Afcons Infrastructure IPO

About Afcons Infrastructure Limited Afcons Infrastructure Limited began its operations as a civil construction firm in 1959 and was registered as a partnership firm between the Rodio Foundation Engineering Limited, Switzerland and Hazarat & Company, India in 1961. Now it is one of India’s largest international infrastructure companies, a flagship of the Shapoorji Pallonji group, a diversified Indian conglomerate. Its business verticals cater to marine and industrial infrastructure such as ports and jetties, surface transport like highways and roads, urban infrastructure like metros and flyovers, hydro and underground construction like dams and tunnels, and oil and gas projects. In the last ten fiscals up till 30 September 2023, it has completed 76 projects across 15 countries and has 67 active projects across 13 countries, aggregating to an order book of ₹348.88 billion. Some of its projects include the Chenab bridge in Jammu and Kashmir, the Atal tunnel in Rohtang, Himachal Pradesh, the MG Setu Bridge in Patna, Bihar, the Zambia – Lusaka City Decongestion Project in Lusaka, Zambia, and the Male to Thilafushi Link Project in Maldives. It won the Outstanding Global MIKE Award in 2023 and was accorded the status of Five Star Export House in accordance with the provisions of the Foreign Trade Policy 2023 by the Indian government. It benefits from the strong parentage of the Shapoorji Pallonji Group, with a legacy of over 150 years and can access its network to enable strategic collaborations, business development opportunities and knowledge sharing. Between FY21 and FY23, it saw a CAGR rise of 10% in its revenue from operations and 34% in its profit. Moreover, the Indian infrastructure industry is expected to grow at a CAGR of 9% between FY23 to FY28, which could benefit the company. And now, Afcons Infrastructure Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹7,000 crore, comprising fresh issue, aggregating to ₹1,250 crore, as well as an offer for sale, aggregating to ₹5,750 crore. The money raised from the fresh issue will be utilised to purchase construction equipment, fund long term working capital requirements, prepay borrowings, and for general corporate purposes. Its shares will be listed on the NSE and BSE. Here are key details about the Afcons Infrastructure IPO: Company Name Afcons Infrastructure Limited Company Type Private Company Established On 1959 Afcons Infrastructure Limited IPO Opening Date TBA Afcons Infrastructure Limited IPO Closing Date TBA Afcons Infrastructure Limited IPO Allotment Status TBA Credit of Shares to the Demat Account TBA Afcons Infrastructure Limited IPO Listing Date TBA Afcons Infrastructure Limited IPO Face Value ₹ 10 per share Afcons Infrastructure Limited IPO Lot Size TBA Afcons Infrastructure Limited IPO Issue Size Approx ₹7,000 crore Afcons Infrastructure Limited IPO to be Listed on BSE, NSE Afcons Infrastructure Limited IPO Price band TBA Financial snapshot Particulars FY21 FY22 FY23 Revenue ₹ 9,375 crore ₹ 11,018 crore ₹ 12,637 crore Net Profit ₹ 169 crore ₹357 crore ₹ 410 crore Here’s a quick look at Afcons Infrastructure Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis) Strengths and opportunities Strong track record of execution of large and complex projects as it has undertaken many ‘first of its kind’ infrastructure projects in India and the rest of the world. Globally, it is the 10th largest international marine and port facilities contractor, the 12th largest contractor in the bridges segment, the 42nd largest contractor in the transportation segment and the 18th largest contractor in the transmission lines and aqueducts segment, based on International Revenue for FY23. Diversified order book across different business verticals, geographies, and clients. Owns and maintains a large equipment base including 10 marine barges, 133 cranes, 16 tunnel boring machines, eight large capacity jack ups, and 20 piling rigs as of 30 September 2023, allowing it strong execution capabilities. Knowledge management and innovation practices which have received recognition through the MAKE (Most Admired Knowledge Enterprise) and MIKE (Most Innovative Knowledge Enterprise) awards over the last several years. Strong risk management, project selection and dispute resolution processes. Risks and threats Significantly dependent on projects awarded by government or government-owned customers and an inability to bid for such projects might affect its business. Operates a capital intensive business and has utilized working capital demand loans from banks amounting to ₹1,390 crore as of 30 September 2023. Inability to collect trade receivables, which amounted to ₹2,106 crore as of 30 September 2023, might affect its financials. International operations expose it to complex management, legal, tax, operational and economic risks, and exchange rate fluctuations. Faces increased execution risks as its projects are executed in difficult conditions, such as rough weather conditions, high seas, high altitudes or rugged terrains. Had an employee attrition rate of 10%, 18%, and 20% in FY21, FY22, and FY23, respectively. Business is subject to fluctuations due to seasonal, climatic and other factors. Afcons Infrastructure Limited IPO details | Afcons Infrastructure Limited IPO date According to the offer document filed by the company with the SEBI, the Afcons Infrastructure IPO’s opening date – in other words, the Afcons Infrastructure IPO launch date – will be 2024. The Afcons Infrastructure IPO closing date is 2024. After this, investors will be updated about the allotment status on 2024. Investors who have been allotted shares can expect them to be credited to their demat account on 2024. The Afcons Infrastructure IPO listing date is 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. | Afcons Infrastructure Limited IPO Price Band The IPO is a fresh issue and an offer for sale. The Afcons Infrastructure IPO price band has been set between ₹ and ₹ per share. Interested investors can choose a price within this band to apply for the IPO. The Afcons Infrastructure IPO listing price will be determined on 2024. The listing price is the price at which a company’s shares debut on the stock exchanges. | Afcons Infrastructure Limited IPO Lot size The Afcons Infrastructure IPO details have been declared. The Afcons Infrastructure IPO lot size is set at shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Afcons Infrastructure IPO issue size is approx ₹7,000 crore. How to pre-apply for the Afcons Infrastructure Limited IPO? You can pre-apply for the Afcons Infrastructure Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘Afcons Infrastructure Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Pre-Apply’ Accept the mandate on your UPI app How to apply for the Afcons Infrastructure Limited IPO? If you are interested in this investment opportunity but unsure how to apply for the Afcons Infrastructure Limited IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Afcons Infrastructure Limited IPO on Upstox: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘Afcons Infrastructure Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Apply’ Accept the mandate on your UPI app How to check the Afcons Infrastructure Limited IPO allotment status? When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the Afcons Infrastructure Limited IPO allotment status: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover page, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, you will find the ‘View all’ option Once you click on ‘View all’, you will be directed to the ‘IPO’ tab In the ‘IPO’ tab, click on ‘My applications’ In ‘My applications’, under the History section, your Afcons Infrastructure Limited IPO allotment status will be mentioned Check Allotment Status Open a demat account with Upstox to apply for the Afcons Infrastructure Limited IPO To apply for the Afcons Infrastructure Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: Click here to visit the demat account opening page on the Upstox website. Enter your phone number and other essential details to begin opening a demat account. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? Open Demat Account Upstox – trading app to apply for the Afcons Infrastructure Limited IPO Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the Afcons Infrastructure Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.