Afcons Infrastructure To Raise Rs 5,430 Crore Through IPO, Opening On October 25

Shapoorji Pallonji group-owned Afcons Infrastructure has filed a red herring prospectus with the Registrar of Companies to raise Rs 5,430 crore through an initial public offering (IPO). The public issue will open on October 25 and close on October 29, with the price band to be revealed next week.

The IPO consists of a fresh equity issuance worth Rs 1,250 crore and an offer-for-sale of Rs 4,180 crore by promoter Goswami Infratech. Promoters, including Goswami Infratech, Shapoorji Pallonji and Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce, hold a 99 per cent stake in the company, with the remaining 1 per cent owned by public shareholders.

Afcons Infrastructure plans to use Rs 80 crore from the fresh issue for purchasing construction equipment, Rs 320 crore for long-term working capital, and Rs 600 crore to repay debt. The rest of the proceeds will go towards general corporate purposes.

As a result, post the RHP filing, Goswami Infratech's shareholding in Afcons stands reduced to 53.52 percent, from 71.87 percent earlier.

The company, known for its engineering and construction projects, has completed 79 projects worth Rs 56,305 crore across 17 countries since FY13. As of June 2024, it is working on 65 active projects across 12 countries valued at Rs 31,747 crore.

The anchor book for the IPO will open on October 24, with shares expected to be listed on BSE and NSE starting November 4. Lead managers for the IPO include ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets.