Afcons Infrastructure IPO Gets SEBI Nod For Raising ₹7,000 Crore

Afcons Infrastructure Limited, a prominent player in the Indian infrastructure sector, has secured the green light from the Securities and Exchange Board of India (SEBI) for its much-anticipated initial public offering (IPO). The company, backed by the renowned Shapoorji Pallonji Group, is set to raise a substantial ₹7,000 crore through this offering.

The IPO will comprise a fresh issue of ₹1,250 crore and an offer for sale of up to ₹5,750 crore by Goswami Infratech Private Limited, a Shapoorji Pallonji-owned investment firm. A portion of the shares will be reserved for eligible employees.

The proceeds from the fresh issue will be utilised to bolster the company’s operations, including the purchase of construction equipment, working capital management, repayment of borrowings, and general corporate purposes.

With a diverse portfolio encompassing marine and industrial projects, surface transport, urban infrastructure, hydro and underground projects, and oil and gas, Afcons Infrastructure has demonstrated a strong track record of execution. The company’s order book has witnessed a significant increase, growing from ₹26,248.46 crore in fiscal 2021 to ₹34,888.39 crore as of September 30, 2023.

Financially, Afcons has exhibited consistent growth. In fiscal year 2023, the company reported a 14.69% increase in revenue to ₹12,637.38 crore, accompanied by a 14.89% rise in profit after tax to ₹410.86 crore. The positive momentum continued in the first half of fiscal 2024, with revenue reaching ₹6,505.39 crore and profit after tax standing at ₹195.13 crore.

A consortium of leading investment banks, including ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets, has been appointed as the lead managers for the IPO. Link Intime India will act as the registrar for the offering.

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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.