Afcons Infra Shares Gain After Rs 1,080-Crore Order Win From Defence Ministry
Afcons' stock rose as much as 6.6% during the day to Rs 570 apiece on the NSE.
Shares of Afcons Infrastructure Ltd. surged over 6% after the company bagged an order worth Rs 1,080 crore from the Defence Research & Development Organisation.
The civil construction firm received a letter of intent from the Ministry of Defence for the execution of work related to the augmentation of MTC, the creation of SAF, and workshop equipment for the ship lift facility at Visakhapatnam.
The contract will be executed within 36 months, the company said in an exchange filing on Friday.
The recently listed company made a tepid debut on the stock exchanges. The Rs 5,430 crore initial public offering of the infrastructure firm was subscribed 2.63 times on the final day of bidding led by non-institutional investors.
The infrastructure firm aims to utilise the net proceeds received from the fresh issue towards funding long-term working capital requirements, repaying certain outstanding borrowings and for other general corporate activities.
The company has completed projects in more than 25 countries across Asia, Africa, and the Middle East. Its work includes building large structures with creative designs and full construction services. The firm has also delivered over 350 infrastructure projects.
Afcons' stock rose as much as 6.6% during the day to Rs 570 apiece on the NSE. It was trading 2.2% higher at Rs 545.4 apiece, compared to a 0.34% decline in the benchmark Nifty 50 as of 1:37 a.m.
It has risen 15% since its listing on the Nov. 4. The total traded volume so far in the day stood at 2.7 times its 30-day average. The relative strength index was at 60.
Two analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 13.8%.
