afcons infrastructure IPO: Shapoorji Pallonji Group’s Afcons Infra to launch Rs 5,430 cr IPO on Oct 25

New Delhi: Shapoorji Pallonji Group Infrastructure Engineering and Construction Company Afcons Infrastructure Ltd (AIL) is gearing up to launch its Rs 5,430 crore initial public offering (IPO) on October 25. The initial share sale will conclude on October 29 and bidding for anchor investors will open for one day on October 24, according to the red herring prospectus (RHP).

The company will announce the price band for the IPO next week. The infrastructure company’s Rs 5,430 crore 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 Private Limited.

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 per cent 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.

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 LtdDAM Capital Advisors Ltd, Jefferies India Private Ltd, Nomura Financial Advisory and Securities (India) Private Ltd, Nuvama Wealth Management Ltd and SBI Capital Markets Ltd are the lead managers of the issue.