Shapoorji Pallonji Group's Afcons Infra to Float Rs 5,430-Crore IPO
The initial share sale by Shapoorji Pallonji Group's infrastructure engineering and construction company Afcons Infrastructure Ltd (AIL) is set to conclude on October 29. The bidding for anchor investors will open for a day on October 24 as per the red herring prospectus (RHP).
The company is gearing up to launch its Rs 5,430-crore initial public offering (IPO) on October 25. The IPO constitutes a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 4,180 crore by promoter Goswami Infratech Private Limited.
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The offer size has been adjusted following a pre-IPO fundraising. Initially targeting to raise Rs 7,000 crore in the March draft papers, the company has now settled on Rs 5,430 crore for the IPO.
Utilization of Funds
Afcons Infrastructure plans to allocate the proceeds from the fresh issue as follows:
- Rs 80 crore for the purchase of construction equipment
- Rs 320 crore for long-term working capital
- Rs 600 crore for debt repayment
- Remaining amount for general corporate purposes
Established in 1865, Shapoorji Pallonji Group (SP Group) has a diversified presence in engineering & construction, infrastructure, real estate, water, energy, and financial services sectors worldwide.
Industry Comparison
Afcons Infrastructure compares itself with industry peers such as Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL), and Dilip Buildcon Ltd (DBL).
The book-running lead managers for the IPO are 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.
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