Afcons Infrastructure Share Price Surges After Discounted Listing: Should Investors Buy, Sell, or Hold?

A.Samad

4 months ago

Stock market today: After making a weak debut on the BSE and the NSE, Afcons Infrastructure’s share price witnessed strong buying interest among the Indian stock market bulls. Afcons Infrastructure’s share price is listed on the BSE at ₹430.05 apiece, whereas, on the NSE, it opened at ₹426 per equity share. However, the newly listed stock witnessed strong buying interest and climbed to an intraday high of ₹461.70 per share on the NSE.

According to stock market experts, Afcons Infrastructure’s share price is listed on the Indian stock market at around an 8 per cent discount, which aligns with market sentiments. They said that weak secondary market sentiments are one of the primary reasons for the discounted listing of Afcons Infrastructure shares. They reposed faith in Afcons Infrastructure shares for long-term investing.

Afcons Infrastructure share price outlook

Concerning the reasons for the weak listing of Afcons Infrastructure shares, Prashanth Tapse, Senior VPP — Research at Mehta Equities, said, “Afcons Infrastructure discount listing was in line with our expectations driven by market sentiments and lower than expected subscription. The subdued demand for IPO offers was mainly due to parents’ higher OFS, facing a challenging phase marked by significant debt and family business restructuring. The funds raised will help the parent better manage obligations and debt crises in the other group companies. This objective was a hurdle for short-term investors to bid aggressively.”

Asked about the outlook of Afcons Infrastructure shares, the Mehta Equities expert said, “Despite the listing below issue price, we remain optimistic about the business’s long-term growth. The long-term rationale to invest and hold is justified mainly on the back of a Healthy order book supporting its future growth, strong Track record of executing complex, challenging and unique EPC projects both within India and internationally, stable financial performance over the years, and a capable, efficient management team to take the company to newer heights.”

Advising long-term investors to hold the newly-listed stock, Shivani Nyati, Head of Wealth, Swastika Investment, said, “While the discounted listing may disappoint short-term investors, the IPO’s reasonable pricing, along with Afcons’ stable financial performance and project pipeline, offer potential long-term value. Investors with a long-term outlook may consider holding onto their shares, as the company’s fundamentals could drive gradual value appreciation once market conditions stabilize.”

For those who invested for listing gains, Prashanth Tapse said, “For allotted investors, we recommend holding it for the long term as we believe long-term growth is intact with A focus on infrastructure growth. Short-term traders and investors can hold/accumulate more on dips with a target of ₹480 to ₹500.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MDBot. We advise investors to check with certified experts before taking any investment decisions.