Afcons Infra shares debut at 8% discount to issue price; catch latest updates here

Shares of Afcons Infrastructure, the flagship infrastructure and construction arm of the Shapoorji Pallonji Group, opened lower on the stock exchanges today. The stock was listed at Rs 426 on the NSE, marking an 8 per cent drop from its IPO price of Rs 463, while on the BSE, it started trading at Rs 430.05, reflecting a 7 per cent discount.

The IPO saw strong demand from institutional investors, helping it close with an overall subscription of 2.63 times. However, the retail segment fell slightly short, with a subscription rate of 0.94 times, indicating 94 per cent participation. The Qualified Institutional Buyer (QIB) category was subscribed 3.79 times, while non-institutional investors (NIIs) and employees subscribed at 5.05 times and 1.67 times, respectively.

The Rs 5,430-crore offering included a fresh issue of Rs 1,250 crore and an offer-for-sale of Rs 4,180 crore from the promoters. The company raised Rs 1,621 crore ahead of the IPO through anchor investors, distributing 3.5 crore shares at Rs 463 per share. Notable institutions like GIC, HDFC MF, ICICI Pru AMC, and BlackRock, among others, participated in the anchor round, collectively securing around a third of the anchor book size.

Afcons plans to allocate Rs 80 crore from the fresh issue towards capital expenditure for new construction equipment. Another Rs 320 crore is set aside to fund its long-term working capital requirements, while Rs 600 crore will be used to repay or prepay part of its outstanding debt. The remainder will be directed toward general corporate expenses, strengthening Afcons' financial stability and project capacity.

Afcons Infrastructure operates in five key segments: Marine and Industrial, Surface Transport, Urban Infrastructure, Hydro and Underground, and Oil and Gas. The Marine and Industrial division focuses on large-scale port and LNG infrastructure, while Surface Transport addresses highway and railway projects. Urban Infrastructure covers metro construction and bridges, and Hydro and Underground specializes in dam and tunnel construction. Finally, the Oil and Gas segment handles offshore and onshore projects, underscoring Afcons' diverse capabilities across India's infrastructure landscape.

The IPO marks a significant milestone for Afcons as it seeks to enhance its project portfolio, strengthen its financial footing, and scale operations across its various infrastructure domains.