Afcons Infrastructure IPO
Afcons Infrastructure Limited, a leading infrastructure engineering and construction firm with over 60 years of experience, has launched an initial public offering (IPO) to raise Rs 5,430 crores. This article provides an overview of the Afcons IPO, exploring its key details, financials, and potential for investors.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
IPO Structure and Timeline
Afcons Infrastructure IPO is a book built issue of Rs 5,430.00 crores. The issue is a combination of fresh issue of 2.7 crore shares aggregating to Rs 1,250.00 crores and offer for sale of 9.03 crore shares aggregating to Rs 4,180.00 crores.
The IPO opens on October 25, 2024 and closes on October 29, 2024. The allotment is expected to be finalized on Wednesday, October 30, 2024. Afcons Infrastructure IPO will list on BSE, NSE with tentative listing date fixed as Monday, November 4, 2024.
1
IPO Opens
October 25, 2024
2
IPO Closes
October 29, 2024
3
Basis of Allotment
October 30, 2024
4
Listing Date
November 4, 2024
IPO Details and Reservation
Afcons Infrastructure IPO price band is set at ₹440 to ₹463 per share. The minimum lot size for an application is 32 Shares. The minimum amount of investment required by retail investors is ₹14,816. The minimum lot size investment for sNII is 14 lots (448 shares), amounting to ₹207,424, and for bNII, it is 68 lots (2,176 shares), amounting to ₹1,007,488.
The issue includes a reservation of up to 631,313 shares for employees offered at a discount of Rs 44 to the issue price.
Afcons Infrastructure IPO offers 12,16,41,547 shares. 2,45,68,181 (20.2%) to QIB, 1,84,26,137 (15.15%) to NII, 4,29,94,319 (35.35%) to RII, 6,31,313 (0.52%) to employees and 3,50,21,597 (28.79%) to Anchor investors.
Retail Investors
Minimum lot: 32 shares
Minimum investment: ₹14,816
Small NII
Minimum lot: 14 lots (448 shares)
Minimum investment: ₹207,424
Big NII
Minimum lot: 68 lots (2,176 shares)
Minimum investment: ₹1,007,488
About Afcons Infrastructure Limited
Incorporated in 1959, Afcons Infrastructure Limited is an infrastructure engineering and construction company of the Shapoorji Pallonji group, with a legacy of over six decades.
As of September 30 2023, the company has completed 76 projects across 15 countries with a total historic executed contract value of Rs 522.20 billion.
As of September 30, 2023, the company has 67 active projects across 13 countries, totaling an order book of Rs 348.88 billion.
The company is globally present in Asia, Africa and Middle East.
1
Marine and Industrial Projects
Ports, harbor jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks, and material handling systems.
2
Surface Transport Projects
Highways, roads, interchanges, mining-related infrastructure, and railways.
3
Urban Infrastructure Projects
Elevated and underground metro works, bridges, flyovers, and elevated corridors.
4
Hydro and Underground Projects
Dams, barrages, tunnels (including large road tunnels), and underground works, water, and irrigation.
Company Financials
Afcons Infrastructure Limited's revenue increased by 6% and profit after tax (PAT) rose by 9% between the financial year ending with March 31, 2024 and March 31, 2023.
Amount in ₹ Crore
Key Performance Indicators
The market capitalization of Afcons Infrastructure IPO is Rs 17026.18 Cr.
KPI as of June 30, 2024.
ROE
10.55%
ROCE
14.89%
Debt/Equity
0.91
RoNW
2.50%
Pre IPO EPS (Rs): 13.2
Post IPO EPS (Rs): 9.96
Pre IPO P/E (x): 35.08
Post IPO P/E (x): 46.48
Objects of the Issue
The Company proposes to utilise the Net Proceeds towards funding the following objects:
- Capital expenditure towards purchase of construction equipment
- Funding long term working capital requirements
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the Company
- General corporate purpose
IPO Review
Afcons Infrastructure is strategically positioned for sustained growth within the infrastructure sector, leveraging its extensive expertise in executing complex engineering, procurement, and construction projects. The company's strong capabilities across marine, urban infrastructure, and hydro projects, combined with its strategic client relationships, enhance its competitive edge.
Afcons is actively pursuing geographical diversification, focusing on emerging markets in Africa and the Middle East, while continuously innovating its project execution methodologies. With its robust growth potential, solid financial performance, and strategic initiatives aimed at market expansion, Afcons Infrastructure is well-poised to capitalize on the industry's opportunities.