Afcons Infrastructure plans to raise up to ₹5,430 crore through IPO; fresh issue up to ₹1,250 crore
According to a red herring prospectus (RHP) filed with Sebi, Afcons Infrastructure Ltd plans to raise up to ₹5,430 crore through the IPO. Of this, the fresh issue of equity shares is up to ₹1,250 crore and the offer for sale (OFS) is up to ₹4,180 crore.
The proceeds from the OFS will be received by the selling shareholder and Afcons will not receive any proceeds from it. Goswami Infratech Pvt Ltd, a promoter group company, is selling shares through OFS.
Of the total proceeds from the fresh issue of shares, Afcons Infrastructure has proposed to use ₹80 crore for capital expenditure towards the purchase of construction equipment. It will use ₹320 crore towards funding long-term working capital requirements.
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Around ₹600 crore will be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings. The remaining funds will be for general corporate purposes.
Afcons Infrastructure is the flagship infrastructure, engineering and construction company of the Shapoorji Pallonji group — a diversified Indian conglomerate — and has a legacy of over six decades.
“We have a strong track record of executing numerous complex, challenging and unique engineering, procurement and construction (EPC) projects both within India and internationally,” the RHP said.
During the period comprising the last 11 financial years and the three-month period ending June 30, 2024, Afcons has completed 79 projects across 17 countries with a total historic executed contract value of ₹56,305 crore.
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As of June 30, 2024, Afcons had 65 active projects (ongoing projects) across 12 countries, aggregating to an order book of Rs 31,747 crore. Afcons projects cover five major infrastructure business verticals.
These include marine and industrial, covering ports and harbour jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks and material handling systems.
The projects are in surface transport, covering highways and roads, interchanges, mining-related infrastructure and railways. Its projects are in urban infrastructure space, covering elevated and underground metro works, bridges, flyovers, and elevated corridors.
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Afcons implements hydro and underground projects, covering dams and barrages, tunnels (including large road tunnels) and underground works, water and irrigation. Afcons take projects in the oil and gas segment, covering both offshore and onshore oil and gas projects.
