Afcons Infrastructure, the flagship infrastructure engineering and construction company of Shapoorji Pallonji group has filed its DRHP with market regulator Sebi to raise Rs 7,000 crore via IPO.
Afcons Infrastructure is an Indian conglomerate, delivering a wide range of complex and challenging EPC projects both domestically and internationally.
Afcons Infrastructure Limited, the flagship infrastructure engineering and construction company of Shapoorji Pallonji group has filed its draft papers (DRHP) with market regulator Sebi to raise Rs 7,000 crore funds through an initial public offering (IPO).
The issue would be a mix of fresh issue of shares of 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 the company. The offer would include a reservation for subscriptions by eligible employees. As per the market sources, it is the largest infra IPO in a decade.
The company, in consultation with the book-running lead managers, may consider undertaking a further issue of equity shares through a preferential issue or any other method for a cash consideration aggregating up to Rs 250 crore as a pre-IPO placement. The size of the fresh issue would be reduced if such a placement is undertaken.
Earlier today, a media report today suggested that Tata Sons and the Tata Trusts are closely monitoring the Mistry family-promoted SP group’s bid to raise Rs 2,000 crore from state-run institutions to refinance debt taken against stakes in the Tata group holding company.
An ET report suggested that SP group held 18.37 per cent stake in Tata Sons, all of which is pledged against loans. The Tata Trust owns 66 per cent stake in the holding company, the media report suggested.
Afcons Infrastructure is an Indian conglomerate with a history spanning over six decades successfully delivering a wide range of complex and challenging engineering, procurement, and construction (EPC) projects both domestically and internationally. According to the Fitch Report, Afcons is recognized as one of India’s leading international infrastructure firms.
Afcons operates across five major infrastructure business verticals – Marine and Industrial, encompassing projects such as ports, harbors, dry docks, LNG tanks, and material handling systems; Surface transport, including highways, interchanges, mining infrastructure, and railways; Urban infrastructure, covering metro works, bridges, flyovers, and elevated corridors; Hydro and Underground, comprising dams, tunnels, and water-related projects; Oil and Gas, involving offshore and onshore projects in the oil and gas sector.
As of September 30, 2023, Afcons is actively involved in 67 active projects across 13 countries. The company’s global footprint extends across Asia, Africa, and the Middle East. It competes with listed peers like L&T, KEC International, Kalpataru Projects International, Dilip Buildcon to name a few.
As of September 30, 2023, Afcons has an impressive equipment base, including marine barges, cranes, tunnel boring machines, jack-ups, and piling rigs. The company maintains two dedicated workshops in Delhi and Nagpur for equipment maintenance. As of September 30, 2023, the company’s order book stood at Rs Rs 34,888.39 crore.
The offer included a reservation of not more than 50 per cent of the net offer for qualified institutional buyers (QIBs), while not less than 15 per cent of the net offer shall be available for allocation to non-institutional bidders, and remaining 35 per cent of the net offer shall be available for allocation to retail individual investors of the issue.
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, and Link Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE.
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