Afcons Infrastructure IPO Anchor Allocation at 36.35%

Afcons Infrastructure IPO saw a strong anchor allocation response, with 36.35% of the total IPO size subscribed by anchor investors. Out of 9,63,35,319 shares on offer, anchors picked up 3,50,21,597 shares, demonstrating robust market confidence. The anchor allocation details were reported to the stock exchanges on 24th October 2024, just ahead of the IPO opening on 25th October 2024.

The book-built issue of ₹5,430.00 crores comprises a fresh issue of 2.7 crore shares aggregating to ₹1,250.00 crores and an offer for sale of 9.03 crore shares aggregating to ₹4,180.00 crores. The price band is set at ₹440 to ₹463 per share, with a face value of ₹10 per share. This includes a share premium of ₹453 per share at the upper end of the price band.

The anchor allocation process, which took place on 24th October 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹463 per share, indicating robust demand and confidence in the company's prospects.
 

After the anchor allocation, the overall allocation of the Afcons Infrastructure IPO looks as follows:

Notably, the 3,50,21,597 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 38.79% before the anchor allocation to 2.44% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Afcons Infrastructure Limited IPO, the lock-in details are as follows: 

• Lock-in Period (50% Shares): 29th November 2024
• Lock-in Period (Remaining Shares): 28th January 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Afcons Infrastructure IPO 

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 24th October 2024, Afcons Infrastructure IPO completed the bidding for its anchor allocation. There was a robust response as 80 anchor investors participated in the book-building process. A total of 3,50,21,597 shares were allotted to these investors. The allocation was done at the upper IPO price band of ₹463 per share, resulting in an overall anchor allocation of ₹1,621.50 crore.

Out of the total allocation of 3,50,21,597 Equity Shares to the Anchor Investors, 1,17,10,136 Equity Shares (i.e., 33.44% of the total allocation to Anchor Investors) were allocated to 15 domestic mutual funds through a total of 31 schemes.

Key IPO Details: Afcons Infrastructure IPO

• IPO Size: ₹5,430.00 crores 
• Shares Allocated to Anchors: 3,50,21,597 
• Anchor Subscription Percentage: 36.35% 
• Listing Date: 4th November 2024 
• IPO Opening Date: 25th October 2024

Read more about Afcons Infrastructure IPO

About Afcons Infrastructure Limited and How to Apply 

Incorporated in 1959, Afcons Infrastructure Limited is an infrastructure engineering and construction company of the Shapoorji Pallonji group, with a legacy of over six decades. As of September 30, 2023, the company has completed 76 projects across 15 countries with a total historic executed contract value of ₹522.20 billion.

The company operates in five major infrastructure business verticals:

• Marine and industrial projects
• Surface transport projects
• Urban infrastructure projects
• Hydro and underground projects
• Oil and gas projects

As of September 30, 2023, the company has 67 active projects across 13 countries, totaling an order book of ₹348.88 billion.

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