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The initial public offering (IPO) of Afcons Infrastructure Ltd, a flagship infrastructure engineering and construction firm owned by the Shapoorji Pallonji Group, opened with a modest 10% subscription on its first day. This initial response came primarily from Retail Individual Investors (RIIs), who contributed 14% of the total subscription. However, the overall subscription remained low, indicating cautious investor sentiment towards the IPO.
The IPO, aiming to raise a total of Rs 5,430 crore, comprises a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 4,180 crore by promoter Goswami Infratech Private Limited. The price band for the IPO has been fixed at Rs 440-463 per share, with the IPO open for subscription from October 25 to October 29. The company plans to utilize the proceeds from the fresh issue for various purposes, including buying construction equipment, funding long-term working capital, repaying debt, and for general corporate purposes.
While the IPO received lukewarm initial response, the performance over the remaining days of the subscription period will be crucial in determining the success of the IPO. Investor confidence in the company's future prospects, the overall market sentiment, and the performance of the IPO in comparison to other concurrent offerings will all play a significant role in influencing the final outcome.