Afcons Infrastructure shares rise over 8% post listing. Should you buy, sell or hold?
Afcons Infrastructure surged 8.4% to Rs 461.7 on the NSE after their weak debut on the exchanges on Monday. The stock debuted at Rs 426 on the NSE, reflecting a discount of Rs 37 or 8% over the IPO price of Rs 463.
Meanwhile, the stock debuted 7% lower at Rs 430 on BSE.
«Afcons Infrastructure discount listing was in line with our expectations driven by market sentiments and lower than expected subscription. The subdued demand for IPO offer was mainly on the back of higher OFS by parent which is facing a challenging phase marked by significant debt and family business restructuring. The fund raised will help the parent better manage obligations, debt crisis in the other group companies. This objective was a hurdle for short term investors to bid aggressively,» said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
«Despite the listing below issue price, we remain optimistic on the business long term growth. 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 and Stable financial performance over the years along with a capable efficient management team to take the company to newer heights,» Tapse said.
«For allotted investors, we recommend holding it for the long term as we believe long term growth is intact with Govt focus on infrastructure growth. Short term traders and investors can hold/accumulate more on dips with a
