The company has set a price band of Rs 440 to Rs 463 per share, where investors can bid for 32 shares in one lot.
The IPO is a combination of a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 4,180 crore by promoter Goswami Infratech.
The size of the offering has been reduced following a pre-IPO fundraising. In draft documents from March, the company had initially planned to raise Rs 7,000 crore through initial share sale.
Currently, the promoter and promoter group entities own 99% stake in Maharashtra-based Afcons Infrastructure.
The company will use Rs 80 crore of the proceeds from the fresh issue to purchase construction equipment, Rs 320 crore for long-term working capital, Rs 600 crore to repay debts and the rest for general corporate purposes.
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Afcons Infrastructure has a proven track record of successfully executing a wide range of complex and challenging engineering, procurement and construction (EPC) projects, both domestically and internationally. According to the Fitch Report, Afcons is recognized as one of India’s leading international infrastructure companies, as ranked by Engineering News-Record (ENR) 2023 based on FY2023 international revenue.
The company operates in five major infrastructure business verticals, including marine and industrial, surface transportation, urban infrastructure, hydropower and underground, and oil and gas.
Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified group and has a leading presence in engineering and construction, infrastructure, real estate, water, energy and financial services sectors across the world.
In terms of listed industry peers, Afcons compares with Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL) and Dilip Buildcon Ltd (DBL).
ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management and SBI Capital Markets are the lead managers of the issue.
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