Afcons Infrastructure IPO: Check price band, issue details, key dates and more

Afcons Infrastructure Limited (AIL), an infrastructure engineering and construction company owned by the Shapoorji Pallonji Group, is set to launch its initial public offering (IPO) on October 25.

Price band and key dates for Afcons Infrastructure IPO

The price band for the IPO has been fixed in the range of ₹440 to ₹463 per equity share of the face value of ₹10.

The date of subscription for the IPO is scheduled for Friday, October 25, and will close on Tuesday, October 29, according to the red herring prospectus (RHP). The allocation of the IPO to the anchor investors is scheduled for Thursday, October 24.

Tentatively, the allotment of shares will be finalised on Wednesday, October 30, while the company will initiate refunds on Thursday, October 31. Moreover, the shares will be credited to the allottees’ demat accounts on the same day after the refund.

The shares of the company are likely to be listed on BSE and NSE on Monday, November 4.

Afcons Infrastructure Limited IPO details

The ₹5,430-crore initial public offering (IPO) of the company includes a fresh issue of shares worth ₹1,250 crore and an offer for sale (OFS) of up to ₹4,180 crore by promoter Goswami Infratech Private Limited.

The offer size has been decreased after a pre-IPO fundraising. The company had initially planned to raise ₹7,000 crore through the IPO, according to the draft papers released in March.

The promoters are Goswami Infratech, Shapoorji Pallonji and Company, Floreat Investments, Hermes Commerce and Renaissance Commerce, holding 99% of the shares of the company. The remaining 1% shares are owned by public shareholders.

The company will use ₹80 crore from the fresh issue proceeds to buy construction equipment and ₹320 crore for long-term working capital requirements.

Furthermore, it will allocate ₹600 crore for repaying debt, while the remaining amount will be used for general corporate purposes.

The book-running lead managers for the IPO are 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. Additionally, the registrar of the issue will be Link Intime India Private Ltd.

About Afcons Infrastructure Limited

Shapoorji Pallonji Group (SP Group) is a diversified Indian group founded in 1865. It has a leading presence in engineering & construction, infrastructure, real estate, water, energy and financial services sectors across the globe.

Afcons Infrastructure Limited has established itself as a leader in delivering complex and distinctive engineering, procurement, and construction (EPC) projects both in India and around the globe. As of June 30, 2024, the company is actively working on 65 projects across 12 countries and has a total order book value of ₹317.47 billion.

Expanding its international presence over the years, the company has many significant projects across Asia, Africa, and the Middle East. The company has undertaken many unique and challenging infrastructure projects, as highlighted in the Fitch Report.

According to the red herring prospectus (RHP), Afcons has several notable peers including Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL), and Dilip Buildcon Ltd (DBL).

Moreover, the company reported a 6% increase in revenue and a 9% rise in profit after tax (PAT) from the fiscal year ending March 31, 2023, to March 31, 2024, showing strong financial performance.