Hey Wealthgainer.in, fellow investors! If you’re here, you’re likely curious about the upcoming Afcons Infrastructure IPO. With an issue size of ₹7,000 crores and a solid reputation in the infrastructure sector, it’s natural to want to deep knowledge into its shareholder quotas. So let’s start it in a way that’s super easy to understand for you!
What’s the Deal with the Afcons Infrastructure IPO?
Basic Overview
- Total Issue Size: 117,278,618 shares(aggregating up to ₹5,430.00 Cr)
- Fresh Issue: 26,997,840 shares(aggregating up to ₹1,250.00 Cr)
- Offer for Sale (OFS): 90,280,778 shares of ₹10(aggregating up to ₹4,180.00 Cr)
- Face Value: ₹10 per share
- Employee Discount: ₹ 44 per share
- Issue Type: Book Built Issue IPO
- Listing At: BSE, NSE
- Share holding pre issue: 340,738,269
- Share holding post issue: 367,736,109
The IPO is primarily a book-built issue, meaning that the price band are ₹440 to ₹463 per share and Minimum lot size are 32 Shares. This is where things can get a little interesting!
Afcons Infrastructure IPO Lot Size
| Application | Lots Shares | Shares | Amount |
| Retail (Min) | 1 | 32 | ₹14,816 |
| Retail (Max) | 13 | 416 | ₹192,608 |
| S-HNI (Min) | 14 | 448 | ₹207,424 |
| S-HNI (Max) | 67 | 2,144 | ₹992,672 |
| B-HNI (Min) | 68 | 2,176 | ₹1,007,488 |
Key Players in the Game
• Book Running Lead Managers:
- ICICI Securities Limited
- Dam Capital Advisors Ltd (Formerly IDFC Securities Ltd)
- Jefferies India Private Limited
- Nomura Financial Advisory and Securities (India) Pvt Ltd
- Nuvama Wealth Management Limited
- SBI Capital Markets Limited
Afcons Infrastructure IPO Tentative Dates
| IPO Open Date | Friday, October 25, 2024 |
| IPO Close Date | Tuesday, October 29, 2024 |
| Basis of Allotment | Wednesday, October 30, 2024 |
| Initiation of Refunds | Thursday, October 31, 2024 |
| Credit of Shares to Demat | Thursday, October 31, 2024 |
| Listing Date | Monday, November 04, 2024 |
| Cut-off time for UPI mandate confirmation | 5 Pm on Tuesday, October 29, 2024 |
• Registrar: Link Intime India Private Ltd
If you’re looking for detailed info, check out the Afcons Infrastructure IPO DRHP (Draft Red Herring Prospectus)!
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Understanding the Shareholder Quota
So, what exactly is the shareholder quota? It refers to the specific allocation of shares to different categories of investors during an IPO. This is crucial because it determines how much of the IPO you can get your hands on! That’s why keep on eye afcons infrastructure ipo shareholders quota
Afcons Infrastructure Shareholder Categories and Afcons Infrastructure Shareholder Quota
The Afcons Infrastructure IPO has allocated shares among various investor categories as follows:
| Investor Category | Shares Offered |
| QIB (Qualified Institutional Buyers) | Not more than 50% of the Net Issue |
| Retail Investors | Not less than 35% of the Net Issue |
| NII (Non-Institutional Investors) | Not less than 15% of the Net Issue |
Quick Note: Each category has a specific percentage of shares that they can apply for during the IPO. It’s a bit like dividing a pizza among friends; everyone gets a fair slice based on their appetite!
Breakdown of Investor Categories
1. Qualified Institutional Buyers (QIB)
- These include large institutions like mutual funds, pension funds, and foreign institutional investors.
- Quota: Up to 50% of the total issue.
- Why They Matter: QIBs usually bring a lot of credibility and stability to an IPO.
2. Retail Investors
- Everyday investors like you and me!
- Quota: Minimum 35% of the total issue.
- Why They Matter: Retail participation helps gauge the overall market sentiment.
3. Non-Institutional Investors (NII)
- High-net-worth individuals (HNIs) and other investors who do not fall under retail or QIB categories.
- Quota: Minimum 15% of the total issue.
- Why They Matter: They often bring in larger sums of money compared to retail investors.
Why Should You Care About Afcon IPO Shareholder Quota?
Understanding the afcons infrastructure limited ipo shareholder quota is important because it can significantly impact your chances of getting shares in the afcons Infrastructure IPO. Here are some reasons why you should keep an eye on it:
a] Allocation Matters
The percentage allocation gives you insight into how shares are distributed. If you’re a retail investor, knowing that at least 35% is set aside for you can make you feel more secure about applying!
b] Demand Signals
A larger quota for QIBs usually indicates strong institutional interest, which can be a good sign for retail investors.
c] Price Stability
Higher participation from institutional investors can lead to a more stable share price post-IPO, reducing volatility.
Afcons Infrastructure IPO GMP Today
Afcons IPO gmp is ₹505 (9.07%) on 04 November 2024.
Analyzing Afcons Infrastructure’s Potential
Company Background
Afcons Infrastructure Limited is part of the Shapoorji Pallonji Group and has been in the business for over six decades. With completed projects in 15 countries, they have a diverse portfolio that includes:
- Marine Projects: Ports, jetties, LNG tanks, etc.
- Surface Transport: Highways, railways, and interchanges.
- Urban Infrastructure: Metro works, bridges, and flyovers.
- Hydro Projects: Dams, tunnels, and irrigation.
- Oil and Gas: Offshore and onshore projects.
Competitive Strengths
- Track Record: Strong execution of complex, large-scale projects.
- Diverse Order Book: Spread across different geographies and sectors.
- Collaborative Approach: Effective teamwork leading to high execution capabilities.
Financial Performance of Afcons Infrastructure
Afcons has shown solid growth, with revenue increasing by 6% and profit after tax (PAT) rising by 9% in the past year. Here’s a quick glance at their financials:
| Financial Metrics | 31 Mar 2024 | 31 Mar 2023 |
| Assets | ₹16,233.64 Cr | ₹14,301.25 Cr |
| Revenue | ₹13,646.88 Cr | ₹12,844.09 Cr |
| Profit After Tax | ₹449.76 Cr | ₹410.86 Cr |
| Net Worth | 3,255.22 Cr | 2,653.75 Cr |
| Reserves and Surplus | 3,255.22 Cr | 2,653.75 Cr |
| Total Borrowing | ₹1,562.82 Cr | ₹1,555.20 Cr |
Objectives of the IPO
Afcons plans to use the proceeds for:
- Capital Expenditure: Purchasing construction equipment.
- Long-Term Working Capital: Keeping the cash flow healthy.
- Debt Repayment: Paying off some of its borrowings.
- General Corporate Purposes: To keep the business running smoothly.
How to Apply for Afcons Infrastructure IPO
If you’re excited about participating in this IPO, here’s a quick guide on how to apply:
1. Check Eligibility: Ensure you fall under one of the investor categories.
2. Open a Demat Account: If you haven’t already, this is essential for holding your shares.
3. Application Process:
- Fill out the IPO application form through your broker or online platform.
- Provide necessary details such as PAN, Demat account number, and bid amount.
- Submit the form along with payment (if applicable).
Is the Afcons Infrastructure IPO Worth It?
Pros:
- Strong Backing: Being part of the Shapoorji Pallonji Group adds a layer of credibility.
- Diverse Portfolio: Less reliance on a single project or sector.
- Growth Potential: With ongoing and future projects, there’s ample opportunity for growth.
Cons:
- Market Volatility: Like any IPO, share prices can be unpredictable post-listing.
- Debt Levels: While manageable, the company does have some borrowing.
Conclusion
So, is it a buy, hold, or avoid? That depends on your investment strategy and risk appetite. If you believe in the long-term potential of infrastructure development in India, this IPO might be worth considering. Just remember, always do your research and consult with a financial advisor if you’re unsure!
Final Thoughts
The Afcons Infrastructure IPO presents an interesting opportunity for investors. With clear shareholder quotas, a solid business model, and a promising financial outlook, it might just be the right time to know this investment. Keep an eye on the updates regarding price bands and dates, and get ready to make your move!
Remember, every investment comes with its risks, so tread carefully and make informed decisions. Happy investing!