Afcons Infrastructure IPO: From strengths and risks to financials, five key things to know

Afcons Infrastructure IPO: Strengths

• The company has a strong track record of carrying out large and complex projects. It has undertaken several 'first of its kind' infrastructure projects in India as well as worldwide.
• It primarily aims for large-value and complex projects, which provide better profit margins than less complex projects due to few competitors.
• Globally, Afcons Infrastructure is the tenth largest international marine and port facilities contractor, the 12th largest contractor in the bridges segment, the 18th largest contractor in the transmission lines and aqueducts segment and the 42nd largest contractor in the transportation segment on the basis of international revenue for FY23.
• It has a diversified order book.
• The company owns and maintains an extensive equipment base.
• It has robust risk management, project selection and dispute resolution processes.

Afcons Infrastructure IPO: Risks

• It is significantly dependent on projects by the government or government-related parties. Failure to bid for such projects could affect its business.
• Operates in a capital-intensive industry and has utilised working capital demand loans from banks worth ₹1,594 crore as of June 30, 2024.
• The company's finances may be impacted by the inability to collect trade receivables, which amounted to ₹3,974 crore as of June 30, 2024.
• International operations exposes the company to complex management, tax, legal, operation and economic risks, apart from exchange rate fluctuations.
• Some projects may be challenging due to difficult conditions such as rough weather, high altitudes, high seas, or rugged terrain.
• The employee attrition rate was 18%, 20%, and 19% in the financial year 2021-22 (FY22), FY23, and FY24, respectively.
• It faces competition from companies like Larsen & Toubro, Kalpataru Projects International, KEC International, Dilip Buildcon, and Tata Projects.

Afcons Infrastructure IPO: Financials

Afcons Infrastructure IPO: Lot size

Investors can bid for at least one lot size, consisting of 32 equity shares worth ₹14,080 and in multiples thereafter.

Half of the shares offered are reserved for qualified institutional buyers or QIBs, 35% for retail investors and 15% for non-institutional investors (NIIs).

Afcons Infrastructure IPO key dates: Allotment and listing date

After the subscription ends on October 29, the allotment finalisation will take place on October 30. The refunds for unsuccessful bidders will occur on October 31. For successful investors, shares will be credited to the Demat account on the same day. Afcons Infrastructure IPO listing date is November 4.