Afcons Infrastructure IPO: SEBI Nods To Constrction Arm Of Shapoorji Pallonji Group's ₹5,430 Crore Public Issue To Open On October 25

Afcons Infrastructure, owned by the Shapoorji Pallonji group, has submitted a red herring prospectus to the Registrar of Companies in an attempt to raise Rs 5,430 crore through an IPO. On October 25, the public issue will go live, and on October 29, subscriptions will close.

IPO structure and promotors

Next week, the issue's price range will be revealed. The IPO is a combination of Goswami Infratech's offer-for-sale of shares valued at Rs 4,180 crore and the new issuance of equity shares valued at Rs 1,250 crore.

99 per cent of the company's shares are owned by its promoters, Goswami Infratech, Shapoorji Pallonji and Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce. The remaining 1 percent is owned by the general public.

Utilisation of IPO proceeds

The engineering and construction firm will purchase construction equipment with Rs 80 crore of the net fresh issue proceeds, and it will use Rs 320 crore for long-term working capital needs.

Furthermore, the remaining IPO funds will be used for general corporate purposes, with Rs 600 crore going towards debt repayment.

Listing timetable

While the equity shares will be credited to eligible investors' demat accounts by October 31, the Mumbai-based company will finalise the basis for allocating IPO shares by October 30.

On November 4, investors will be able to trade Afcons Infrastructure IPO shares on the BSE and NSE.

Company's financials

The infrastructure company's fiscal year 2024 net profit was Rs 449.7 crore, up 9.5 per cent from the previous year, and its operating revenue increased by 5 per cent to Rs 13,267.5 crore from fiscal 2023.

During the quarter that concluded in June 2024, revenue decreased 0.5 per cent to Rs 3,154.4 crore, while net profit rose 0.7 per cent year over year to Rs 91.6 crore.

Book running lead managers

SBI Capital Markets, Jefferies India, Nomura Financial Advisory and Securities (India), ICICI Securities, DAM Capital Advisors, and Nuvama Wealth Management are the book-running lead managers in charge of this public offering.