Afcons Infrastructure raises Rs 1,621 crore from anchor investors, IPO to hit Dalal Street on October 25

Afcons Infrastructure IPO

Shapoorji Pallonji group-owned Afcons Infrastructure has mopped up Rs 1,621.5 crore from 80 institutional investors via anchor book on October 24. The Rs 5,430-crore initial share sale will hit Dalal Street on October 25.

The IPO is a combination of fresh issuance of Rs 1,250 crore by the company, and an offer-for-sale of Rs 4,180 crore worth shares by its promoter Goswami Infratech. The price band for the issue, which closes on October 29, has been fixed at Rs 440-463 per share.

The engineering and construction company in its filing to exchanges said it has finalised allocation of 3,50,21,597 equity shares to anchor investors at a price of Rs 463 per share.

Marquee global investors like Monetary Authority of Singapore, Blackrock, PGGM World Equity, Fidelity, Goldman Sachs, The Master Trust Bank of Japan, Nomura, BNP Paribas, East Bridge Capital Master Fund, Brinker Capital, Societe Generale, Morgan Stanley, and Florida Retirement System participated in the anchor book on Thursday.

Domestic institutional investors including LIC Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, ITI Mutual Fund, Nippon Life India, Aditya Birla Sun Life Trustee, Mirae Asset, Quant Mutual Fund, Invesco India, 360 ONE, Whiteoak Capital, Sunil Singhania-backed Abakkus, Sameer Arora-owned Helios Flexi Cap Fund, Mahindra Manulife, Trust Mutual Fund, Vikas Khemani-backed Carnelian, and Madhusudan Kela-backed Chartered Finance & Leasing also invested in the infrastructure company.

Insurance companies including Edelweiss Life Insurance, HDFC Life Insurance, ICICI Prudential Life Insurance, SBI General Insurance, and Reliance Nippon Life Insurance, too, poured in money in Afcons via anchor book.

Also read: Captain Fresh picks Axis Capital, BofA as bankers for $400 million public listing; prepares for pre-IPO fundraise

"Out of total allocation of 3,50,21,597 equity shares to anchor investors, 1,17,10,136 equity shares were allocated to 15 mutual funds through a total 31 schemes," Afcons said.

Before the IPO launch, promoter Goswami Infratech already mobilised nearly Rs 3,000 crore in its pre-IPO round from 29 institutional investors as well as several senior management employees at Afcons, Shapoorji Pallonji group companies, and other individual investors.

Singapore sovereign wealth firm GIC's Gamnat Pte, UAE-based Synergy Solutions Investments Holding, Enam Holdings, Quant Mutual Fund, 360 ONE, TIME Holdings, and M&G Plc-backed The Prudential Assurance Company, market veteran Madhusudan Kela-backed Chartered Finance & Leasing, and Cohesion MK Best Ideas Sub-Trust, and Alchemy Capital Management's co-founder Lashit Sanghvi and his wife Neha Sanghvi were investors in the company in its pre-IPO round.

Afcons will spend Rs 80 crore out of net fresh issue proceeds (fresh issue less IPO expenses) for purchase of construction equipments, Rs 320 crore for long term working capital requirements, Rs 600 crore for repaying debts, and the remainder for general corporate purposes.

As of June this year, the company has 65 active projects across 12 countries, amounting to an order book of Rs 31,747 crore, including Kolkata Metro project (design and construction of tunnels below the hooghly river), Male to Thilafushi link project (Maldives), and Mumbai – Ahmedabad High Speed Railway project (construction of a 21-km long tunnel).

ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets are acting as the merchant bankers to the issue.