Shapoorji Pallonji Group’s Afcons Infrastructure to Launch ₹5,430 Crore IPO on October 25

Funds to Fuel Expansion, Debt Reduction, and Strengthen Afcons’ Global Infrastructure Portfolio

• IPO Details: The ₹5,430 crore IPO includes a fresh issue of ₹1,250 crore and an offer for sale of ₹4,180 crore, with a price band set at ₹440-₹463 per share. The IPO will open on October 25 and close on October 29.
• Fund Utilization: Proceeds will be allocated towards capital expenditure, long-term working capital needs, debt repayment, and general corporate purposes. Shares are expected to list on the BSE and NSE on November 4.
• Company Strength: As part of the Shapoorji Pallonji Group, Afcons has a strong track record in infrastructure projects across 22 countries, generating 30% of revenue from exports and earning recognition for iconic projects like the Chenab Railway Bridge and the Atal Tunnel.

BILKULONLINE

Ahmedabad, Oct 22: Afcons Infrastructure IPO is set to launch with a book-built issue of ₹5,430 crores. The issue is a combination of fresh issue and offer for sale.

Here are the key details of the IPO: The IPO opens for subscription on 25th October 2024 and closes on 29th October 2024. The company is a flagship infrastructure, engineering and construction company of the Shapoorji Pallonji Group. It is a well-diversified infrastructure company having on an average 30% export revenues. The company posted steady growth in its top and bottom lines for the reported periods.

The IPO consists of a fresh issue of 2.7 crore shares worth ₹1,250 crore and an offer for sale (OFS) of 9.03 crore shares aggregating to ₹4,180 crore. The price band is set between ₹440 and ₹463 per share, with a minimum market lot of 32 shares. The subscription window will close on October 29, with share allotment finalized by October 30, and listing scheduled on November 4 on the BSE and NSE. Purpose: Funding Growth and Debt Reduction.

The raised funds will be used for various objectives, including capital expenditure to acquire construction equipment, long-term working capital requirements, repayment or prepayment of certain borrowings, and general corporate purposes. At the upper price band, retail investors will need a minimum investment of ₹14,816 for 32 shares, while Small Non-Institutional Investors (sNII) will have a minimum lot size of 448 shares amounting to ₹207,424. For Big Non-Institutional Investors (bNII), the minimum lot size will be 2,176 shares, totaling ₹1,007,488.

Company Background and Achievements

Founded in 1959 and becoming a public limited company in 1976, Afcons Infrastructure is headquartered at Afcons House, 16 Shah Industrial Estate, Veera Desai Road, Andheri (West), Mumbai, Maharashtra.

 It is India’s second-largest engineering and construction group and has completed over 150 projects across 22 countries, including major infrastructure projects in Asia, Africa, and the Middle East. Notable achievements include the Chenab Railway Bridge, the world’s tallest single-arch railway bridge, and the Atal Tunnel, the world’s longest highway tunnel above 3,000 meters. Recently, Afcons secured a $530 million project in the Maldives, funded by the Exim Bank of India under an Indian grant and Line of Credit (LOC).

Leadership and Investor Sentiment

The company is led by a distinguished board, including Shapoor Pallonji Mistry as Chairman, Subramanian Krishnamurthy as Executive Vice Chairman, and Paramasivan Srinivasan as Managing Director. Other members include Giridhar Rajagopalan, Deputy Managing Director, Umesh Narain Khanna, Non-Executive Director, and board members Anurag Kumar Sachan, Sitaram Janardan Kunte, and Rukhshana Jina Mistry.

Afcons has consistently demonstrated its growth, with 30% of its revenue from exports, and has been awarded the MIKE (Most Innovative Knowledge Enterprise) award multiple times for its knowledge management practices. The Grey Market Premium (GMP) is currently at ₹70, indicating positive investor sentiment ahead of the IPO.

Subramanian Krishnamurthy, along with Paramasivan Srinivasan and Hitesh Singh, Head of Corporate Strategy, and Ramesh Jha, CFO, participated in a media interaction in Ahmedabad on Tuesday. They were joined by Nithin Kanuganti, representing SBI Capital Markets Ltd. During the event, Hitesh Singh delivered a corporate presentation, which was followed by a question-and-answer session.

Disclaimer: This IPO news report is for informational purposes only and does not constitute financial or investment advice.

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