Afcons Infrastructure is a leading infrastructure engineering and construction company, part of the Shapoorji Pallonji Group, with over six decades of experience. The company specializes in executing complex and large-scale projects across various sectors, including marine, transport, urban infrastructure, and oil and gas. As of September 2023, Afcons boasts an extensive order book of ₹34,888 crore and has completed 76 projects in 15 countries. The upcoming IPO aims to raise ₹5,430.00 crore, comprising a fresh issue of ₹1,250 crore and an offer for sale of ₹4,180.00 crore, to support its capital expenditure and operational growth.
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₹463
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Expert Opinions
The Afcons Infrastructure IPO is generating positive market sentiment, driven by the company’s strong reputation in the infrastructure sector and its extensive project portfolio. Company strengths include a proven track record with 79 completed projects valued at ₹56,305 crore across 17 countries, showcasing its capability and experience.
However, potential risks and challenges involve the competitive landscape of the infrastructure industry and fluctuations in project funding, which could impact future growth. In terms of valuation analysis, the price band of ₹440 to ₹463 per share reflects a reasonable assessment of the company’s financial health, including a net profit of ₹449.76 crore for FY2024. The long-term investment perspective appears optimistic, as Afcons is well-positioned to benefit from increased government spending on infrastructure development, making it an attractive option for investors looking to capitalize on growth in this essential sector.
Investor Considerations
Investors considering the Afcons Infrastructure IPO should evaluate several key factors. The company performance and fundamentals are strong, with a notable net profit of ₹449.76 crore for FY2024, reflecting a steady growth trajectory. The sector outlook is favorable, supported by increased government spending on infrastructure projects, which positions Afcons to benefit from ongoing developments.
The IPO valuation, with a price band set between ₹440 and ₹463 per share, appears reasonable given the company’s historical performance and robust order book of ₹34,888 crore as of September 2023. Growth prospects are promising, bolstered by the company’s extensive experience in executing complex projects across multiple sectors, including transportation and urban infrastructure. However, potential risk factors include competition from established players and fluctuations in project funding. A long-term investment horizon is advisable, as Afcons Infrastructure is well-positioned to capitalize on the growing demand for infrastructure solutions in India, making it an attractive investment opportunity.
| Date | GMP | Trend |
|---|---|---|
| 31 Oct 2024 11.58 | ₹00 | --- |
| 30 Oct 2024 10.57 | ₹00 | Down |
| 29 Oct 2024 13.19 | ₹20 | Down |
| 28 Oct 2024 16.59 | ₹42 | Up |
| 27 Oct 2024 13.20 | ₹15 | --- |
| 26 Oct 2024 11.12 | ₹15 | Down |
| 25 Oct 2024 10.53 | ₹50 | Down |
| 24 Oct 2024 10.51 | ₹80 | Up |
| 23 Oct 2024 19.12 | ₹55 | Up |
| 22 Oct 2024 18.27 | ₹40 | Down |
| 21 Oct 2024 18.33 | ₹75 | --- |
FAQs
The Grey Market Premium showed limited accuracy in predicting Afcons Infrastructure’s listing performance. While the GMP of ₹0 suggested a flat listing at the issue price (₹463), the stock actually listed at a 7.99% discount. The prediction error of 7.99% indicates that although GMP correctly suggested weak market sentiment, it failed to anticipate the negative listing, demonstrating its limitations as a comprehensive price predictor in this case.
Afcons Infrastructure IPO Current GMP is ₹00.
Afcons Infrastructure IPO Expected Returns is 0.00%.
Afcons Infrastructure IPO estimated listing price is ₹463.