Afcons Infrastructure IPO

About Afcons Infrastructure IPO

Afcons Infrastructure IPO is a major upcoming offering in the Indian stock market, with a total issue size of ₹5,430 crore. The IPO comprises a fresh issue of 2.7 crore shares, raising ₹1,250 crore, and an offer for sale (OFS) of 9.03 crore shares, worth ₹4,180 crore. This book-built issue is designed to raise capital for the company’s growth, and part of the proceeds from the fresh issue will likely be used for debt repayment and other corporate purposes.

The IPO opens for subscription on October 25, 2024, and will close on October 29, 2024, giving investors 5 days to apply. The price band is set between ₹440 and ₹463 per share. Investors can apply in a minimum lot size of 32 shares, requiring a minimum retail investment of ₹14,816. For non-institutional investors (sNII), the minimum application is for 14 lots (448 shares), amounting to ₹2,07,424, while for bNII, the minimum application is for 68 lots (2,176 shares), totaling ₹1,007,488.

The IPO allotment is expected to be finalised on October 30, 2024, and the shares will be listed on BSE and NSE on November 4, 2024. The lead managers for this IPO include top investment banks such as ICICI Securities, Dam Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets. The registrar for the IPO is Link Intime India Private Ltd, ensuring a smooth process for all investor applications.

Afcons Infrastructure is a well-established player in the construction and infrastructure sector, involved in large-scale projects like bridges, tunnels, and marine works. With its strong reputation and expertise in handling high-value projects, the company aims to utilise the IPO proceeds to strengthen its financial position and expand its project portfolio. Investors with an interest in the infrastructure sector may find this IPO an attractive opportunity to gain exposure to a prominent company in the industry.

Industry Outlook:

1. India's infrastructure industry grew at a CAGR of 11.4%, increasing from ₹5,041.1 billion in FY 2018 to ₹7,750.6 billion in FY 2022.
2. With India's push for foreign direct investment in infrastructure and manufacturing, the Indian construction sector is expected to grow at a CAGR of 9.5% to 10%, reaching ₹38.5 trillion by FY28.
3. The Central Government's capital expenditure increased from ₹4.1 trillion in FY21 to ₹11.1 trillion by FY25. This sharp increase in infrastructure outlay enhances demand for projects in sectors like roads, railways, and housing.

Afcons Infrastructure IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. Capital expenditure towards the purchase of construction equipment.
2. Funding long-term working capital requirements.
3. Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the company.
4. General corporate purposes

About Afcons Infrastructure Limited

Afcons Infrastructure Limited, the premier engineering and construction entity of the Shapoorji Pallonji Group, boasts over six decades of expertise in executing a wide array of complex and unique EPC projects both in India and internationally. Recognised as one of India’s largest international infrastructure companies by the 2023 ENR (Engineering News-Record, US) Top International Contractors rankings, Afcons has a significant global presence, especially in Asia, Africa, and the Middle East.

Over the last 10 financial years up to September 30, 2023, Afcons successfully completed 76 projects across 15 countries, with a historic executed contract value of ₹522.20 billion. As of the same date, the company is managing 67 active projects across 13 countries, with an order book worth ₹348.88 billion. Notable projects include the Chenab Bridge, the world’s tallest single-arch railway bridge, and the Atal Tunnel, the world’s longest highway tunnel above 3,000 metres.

Afcons distinguishes itself in various infrastructure domains including marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas. Its commitment to excellence is underscored by multiple awards, including the prestigious MIKE (Most Innovative Knowledge Enterprise) award from 2018 to 2023 at both the India and Global levels.

Peer Details

According to RHP, The following are the listed peers of Afcons Infrastructure Limited:

1. Larsen & Toubro Limited
2. KEC International Limited
3. Kalpataru Project International Limited
4. Dilip Buildcon Limited

How to Check the Allotment Status of the Afcons Infrastructure Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app
2. Go to the individual order details page of the IPO that you had applied for.
3. Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email and SMS.

How to apply for Afcons Infrastructure IPO online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Afcons Infrastructure IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Afcons Infrastructure Limited IPO

• Registered office: Afcons House, 16 Shah Industrial Estate, Veera Desai Road, Andheri (West), Mumbai, Maharashtra, 400053, India
• Phone: 022 6719 1214
• E-mail:gaurang@afcons.com