Enam, Madhu Kela, Quant MF, GIC, 360 ONE and many more invest Rs 3,000 crore ahead of Afcons Infrastructure IPO

Promoters - Goswami Infratech, Shapoorji Pallonji and Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce - hold 99 percent shareholding in the company and the one percent is owned by the public shareholders

Engineering and construction company Afcons Infrastructure has attracted significant interest from marquee domestic as well as global investors before the launch of IPO, raising nearly Rs 3,000 crore.

Total 29 investors made Rs 2,896 crore investment in the Shapoorji Pallonji group-owned company by acquiring 6.25 crore equity shares (i.e. 18.36 percent of pre-IPO offer capital) from promoter Goswami Infratech, at a price of Rs 463 per share.

Gamnat Pte, the investment firm managed by Singapore sovereign wealth firm GIC, Singapore was the largest investor, acquiring 1.63 crore equity shares worth Rs 756 crore, while UAE-based Synergy Solutions Investments Holding, and Enam Holdings (through Volrado Venture Partners Fund II, Khas Advisory LLP, Shamyak Investment, Profitex Shares & Securities, and Blue Lotus Investment Fund) bought Rs 400 crore shares each in Afcons.

Further, Quant Mutual Fund, and 360 ONE invested Rs 200 crore in the infrastructure company, while TIME Holdings, and M&G Plc-backed The Prudential Assurance Company picked shares worth Rs 175 crore each. Discovery Global Opportunity (Mauritius) acquired Rs 170 crore worth shares.

Market veteran Madhusudan Kela-backed Chartered Finance & Leasing, and Cohesion MK Best Ideas Sub-Trust invested Rs 70 crore in the company, while Alchemy Capital Management's co-founder Lashit Sanghvi and his wife Neha Sanghvi bought Rs 30 crore worth shares, while SBI General Insurance, and Artian Private Equity picked Rs 100 crore worth shares each in Afcons.

Other investors included Ashoka India Equity Investment Trust Plc, Nuvama Crossover Opportunities Fund, and Ananta Capital Ventures Fund. Anchorage Capital Scheme.

Goswami Infratech has signed share purchase agreement (SPA) with above investors (excluding 360 ONE) on October 11, 2024, while the SPA was signed with 360 ONE on October 18.

Additionally, Goswami Infratech sold 16.39 lakh equity shares, worth Rs 71.67 crore, to senior management employees at Afcons, Shapoorji Pallonji group companies, and other individual investors. The shares were sold at either Rs 417 or Rs 463 per share.

Overall, the company raised Rs 2,967.65 crore before the IPO by selling a total of 18.39 crore equity shares owned by Goswami Infratech.

According to the red herring prospectus filed on October 18, Goswami Infratech has sold and transferred 16,39,164 equity shares on October 17 and October 18, and 6,25,48,264 equity shares prior to the opening of the offer. Post which, Goswami Infratech will hold 18,23,52,830 equity shares, i.e. 53.52 percent of pre-offer equity share capital.

Afcons Infrastructure will open its Rs 5,430-crore initial public offering for subscription during October 25-29. The issue size has been reduced from Rs 7,000 crore reported in the draft red herring prospectus filed in March this year.

Also read: SMPP files draft papers with SEBI to raise Rs 4,000 cr via IPO

The company will be raising Rs 1,250 crore via fresh issue component, and Rs 4,180 crore will be mobilised via offer-for-sale by Goswami Infratech.

Afcons that competes with listed peers like Larsen & Toubro, KEC International, Kalpataru Project International, and Dilip Buildcon intends to use fresh issue proceeds for purchase of construction equipments, long term working capital requirements, repaying debt, and general corporate purposes.

The infrastructure company that has order book of Rs 31,747 crore reported 9.5 percent on-year growth in net profit at Rs 449.7 crore and 5 percent year-on-year increase in revenue at Rs 13,267.5 crore in the fiscal year ended March 2024.

Also read: Waaree Energies raises Rs 1,277 crore via anchor book, IPO opens on October 21

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

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