Afcons IPO Sees Moderate Start Amid Strong Anchor Support

Afcons Infrastructure Ltd's IPO opened to a 10% subscription rate on its first day, with strong backing from anchor investors having raised Rs 1,621 crore. The IPO, priced between Rs 440-463 per share, will use proceeds for equipment purchase, debt repayment, and working capital needs.

The initial public offering (IPO) of Shapoorji Pallonji Group's prominent construction subsidiary, Afcons Infrastructure Ltd, opened to lukewarm investor participation with just 10% subscription on the first day.

According to NSE data, the IPO saw bids for 85,94,016 shares compared to the 8,66,19,950 shares available. Interestingly, retail individual investors subscribed 14%, while non-institutional investors took up 11%, and qualified institutional buyers showed minimal interest at 1%.

The sale, valued at Rs 5,430 crore, comprises a mixture of fresh shares worth Rs 1,250 crore and an offer for sale of up to Rs 4,180 crore by Goswami Infratech Private Limited. The proposed fund use includes Rs 80 crore for construction equipment, Rs 320 crore for long-term capital, Rs 600 crore towards debt repayment, and other corporate expenditures.

(With inputs from agencies.)