Shapoorji Pallonji Group’s Afcons Infra files documents for Rs 7,000 cr IPO | Company News | Trending Viral hub


Afcons Infrastructure Ltd (AIL), the flagship infrastructure construction and engineering company of Shapoorji Pallonji Group, has filed draft documents with markets regulator Sebi to raise Rs 7,000 crore through an initial public offering (IPO).

The company’s mega IPO is a combination of a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 5,750 crore by promoter Goswami Infratech Private Limited. Additionally, the offer includes a reserve for subscriptions from eligible employees, according to the draft red herring prospectus (DRHP) filed on Thursday.

Currently, the promoter and promoter group entities hold 99.48 per cent stake in Maharashtra-based Afcons Infrastructure.

Additionally, the company could consider raising up to Rs 250 crore in the ‘pre-IPO placement’ round. If such placement is completed, the size of the new issue will be reduced.

Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified institution and has a leading presence in engineering and construction, infrastructure, real estate, water, energy and financial services sectors across the world. The group’s companies build megastructures, develop emblematic monuments, promote innovative technologies in water management, renewable energy, oil and gas, and energy.

The Afcons group company operates in five major infrastructure business sectors: maritime and industrial, surface transportation, urban infrastructure, hydropower and underground, oil and gas. In the last 10 financial years, the company has completed 76 projects across 15 countries with a total contract value of Rs 52.22 billion.

In terms of listed industry peers, Afcons compares with Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL) and Dilip Buildcon Ltd (DBL).

AIL’s order book has increased at a CAGR of 7.6 per cent from Rs 26,249 crore in FY 2021 to Rs 30,406 crore in FY 2023. As on September 30, 2023, it stood at 34,888 crore.

The company’s consolidated revenue from operations increased 14.7 per cent to Rs 12,637.38 crore during fiscal 2023 from Rs 11,018.97 crore in the previous year. Additionally, profit after tax grew 15 per cent to Rs 410.86 crore in FY23 from Rs 357.60 crore in FY22.

ICICI Securities Ltd, DAM Capital Advisors Ltd, Jefferies India Private Ltd, Nomura Financial Advisory and Securities (India) Private Ltd, Nuvama Wealth Management Ltd and SBI Capital Markets Ltd are the lead managers of the issue.

(Only the title and image of this report may have been modified by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First published: Mar 29 2024 | 6:05 PM IS


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