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Afcons Infrastructure, part of the Shapoorji Pallonji Group, wins the ₹1,006.74 crore contract for Bhopal Metro's 12.915 km Blue Line project, sparking a 3% rise in its shares.
Afcons Infrastructure Ltd., part of the Shapoorji Pallonji Group, emerged as the lowest bidder (L-1) for a major ₹1,006.74 crore project in Bhopal. The project, which forms part of the Bhopal Metro Phase 1, will focus on constructing the 12.915 km Blue Line (Line-2) connecting Bhadbhada Chauraha and Ratnagiri Tiraha. This significant infrastructure boost is expected to accelerate metro connectivity in Bhopal with 13 elevated stations planned along the route.
The contract, awarded by the Madhya Pradesh Metro Rail Corporation Ltd (MPMRCL), encompasses the entire viaduct construction, all 13 stations along the Blue Line, and a connecting ramp to the shared Subhash Nagar Depot for maintenance with the Orange Line (Karond Circle to AIIMS). MPMRCL has specified a three-year construction timeline for completion, aligning with the city’s broader urban mobility expansion objectives. Financed through a €400 million loan from the European Investment Bank (EIB), the project is expected to benefit from modern European infrastructure practices.
Following the announcement, shares of Afcons Infrastructure saw a 3% rise in Monday's trading session. The contract win is expected to enhance the company’s revenue outlook, given its high-value order book. Afcons Infrastructure share price movements reflect positive investor sentiment, as the company’s order book had reached ₹31,747 crore by June 2024. This new contract adds further weight to its already robust project portfolio, strengthening its urban infrastructure sector presence.
The recent IPO by Afcons Infrastructure raised around ₹5,430 crore, with proceeds channelled primarily towards shareholder obligations. Although Afcons did not retain direct proceeds from the IPO, the company has allocated funds for capital expenditure and debt repayment. A portion of the raised funds—₹80 crore—is earmarked for construction equipment, while ₹320 crore will support working capital. An additional ₹600 crore will address outstanding debt repayment.
With a heritage dating back to 1959, Afcons has established itself as a leader in diverse infrastructure sectors, including marine, oil and gas, and urban projects. The recent contract for Bhopal Metro’s Blue Line underscores its strategic focus on urban infrastructure. The company’s consistent project acquisitions signify a strong trajectory in its sector, further positioning it as a key player in India’s rapidly growing metro rail development initiatives.
This contract win not only bolsters Afcons' project pipeline but also strengthens investor confidence, as reflected in the Afcons Infrastructure share price increase. The company’s long-standing expertise and comprehensive service portfolio make it well-suited to deliver on ambitious urban infrastructure goals.
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