Sun Oct 27 08:12:50 UTC 2024: ## Afcons Infrastructure IPO Opens for Bidding, Aims to Raise ₹5,340 Crore
**Mumbai, October 25, 2024:** Afcons Infrastructure, a leading infrastructure engineering and construction company, launched its initial public offering (IPO) today, with bidding concluding on Tuesday, October 29. The company is offering shares at a fixed price band of ₹440-463 per share, with a minimum application of 32 shares and multiples thereafter.
Established in 1959, Afcons Infrastructure boasts a rich history and is part of the Shapoorji Pallonji Group. The company specializes in various verticals, including marine and industrial projects, surface transport projects, urban infrastructure projects, hydro and underground projects, and oil & gas projects.
The ₹5,340 crore IPO comprises a fresh issue of ₹1,250 crore and an offer-for-sale (OFS) of up to ₹4,180 crore by promoter Goswami Infratech. The proceeds will be utilized for capital expenditure, funding working capital needs, prepayment of borrowings, and general corporate purposes.
Prior to the IPO, Afcons Infrastructure secured ₹2,967 crore from a number of investors, including GIC Singapore, Enam Holdings, Synergy Capital, and several others. Additionally, the company secured ₹1,621.5 crore from 80 anchor investors, allocating 3,50,21,597 shares at ₹463 apiece. Anchor investors include Monetary Authority of Singapore, Blackrock, PGGM World Equity, and prominent financial institutions.
Afcons Infrastructure boasts an impressive order book of ₹34,888 crore as of September 30, 2023, with 67 active projects across 13 countries. The company has a strong global presence, with projects in Asia, Africa, and the Middle East. The company has completed 76 projects in 15 countries, with a total executed contract value of ₹52,220 crore.
Financially, Afcons Infrastructure reported a net profit of ₹91.59 crore with a revenue of ₹3,213.47 crore for the quarter ended June 30, 2024. For the fiscal year ended March 31, 2024, the company recorded a net profit of ₹449.76 crore with a revenue of ₹13,646.88 crore.
The company’s shares are expected to be listed on both BSE and NSE on Monday, November 4.
Several brokerage firms have expressed their views on the Afcons Infrastructure IPO. KR Choksey Finserv, Anand Rathi Research, Canara Bank Securities, and Marwadi Financial Services have all recommended subscribing to the IPO, citing the company’s strong financials, growth potential, and diversified order book. Chola Securities and Nirmal Bang Securities have issued a “neutral” rating, citing concerns about revenue growth and valuation compared to peers. Swastika Investmart, StoxBox, and Arihant Capital Markets have all recommended subscribing to the IPO, emphasizing the company’s strong market position, parentage, and long-term prospects.
First Piper 