Afcons Infrastructure Secures ₹1,621 Crore from Anchor Investors Ahead of IPO

Afcons Infrastructure Ltd, the infrastructure and engineering subsidiary of Shapoorji Pallonji Group, raised ₹1,621 crore from anchor investors just ahead of its initial public offering (IPO), which opens on October 25. The anchor book received strong participation from both foreign and domestic institutions, including prominent names such as HDFC Mutual Fund, ICICI Prudential MF, BlackRock, Fidelity Investments, and Goldman Sachs. Afcons allocated over 3.5 crore shares to 80 investors at the top end of its price band, ₹463 per share.

Of the total 3.5 crore equity shares, domestic mutual funds received a significant 1.17 crore shares, valued at ₹542.2 crore, across 31 investment schemes. This represents roughly 33% of the anchor allocation.

Afcons’ ₹5,430-crore IPO includes a fresh issue of ₹1,250 crore and an offer for sale (OFS) of ₹4,180 crore by the promoter, Goswami Infratech Private Limited. Initially aiming for a ₹7,000 crore target, Afcons adjusted the IPO size after pre-IPO fundraising.

The IPO proceeds will be allocated towards various corporate needs: ₹80 crore for construction equipment, ₹320 crore for long-term working capital, ₹600 crore to repay debt, and the remainder for general purposes.

With origins dating back to 1865, the Shapoorji Pallonji Group has a vast presence across engineering, infrastructure, real estate, water, energy, and financial services. Afcons counts L&T, KEC International, Kalpataru Projects, and Dilip Buildcon among its industry peers. ICICI Securities, Jefferies India, Nomura, DAM Capital Advisors, and SBI Capital Markets are among the lead managers for the issue.

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