Maker Of The World’s Highest Rail Bridge In India Set To Make Stock Market Debut – Check Details (image source: Getty Images)
Afcons Infrastructure Limited, a renowned engineering and construction division of the Shapoorji Pallonji Group, has filed its draft red herring prospectus with SEBI to kickstart its initial public offering (IPO).
Afcons Infrastructure IPO Issue Size
The IPO is structured with a face value of Rs 10 per share and includes a fresh issue worth Rs 1,250 crore and an offer for sale amounting to Rs 5,750 crore from Goswami Infratech Private Limited. Market insiders have labeled this IPO as the most significant infra IPO in the last decade.
Afcons Infrastructure IPO Features
The IPO also incorporates an employee reservation segment and may consider a pre-IPO placement of equity shares up to Rs 250 crore. The IPO allocation process will follow the book-building method, targeting different investor classes with specific allotment percentages.
Afcons Infrastructure: Projects and Legacy
With a legacy spanning over 60 years, Afcons Infrastructure stands as a powerhouse in the infrastructure domain, boasting a portfolio of intricate Engineering, Procurement, and Construction (EPC) projects globally. Recognized in the 2023 ENR rankings, Afcons shines in marine, port facilities, bridges, and other segments. Its global operations extend across Asia, Africa, and the Middle East, with landmark projects like the Chenab Bridge and the Atal Tunnel.
Current ventures such as the Kolkata Metro and the Male to Thilafushi Link Project highlight its commitment to infrastructural innovation. Afcons Infrastructure positions itself alongside industry giants like L&T, KEC, KPIL, and DBL. The company’s order book reflects steady growth, with a Compound Annual Growth Rate (CAGR) of 7.6 per cent over two years, standing at Rs 34,888.39 crore as of September 30, 2023.
Afcons Financial Reports and Market Outlook
In fiscal year 2023, Afcons Infrastructure witnessed a surge in revenue to Rs 12,637.38 crore, marking a 14.69 per cent increase, with profits rising to Rs 410.86 crore, a 14.89% rise. The six-month period ending September 30, 2023, recorded revenues of Rs 6,505.39 crore and profits of Rs 195.13 crore. The Fitch Report underscores the robust growth of the Indian infrastructure sector, with an 11.4 per cent CAGR from FY 2018 to FY 2022.
Furthermore, Fitch anticipates a compound annual growth rate of 9.9 per cent for India’s infrastructure business, projecting a rise from Rs 8.56 trillion in FY 2023 to Rs 13.72 trillion in FY 2028.
Afcons Infrastructure Book-Running Lead Managers and Registrar
The book-running lead managers for the IPO are 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 will serve as the issue’s registrar.
