The listing ceremony of the shares of Afcons Infrastructure took place on the National Stock Exchange.
Shares of Afcons Infrastructure Ltd listed today (November 4) at ₹426, down 8% from the issue price on the National Stock Exchange (NSE). The shares listed at ₹430.05, down 7.12% from the issue price on the Bombay Stock Exchange (BSE). The company had kept the upper issue price of the IPO at ₹463 per share.
The IPO of Afcons Infrastructure, a company working in transport, construction, oil and gas sectors, was open for bidding from October 25 to October 29. The IPO was subscribed a total of 2.77 times in three trading days. It was subscribed 0.99 times in the retail category, 3.99 times in the Qualified Institutional Buyers (QIB) and 5.31 times in the Non-Institutional Investors (NII) category.
Afcons Infrastructure issue was worth ₹5,430 crore
This issue total of Afcons Infrastructure was ₹5,430 crore. For this, the company issued 90,280,778 fresh shares worth ₹4,180 crore. Whereas, the existing investors of the company sold 26,997,840 shares worth ₹1,250 crore through Offer for Sale i.e. OFS.
Retail investors could bid for maximum 416 shares
Afcons Infrastructure Limited had fixed the price band of this issue at Rs 440 to Rs 463 per share. Retail investors could bid for a minimum of one lot i.e. 32 shares.
If you had applied for one lot at the upper price band of IPO at Rs 463, you would have had to pay Rs 14,816.
At the same time, retail investors could apply for a maximum of 13 lots i.e. 416 shares. For this, investors would have to invest Rs 1,92,608 as per the upper price band.
35% of the issue was reserved for retail investors
The company had reserved 50% of the issue for Qualified Institutional Buyers (QIB). Apart from this, 35% share was reserved for retail investors and the remaining 15% share was reserved for non-institutional investors (NII).
Afcon will spend Rs 600 crore for corporate purposes
Of the funds raised from the fresh issue, up to Rs 80 crore will be used to purchase construction equipment, Rs 320 crore to fund working capital requirements and prepayment or scheduled repayment of a part of certain outstanding borrowings taken by the company and Rs 600 crore for general corporate purposes. Crore rupees will be spent.
Afcon operates five major infrastructure businesses:
- Marine and Industrial- This includes projects like Ports, Harbours, Dry Docks, LNG Tanks and Material Handling Systems.
- Surface transport – This includes highways, interchanges, mining infrastructure and railways.
- Urban Infrastructure- This includes metro works, bridges, flyovers and elevated corridors.
- Hydro and underground projects- This includes dams, tunnels, and water related projects.
- Oil and Gas- This includes offshore and onshore projects in the oil and gas sector.
AIL's operating revenue in FY 2023 Rs 13,267.50 crore
AIL's operating revenue is expected to increase from Rs 12,637.38 crore in FY 2023 to Rs 13,267.50 crore in FY 2024. During this period, the company's profit after tax stood at Rs 449.74 crore, which was Rs 410.86 crore in FY 2023.
According to the Fitch report, among the big infrastructure companies of the country, Afcon is at the top in terms of Return on Capital Employed (ROCE) i.e. return against cost and EBITDA margin. According to the data of financial year 2024, the company is on top in terms of Return on Equity (ROE) and Profit After Tax (PAT).
The company's operating revenue for the quarter ending June 30, 2024 was Rs 3,154.36 crore and profit after tax was Rs 91.59 crore. According to the data till June 30, 2024, Afcon Infrastructure's order book stands at Rs 31,747.43 crore.
What is IPO?
When a company issues its shares to the general public for the first time, it is called Initial Public Offering i.e. IPO. The company needs money to expand its business. In such a situation, instead of taking loan from the market, the company raises money by selling some shares to the public or issuing new shares. For this the company brings IPO.
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