Shapoorji Pallonji Group’s flagship infrastructure firm, Afcons Infrastructure Limited, gets Sebi nod for its Rs 7,000 crore IPO

Shapoorji Pallonji group’s flagship infrastructure engineering and Construction Company, Afcons Infrastructure Limited (AIL), has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 7,000 crore through an initial public offering (IPO).

The Company had filed its IPO papers with Sebi on March 28, 2024.

The IPO, with a face value of Rs 10 per equity share, is 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. The offer includes a reservation for subscriptions by eligible employees.

Proceeds from the fresh issue to the extent of Rs 150 crore will be used for capital expenditure towards purchase of construction equipment; Rs 350 crore for funding long term working capital requirements; Rs 500 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the Company; and general corporate purposes

Afcons Infrastructure Limited is an Indian conglomerate with a rich history spanning over six decades. The company has a proven track record of 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, as per the 2023 rankings by Engineering News-Record (ENR) based on international revenue for the financial year 2023.

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.

AIL’s order book has increased at a CAGR of 7.6% from ₹26,248.46 crore in the financial year 2021 to ₹30,405.77 crore in the financial year 2023. As of September 30, 2023, it stood at ₹34,888.39 crore.

Afcons’ restated consolidated revenue from operations during the fiscal year 2023 increased 14.69% to Rs 12,637.38 crore from Rs 11,018.97 crore in the previous year. Profit after tax grew 14.89% from Rs 357.60 crore for the financial year 2022 to Rs 410.86 crore for the financial year 2023.

For the six months ended September 30, 2023, revenue from operations stood at Rs 6,505.39 crore, and profit after tax stood at Rs 195.13 crore.

ICICI Securities Limited, DAM Capital Advisors Limited, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the issue.

 

Sebi Link: https://www.sebi.gov.in/filings/processing-status/sep-2024/processing-status-issues_59558.html