Afcons Infrastructure Rs 5,430-cr IPO to open on 25th Oct 2024

Established in 1865, the Shapoorji Pallonji Group (SP Group) is a multifaceted enterprise that holds a notable position in the worldwide domains of engineering and construction, infrastructure, real estate, water, energy, and financial services. Mumbai is home to the international engineering and construction firm Afcons Infrastructure Limited. The company builds roads, ports, bridges, flyovers, metros, tunnels, pipelines, barrages, and oil and gas projects, among other infrastructure projects. It also offers EPC services. Afcons assesses itself against its peers in the listed industry, namely Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL), and Dilip Buildcon Ltd (DBL).

SP Group owns AIL files for Rs. 5430 crore IPO

The Shapoorji Pallonji Group owns Afcons Infrastructure Ltd. (AIL), a company that specializes in infrastructure engineering and construction. On October 25, the company will begin its Rs 5,430-crore initial public offering (IPO). The first share sale will conclude on October 29. The bidding for anchor investors will begin on October 24 and run for one day, according to the red herring prospectus (RHP).

Goswami Infratech Private Limited goes for OFS

The next week, the company will reveal the IPO price range. The infrastructure company’s Rs 5,430-crore initial public offering (IPO) consists of an offer for sale (OFS) by promoter Goswami Infratech Private Limited for up to Rs 4,180 crore and a new issue of shares valued at Rs 1,250 crore.

Reserve running managers for the initial public offering

The size of the offer was decreased as a result of a pre-IPO fundraising effort. According to the March draft papers, the company had initially planned to raise Rs 7,000 crore through the initial share sale. ICICI Securities Ltd., DAM Capital Advisors Ltd., Jefferies India Private Ltd., Nomura Financial Advisory and Securities (India) Private Ltd., Nuvama Wealth Management Ltd., and SBI Capital Markets Ltd. are the issue’s lead book-running managers.

99% of the company is held by promoters

The promoter and promoter group entities currently own 99% of the Maharashtra-based Afcons Infrastructure. The company intends to allocate Rs 80 crore of the proceeds from the fresh issue towards the purchase of construction equipment, Rs 320 crore towards long-term working capital, Rs 600 crore towards debt repayment, and the remaining amount towards general corporate purposes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.