Afcons Infrastructure IPO to open on October 25; Check all details here

The initial public offering (IPO) of Afcons Infrastructure opens for bidding on Friday, October 25 and the three day bidding for the issue shall conclude on Tuesday, October 29. The company will be offering its shares in the fixed price band of Rs 440-463 apiece, which can be applied for a minimum of 32 equity shares and multiples thereafter.

Incorporated in 1959, Afcons Infrastructure is an infrastructure engineering and construction company of the Shapoorji Pallonji group, with a legacy of over six decades. It has verticals like marine and industrial projects; surface transport projects; urban infrastructure projects; Hydro and underground projects; and oil & gas projects.

The Rs 5,340 crore IPO of Afcons Infrastructure includes a fresh share sale of Rs 1,250 crore and an offer-for-sale (OFS) of up to Rs 4,180 crore by its promoter Goswami Infratech. The anchor book for the issue opens on Thursday, October 24.

The net proceeds from the issue shall be utilized towards capital expenditure for purchase of construction equipment; funding long term working capital requirements; prepayment of certain outstanding borrowings; and general corporate purpose

Afcons Infra raised Rs 2,967 crore from a number of investors. The pre-IPO book included names like GIC Singapore, Enam Holdings (Akash Bhanshali), Synergy Capital, 360 One, M&G Investments, Think Investments, Discovery Capital Management, Artian Investment from ArcelorMittal, Madhusudan Kela, White Oak and more.

Afcons Infra has 67 active projects across 13 countries, totaling an order book of Rs 34,888 crore as of September 30, 2023. The company is globally present in Asia, Africa and Middle East. The company has completed 76 projects across 15 countries with a total historic executed contract value of Rs 52,220 crore.

For the quarter ended on June 30, 2024, the company reported a net profit of Rs 91.59 crore with a revenue of Rs 3,213.47 crore. The company clocked a net profit of Rs 449.76 crore with a revenue of Rs 13,646.88 crore for the financial year ended on March 31, 2024.

Afcon Infrastructure has reserved shares worth Rs 25 crore for the eligible employees of the company, who will get a discount of Rs 44 per share. Of the balance issue, 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) have 15 per cent of the allocation. Retail investors will get the remaining 35 per cent.

ICICI Securities, DAM Capital Advisors (formerly IDFC Securities), Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management and SBI Capital Markets are the book running lead managers of the Afcons Infra IPO, while Link Intime India is the registrar for the issue. Shares of company shall be listed on both BSE & NSE on Monday, November 4.