Shapoorji Pallonji Group’s infrastructure flagship firm Afcons Infrastructure gets Sebi nod for ₹7,000 crore IPO

Shapoorji Pallonji group’s flagship infrastructure engineering and Construction Company, Afcons Infrastructure Limited (AIL), has received final approval from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise ₹7,000 crore through an initial public offering (IPO).

The company had filed draft papers for IPO with Sebi on March 28 this year.

The IPO, with a face value of ₹10 per equity share, consists of a fresh issue of shares amounting to ₹1,250 crore and an offer for sale of up to ₹5,750 crore by Goswami Infratech Private Limited.

Proceeds from the fresh issue, totaling ₹150 crore, will be allocated for capital expenditures related to the purchase of construction equipment; ₹350 crore will be designated for long-term working capital needs; ₹500 crore will go towards the prepayment or scheduled repayment of certain outstanding borrowings and acceptances by the company; and the remaining funds will be used for general corporate purposes.

Afcons operates across multiple infrastructure sectors, including marine, surface transport, urban infrastructure, hydro and underground projects, as well as oil and gas initiatives.

The company's order book has grown at a compound annual growth rate of 7.6%, increasing from ₹26,248.46 crore in 2021 to ₹30,405.77 crore in 2023. As of September 2023, the order book has further expanded to ₹34,888.39 crore.

Afcons’ restated consolidated revenue from operations for the fiscal year 2023 rose by 14.69%, reaching ₹12,637.38 crore, up from ₹11,018.97 crore the previous year. Profit after tax increased by 14.89%, climbing from ₹357.60 crore in financial year 2022 to ₹410.86 crore in financial year 2023.

For the six months ending September 30, 2023, the company's revenue from operations was ₹6,505.39 crore, while profit after tax stood at ₹195.13 crore.

The book-running lead managers for this offering include ICICI Securities Limited, DAM Capital Advisors Limited, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited. Link Intime India Private Limited serves as the registrar for the issue.