Afcons Infrastructure, a leading company under the Shapoorji Pallonji Group, is gearing up for its highly anticipated IPO. The company plans to raise ₹7,000 crore through this IPO, as revealed in its draft red herring prospectus (DRHP) submitted to SEBI. The IPO will consist of a fresh issue of shares and an offer for sale component.
While Afcons will issue new shares worth ₹1,250 crore, Goswami Infratech Private Limited, a subsidiary of the Shapoorji Pallonji Group, is expected to divest ₹5,750 crore of its holdings in Afcons through the offer for sale. The offer also includes a reservation for subscriptions by eligible employees.
Afcons Infrastructure to Raise Equity Shares
Afcons Infrastructure is considering a further issue of equity shares through a preferential issue or other methods, aiming to raise ₹250 crore as a pre-IPO placement. This move might adjust the size of the fresh issue.
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Market reports suggest that the IPO could value Afcons Infrastructure Ltd at ₹19,000 – ₹20,000 crore. Known for its diversified infrastructure projects in India and internationally, Afcons undertakes projects ranging from viaducts, flyovers, and metros to pipelines, highways, and ports.
As part of the esteemed Shapoorji Pallonji Group, Afcons Infrastructure contributes to the group’s diverse business interests, including Engineering & Construction, Infrastructure, Real Estate, Water, Energy, and Financial Services sectors. Recent divestments, such as the sale of stakes in Gopalpur Port and Dharamtar Port, demonstrate the group’s strategic focus on deleveraging and unlocking value.
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Afcons Infrastructure’s track record speaks volumes, with milestones like India’s first underwater tunnels and significant contributions to metro rail, road, marine works, bridges, and flyover projects. With the IPO on the horizon, Afcons aims to leverage market opportunities and fuel its growth trajectory in line with macroeconomic trends.
Afcons Infrastructure’s Big National Projects
Afcons Infrastructure, a renowned player in the infrastructure sector, has amassed a remarkable portfolio of projects spanning various domains. From pioneering India’s first underwater tunnels to contributing significantly to metro rail, road, marine works, bridges, and flyover projects, Afcons has consistently demonstrated its prowess in delivering complex and impactful infrastructure solutions.
As the company gears up for potential growth opportunities through a pre-IPO placement, aiming to raise to ₹250 crore, it underscores Afcons’ commitment to further strengthening its financial position and expanding its capabilities to undertake larger and more ambitious projects in the future. This strategic move aligns with Afcons’ vision of sustaining its trajectory of success and innovation in the dynamic infrastructure landscape.
