Shapoorji Pallonji's Afcons Infrastructure seeks Rs 7,000 crore through IPO
Afcons order book increased at a CAGR of 7.6% from Rs 26,249 crore in FY21 to Rs 30,406 crore in FY23, standing at Rs 34,888 crore as of Sept 30, 2023
Hyderabad: Shapoorji Pallonji Group's infrastructure engineering and construction company Afcons Infrastructure Ltd (AIL) has submitted draft papers to market regulator Sebi for an initial public offering (IPO) to raise Rs 7,000 crore.
The IPO consists of a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 5,750 crore by promoter Goswami Infratech Private Limited. The offer also includes a reservation for subscriptions by eligible employees, as stated in the draft red herring prospectus (DRHP) filed on Thursday.
Currently, the promoter and promoter group entities hold a 99.48 per cent stake in Maharashtra-based Afcons Infrastructure. Additionally, the company may consider raising Rs 250 crore in a "pre-IPO placement" round, which would reduce the fresh issue size if completed.
Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified institution with a presence in engineering & construction, infrastructure, real estate, water, energy, and financial services sectors globally. The group companies undertake projects, develop landmarks, and engage in technologies for water management, renewable energy, oil & gas, and power.
Afcons operates across five infrastructure business verticals: marine and industrial, surface transport, urban infrastructure, hydro and underground, oil and gas. Over the past 10 financial years, the company has completed 76 projects across 15 countries, totalling Rs 52,220 crore.
Afcons compares itself with Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL), and Dilip Buildcon Ltd (DBL) among listed industry peers.
AIL's order book increased at a CAGR of 7.6 per cent from Rs 26,249 crore in FY21 to Rs 30,406 crore in FY23, standing at Rs 34,888 crore as of September 30, 2023. The company's consolidated revenue from operations rose by 14.7 per cent to Rs 12,637.38 crore in FY23 from Rs 11,018.97 crore in the previous year.
Profit after tax also grew by 15 per cent to Rs 410.86 crore in FY23 from Rs 357.60 crore in FY22.
ICICI Securities Ltd, DAM 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 book-running lead managers for the issue.
