Afcons Infrastructure to Launch Rs 5,430-Crore IPO with Price Band of Rs 440-463

Afcons Infrastructure, the flagship engineering arm of the Shapoorji Pallonji group, has announced the price band for its upcoming initial public offering (IPO), set at Rs 440-463 per share. The IPO, which opens on October 25, aims to raise Rs 5,430 crore, consisting of a Rs 1,250 crore fresh issue and a Rs 4,180 crore offer for sale (OFS) by promoters.

Ahead of the IPO, Afcons secured Rs 2,967 crore from a mix of management, individual, and institutional investors. The pre-IPO investors include prominent names such as GIC Singapore, Enam Holdings, Synergy Capital, 360 One, M&G Investments, Think Investments, Discovery Capital Management, Artian Investment from ArcelorMittal, Madhusudan Kela, and White Oak, among others.

Employees will receive a Rs 44 per share discount. The selling shareholders in the Rs 4,180 crore OFS are primarily the promoter entity Goswami Infratech, along with Shapoorji Pallonji & Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce, which together hold 99.5% of Afcons, with the remaining 1% held by public shareholders.

The proceeds from the fresh issuance will be allocated as follows: Rs 80 crore for purchasing construction equipment, Rs 320 crore for funding long-term working capital, Rs 600 crore for debt prepayment, and the balance for general corporate purposes.

Afcons Infrastructure has a 65-year legacy and is renowned as the largest pure-play Indian EPC contractor in the international market. According to a Fitch report, Afcons ranks among India’s top international infrastructure firms based on the 2023 Engineering News-Record (ENR) rankings.

The company operates across five major infrastructure verticals: marine and industrial (including ports, harbours, dry docks, LNG tanks, and material handling systems), surface transport (encompassing highways, interchanges, mining infrastructure, and railways), urban infrastructure (covering metro works, bridges, flyovers, and elevated corridors), hydro and underground (including dams, tunnels, and water-related projects), and oil and gas (involving offshore and onshore projects).

Signature projects by Afcons include the Chenab rail bridge in Jammu and Kashmir, the Atal Tunnel at Rohtang Pass, India's first underground metro in Kolkata, the Mumbai-Nagpur Expressway, a 21 km submarine tunnel for the Mumbai-Ahmedabad bullet train project, and a marine bridge system in the Maldives connecting five islands.

As of June 2024, Afcons’ order book stood at Rs 31,747.43 crore. The company’s revenue grew from Rs 12,637.38 crore in FY23 to Rs 13,267.50 crore in FY24, with net income rising from Rs 411 crore to Rs 450 crore over the same period. For the three months ending June 2024, Afcons reported revenue of Rs 3,154.4 crore and a profit after tax of Rs 91.6 crore.

In the pre-IPO phase, Goswami Infratech transferred over 6.25 crore equity shares to several global and domestic investors, including Discovery Global Opportunity (Mauritius), Volrado Venture Partners Fund, Blue Lotus Investment Fund, Cohesion MK Best Ideas Sub-Trust, Gamnat, Prudential Assurance Company, Quant Mutual Fund, SBI General Insurance, Synergy Solutions Investments Holding, TIMF Holdings, Ashoka India Equity Investment Trust, Nuvama Crossover Opportunities Fund, Artian Capital, Ananta Capital Ventures Fund, and 360 One Special Opportunities Fund.

Since FY2013, Afcons has completed 79 projects worth Rs 56,305 crore across 17 countries. As of June 2024, the company has 65 active projects in 12 countries, valued at Rs 31,747 crore.

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