Afcons Infrastructure Completes Full Utilization of ₹12,500 Million IPO Proceeds

Afcons Infrastructure Limited has successfully completed the full utilization of its Initial Public Offering (IPO) proceeds worth ₹12,500.00 million, according to the final monitoring agency report submitted to BSE and NSE for the quarter ended December 31, 2025. The comprehensive report, prepared by CRISIL Ratings Limited as the appointed monitoring agency, confirms that all funds have been deployed as per the original offer document without any material deviations. IPO Proceeds Allocation and Utilization The company's IPO, conducted from October 25-29, 2024, raised gross proceeds of ₹12,500.00 million through fresh equity shares. After accounting for issue expenses of ₹353.63 million, the net proceeds available for utilization stood at ₹12,146.37 million. Object Allocated Amount (₹ million) Utilization Status Completion Quarter Construction Equipment Purchase 800.00 Fully Utilized Q2 FY26 Long-term Working Capital 3,200.00 Fully Utilized Q3 FY25 Debt Repayment 6,000.00 Fully Utilized Q3 FY25 General Corporate Purposes 2,146.37 Fully Utilized Q4 FY25 Total Net Proceeds 12,146.37 Fully Utilized Q3 FY26 Monitoring Agency Assessment CRISIL Ratings Limited, in its final monitoring report, confirmed several key compliance aspects: All utilization aligned with disclosures in the offer document No major deviations observed from earlier monitoring reports No unfavorable events affecting the viability of stated objects General corporate purpose utilization remained within the 25% regulatory limit Compliance Parameter Status Monitoring Agency Comments Adherence to Offer Document Yes Proceeds utilized in line with offer document Material Deviations Not Applicable No deviations observed Statutory Approvals Not Applicable No specific approvals required Viability Impact Events None No adverse events identified Fund Deployment Timeline The utilization pattern demonstrates the company's systematic approach to fund deployment. The debt repayment and working capital requirements were addressed first, completed by December 31, 2024, followed by general corporate purposes by March 31, 2025, and finally construction equipment purchases by September 30, 2025. Regulatory Compliance The final monitoring report was submitted pursuant to Regulation 32(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 41(4) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report was certified by HDS & Associates, LLP, the company's joint statutory auditors, on January 22, 2026. With the complete utilization of IPO proceeds, Afcons Infrastructure has fulfilled its commitments to investors and regulatory authorities, positioning the company to leverage the enhanced financial resources for its civil construction business operations. Afcons Infrastructure Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, alongside significant corporate governance developments approved by the Board of Directors on February 10, 2026. Financial Performance Overview The company delivered steady performance in Q3 FY26 with comprehensive financial metrics across standalone operations: Metric: Q3 FY26 Q3 FY25 Change Revenue from Operations: ₹2,973.74 crore ₹3,205.00 crore -7.2% Total Income: ₹3,019.04 crore ₹3,323.82 crore -9.2% Profit Before Tax: ₹131.40 crore ₹217.66 crore -39.6% Profit After Tax: ₹105.18 crore ₹166.70 crore -36.9% Basic EPS: ₹2.86 ₹4.53 -36.9% For the nine-month period ended December 31, 2025, the company reported revenue from operations of ₹9,324.70 crore compared to ₹9,281.37 crore in the corresponding period of the previous year, representing marginal growth of 0.5%. Profit after tax for the nine-month period stood at ₹352.94 crore versus ₹410.79 crore in the previous year. Exceptional Items Impact The company recorded exceptional items of ₹76.51 crore in Q3 FY26, attributed to the incremental impact of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate 29 existing labour laws and resulted in estimated incremental impact on retiral benefits. The company continues to monitor regulatory developments and assess accounting implications. Major Corporate Developments Promoter Group Reclassification The Board approved the reclassification of 29 entities from 'Promoter Group' category to 'Public Shareholder' category, subject to regulatory approvals from BSE Limited and National Stock Exchange of India Limited. All 29 entities currently hold nil shares in the company: Entity Type: Count Current Holdings Property Development Companies: 18 Nil shares Farm Companies: 5 Nil shares Other Entities: 6 Nil shares Total Entities: 29 Nil shares Employee Stock Option Plan During Q3 FY26, the company granted 1,01,71,230 employee stock options under the Afcons Infrastructure Limited - Employees Stock Option Plan 2025, demonstrating commitment to employee participation in company growth. Arbitration Award Success Afcons Infrastructure received a favorable arbitration award of ₹243.53 crore for the Chenab Bridge Project Undertaking. The company recorded revenue from operations of ₹165.62 crore and adjusted ₹77.91 crore from contract assets. The total award amount is classified as current trade receivables. Operational Highlights The company operates through 15 joint operations and maintains 20 international branches across Mauritius, Mozambique, Gabon, Zambia, Mauritania, Ghana, Bhutan, Bangladesh, Liberia, Tanzania, Kuwait, Maldives, Indonesia, Qatar, Ivory Coast, Jordan, Oman, Abu Dhabi, Bahrain, and Benin. Key Financial Ratios: Q3 FY26 Debt Equity Ratio: 0.72 times Current Ratio: 1.33 times Operating Margin: 12.99% Net Worth: ₹5,083.24 crore Legal and Arbitration Matters The company continues to pursue various arbitration proceedings and legal matters related to project claims. Management remains confident about the recoverability of amounts recognized in contract assets and trade receivables, supported by legal opinions and technical evaluations, though outcomes remain subject to ongoing proceedings. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. 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