Afcons Infrastructure's Rs 5,430-crore initial public offer (IPO) was off to a slow start on October 28, the second day of bidding, after the issue was overall subscribed 36 percent. The public offer drew bids for 3.15 crore shares as against 8.66 crore shares on offer, according to exchange data.
Afcons Infrastructure is a key engineering and construction arm of the Shapoorji Pallonji group, boasting over 60 years of experience. The company is globally present in Asia, Africa and the Middle East. The company has five major infrastructure business verticals.
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As per NSE data, retail investors were at the forefront, buying 36 percent of the portion reserved for them. The non-institutional investors' portion was booked at just 72 percent while the employee quota was fully subscribed. QIBs or Qualified Institutional Buyers bought 8 percent shares of their reserved portion.
The issue is a combination of a fresh issue of 2.7 crore shares aggregating to Rs 1,250 crore and an offer for sale of 9.03 crore shares aggregating to Rs 4,180 crore.
The company plans to use the IPO proceeds to fund several objectives, including capital expenditure for purchasing construction equipment, meeting long-term working capital needs, prepaying or repaying a portion of certain outstanding borrowings and acceptances, and for general corporate purposes.
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