Shapoorji Pallonji Group's Afcons Infra to float ₹5,430 crore IPO on Oct 25

Shapoorji Pallonji Group's infrastructure engineering and construction company Afcons Infrastructure Ltd (AIL) is gearing up to launch its ₹5,430-crore initial public offering (IPO) on October 25.

The initial share sale will conclude on October 29 and the bidding for anchor investors will open for a day on October 24, according to the red herring prospectus (RHP).

The company will announce the price band for the IPO next week. The infrastructure firm's ₹5,430-crore IPO is a combination of 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 reduced following a pre-IPO fundraising. In the March draft papers, the company had initially planned to raise ₹7,000 crore through the initial share sale.

Currently, promoter and promoter group entities own a 99% stake in Maharashtra-based Afcons Infrastructure. The company will utilise ₹80 crore from the fresh issue proceeds to buy construction equipment, ₹320 crore for long-term working capital, ₹600 crore to repay debt, and the rest for general corporate purposes.

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

In terms of listed industry peers, Afcons compares itself with Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL), and Dilip Buildcon Ltd( DBL).

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 are the book-running lead managers to the issue.