Shapoorji Pallonji group-owned Afcons Infrastructure files RHP; Rs 5,430-cr IPO to open on Oct 25

Shapoorji Pallonji group-owned Afcons Infrastructure IPO

Shapoorji Pallonji group-owned Afcons Infrastructure has filed a red herring prospectus with the Registrar of Companies to raise Rs 5,430 crore via an initial public offering. The public issue will open on October 25 and the subscription will end on October 29.

The price band for the issue will be announced next week.

The IPO is a combination of fresh issuance of equity shares worth Rs 1,250 crore and an offer-for-sale of shares worth Rs 4,180 crore promoter Goswami Infratech.

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.

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In the pre-IPO round last week, promoter Goswami Infratech has transferred more than 6.25 crore equity shares to several marquee global and domestic investors including Discovery Global Opportunity (Mauritius), Volrado Venture Partners Fund, Blue Lotus Investment Fund, Cohesion MK Best Ideas Sub-Trust, Gamnat Pte, The Prudential Assurance Company, Quant Mutual Fund, SBI General Insurance, Synergy Solutions Investments Holding, TIMF Holdings, Ashoka India Equity Investment Trust Plc, Nuvama Crossover Opportunities Fund, Artian Capital, Ananta Capital Ventures Fund, and 360 ONE Special Opportunities Fund.

As a result, post the RHP filing, Goswami Infratech's shareholding in Afcons stands reduced to 53.52 percent, from 71.87 percent earlier.

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The anchor book of the maiden public issue will be open for a day on October 24.

The engineering and construction company will spend Rs 80 crore out of the net fresh issue proceeds for purchase of construction equipments, and Rs 320 crore for long term working capital requirements. Further, Rs 600 crore will be used for repaying debt, and the remainder IPO funds for general corporate purposes.

Since fiscal year 2013, Afcons Infrastructure has completed 79 projects amounting to Rs 56,305 crore across 17 countries. As of June 2024, it has 65 active or ongoing projects across 12 countries, valued Rs 31,747 crore.

On the financial front, the infrastructure company has recorded net profit at Rs 449.7 crore for the fiscal year 2024, growing 9.5 percent over the year-ago period and revenue from operations grew by 5 percent to Rs 13,267.5 crore compared to fiscal 2023. In the quarter ended June 2024, net profit increased by 0.7 percent on-year to Rs 91.6 crore and revenue declined 0.5 percent to Rs 3,154.4 crore during the same period.

The Mumbai-based company will finalise the basis of allotment of IPO shares by October 30, while the equity shares will be credited to demat accounts of eligible investors by October 31.

Investors can start trading in Afcons Infrastructure IPO shares on the BSE and NSE effective November 4.

The book-running lead managers handling this public issue are ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets.