remain open until 29th October 2024. This means the Afcons Infrastructure IPO subscription ends this evening, and investors have just one day to apply for the public issue worth ₹ 5,430 crore. The infrastructure engineering company has fixed the Afcons Infrastructure IPO price band at ₹ 440 440 to ₹ 463 per equity share, and the book build issue is a mix of fresh shares and offers for sale (OFS).
According to Afcons Infrastructure's IPO subscription status , the book build offer received a lukewarm response from investors in the first two days of bidding. However, leading brokerages like Anand Rathi, Arihant Capital Markets, BP Equities, Canara Bank Securities, Geojit Securities, GEPL Capital, KR Choksey Securities, Marwadi Shares and Finance, Mehta Equities, SMIFS, and Swastika Investment have assigned a 'subscribe' tag to the public issue. Afcons Infrastructure shares are also available in the grey market.
According to stock market observers, the company's shares are available at a premium of ₹ 25 in the grey market today. Afcons Infrastructure IPO GMP today As mentioned above, the Afcons Infrastructure IPO GMP (Grey Market Premium) today is ₹ 25, which is ₹ 7 higher than Monday's GMP of ₹ 18. According to stock market observers, this rise in grey market sentiments regarding the Afcons Infrastructure IPO can be attributed to the improved sentiments in the Indian stock market after the pullback rally on Monday.
They said that grey market sentiments may improve further if the domestic buyers remain net buyers on Tuesday. Afcons Infrastructure IPO subscription status After the two days of bidding, the public issue had been subscribed 0.36 times, the retail portion had been booked 0.
36 times, the NII segment had been subscribed 0.72 times, and the QIB segment had been subscribed 0.08 times.
Afcons Infrastructure IPO review Assigning a 'subscribe' tag to Afcons Infrastructure IPO, Anand Rathi says, "At the upper band, the company is valuing at 37.9x its FY24 earnings along with being valued at 46.3x if we annualize FY25 earnings.
Following the issuance of equity shares, the company's market capitalization stands at ₹ 1,70,261.8 million, with a market cap-to-sales ratio of 1.34 based on its FY24 earnings.
We believe the issue is fully priced and recommend a "Subscribe – Long Term" rating to the IPO." Geojit Securities has also given a 'subscribe' tag to the public issue: "At the upper price band of ₹ 463, AIL is trading at a P/E ratio of 38x for FY24, which is in line with its peers. With the government's initiatives aimed at infrastructure development, including increased budgetary allocations and rapid urbanization, AIL is strategically positioned for substantial growth.
It is considering its extensive experience in completing high-value and complex projects that offer better margins. Geographical diversification with operations across multiple sectors broadens their revenue base and mitigates risks. With a robust order book and a successful track record of project completion, we assign a "Subscribe" rating for medium- to long-term investment.
" BP Equities has also assigned a 'buy' tag to the book build issue: "The company is valued at a P/E ratio of 35.1x on the upper price band based on FY24 earnings, lower than the industry average P/E. Given its strong position in the market, the company is poised to capitalize on emerging market opportunities.
Therefore, we recommend a "SUBSCRIBE" rating for the issue from a medium to long-term perspective." Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint.
We advise investors to check with certified experts before taking any investment decisions..
