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Afcons Infrastructure has secured SEBI approval for a ₹7,000 crore IPO. The IPO includes a ₹1,250 crore fresh issue and a ₹5,750 crore offer for sale. The company plans to use the proceeds for equipment purchases, working capital, and debt repayment.
Afcons Infrastructure Limited, the flagship infrastructure firm of the Shapoorji Pallonji Group, has received final approval from the Securities and Exchange Board of India (SEBI) to launch its much-awaited ₹7,000 crore Initial Public Offering (IPO). The infrastructure giant, known for its work in marine, industrial, and urban projects, aims to raise capital to fund its growth and expansion initiatives.
Afcons Infrastructure's IPO will comprise two key components: a fresh issue worth ₹1,250 crore and an offer for sale of ₹5,750 crore by Goswami Infratech Private Limited, a Shapoorji Pallonji-owned investment firm. A portion of the IPO will also be reserved for eligible employees of the company.
The fresh issue proceeds will be utilised for several operational needs, including the purchase of construction equipment, working capital requirements, debt repayment, and general corporate purposes.
Afcons Infrastructure has built a strong reputation in diverse sectors such as marine projects, surface transport, urban infrastructure, hydro and underground projects, as well as the oil and gas industry. The company’s order book has steadily grown over the years, reflecting its expanding presence in the infrastructure space.
As of 30th September 2023, Afcons had an order book value of ₹34,888.39 crore, up from ₹26,248.46 crore in fiscal 2021. This steady growth demonstrates the company’s resilience and ability to secure large contracts across multiple sectors.
For the financial year ending 2023, Afcons Infrastructure recorded a 14.69% increase in revenue, reaching ₹12,637.38 crore. Its profit after tax (PAT) also grew by 14.89%, totalling ₹410.86 crore. The company continued its growth trajectory into the first half of fiscal 2024, with revenue of ₹6,505.39 crore and a PAT of ₹195.13 crore.
Several prominent financial institutions are managing the IPO process for Afcons Infrastructure, including ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets. Link Intime India has been appointed as the registrar for the public issue.
With the approval from SEBI now in place, Afcons Infrastructure is poised to proceed with its ₹7,000 crore IPO. The offering will provide the company with the financial flexibility to strengthen its operations and fund future growth projects.
The IPO will also be a significant milestone for Afcons as it seeks to increase its market presence and enhance its financial position. This move could positively impact the Afcon Infrastructure share price as it continues to expand its order book and operations.
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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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