Afcons Infrastructure Faces a Shaky Market Debut: A Drop from IPO Price

Afcons Infrastructure Ltd, a flagship of Shapoorji Pallonji Group, experienced an 8% decrease in its share value during its market debut on Monday, against an issue price of Rs 463. The company's IPO was fully subscribed with a 2.63 times subscription rate, raising Rs 5,430 crore.

Shares of Shapoorji Pallonji Group's flagship company, Afcons Infrastructure Ltd, took a hit on Monday with an 8% discount listing compared to its IPO price of Rs 463. Making its entrance at Rs 430.05 on the BSE, it saw further decline to Rs 419.85, a 9.31% drop from its initial price.

At the NSE, the shares began trading at Rs 426, marking a 7.99% decrease. Despite the rocky start, Afcons' initial public offer had already shown strong investor interest, being fully subscribed 2.63 times by the close of the sale.

With a fundraising total of Rs 5,430 crore, the IPO consisted of a fresh share issue worth Rs 1,250 crore and an Offer-for-Sale (OFS) by promoter Goswami Infratech Pvt Ltd. Plans for the fresh issue proceeds include construction equipment purchase, long-term working capital support, and debt repayment.

(With inputs from agencies.)