Afcons Infrastructure Limited’s IPO Details:
- Fundraising: The company plans to raise Rs 7,000 crore through an IPO.
- Composition of Issue: The IPO will consist of a fresh issue of shares worth Rs 1,250 crore and an offer for sale of up to Rs 5,750 crore by Goswami Infratech Private Limited, one of the promoters of Afcons Infrastructure. Additionally, eligible employees will have a reservation for subscriptions.
- Potential Additional Equity Issue: Afcons Infrastructure, in coordination with its book-running lead managers, may contemplate further equity issuance through a preferential issue or any other method, targeting a cash consideration of up to Rs 250 crore as a pre-IPO placement. The size of the fresh issue may be adjusted if such a placement occurs.
- Ownership Dynamics: Tata Sons and Tata Trusts are reportedly monitoring the Mistry family-promoted SP group’s efforts to raise Rs 2,000 crore from state-run institutions to refinance debt secured against stakes in the Tata group holding company. SP group holds an 18.37% stake in Tata Sons, entirely pledged against loans, while Tata Trusts own a 66% stake in the holding company.
- Company Profile: Afcons Infrastructure Limited, a leading infrastructure engineering and construction company under the Shapoorji Pallonji group, boasts a six-decade-long history of successfully delivering diverse and challenging EPC projects domestically and internationally. It operates across five key infrastructure verticals: Marine and Industrial, Surface Transport, Urban Infrastructure, Hydro and Underground, and Oil and Gas.
- Global Footprint: As of September 30, 2023, Afcons is engaged in 67 active projects across 13 countries in Asia, Africa, and the Middle East, positioning itself as a prominent player in the international infrastructure landscape.
- Competitive Landscape: Afcons competes with listed peers such as L&T, KEC International, Kalpataru Projects International, and Dilip Buildcon.
- Financials: As of September 30, 2023, Afcons has a robust order book worth Rs 34,888.39 crore.
- Offer Composition: The IPO includes a reservation of not more than 50% of the net offer for qualified institutional buyers (QIBs), a minimum of 15% for non-institutional bidders, and the remaining 35% for retail individual investors.
- Lead Managers and Registrar: ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets are the book-running lead managers, while Link Intime India is the registrar of the issue.
- Stock Exchange Listing: Afcons Infrastructure Limited’s shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
- Disclaimer/Sourece: This information is provided for informational purposes only and does not constitute investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.