Shapoorji Pallonji group’s Afcons files for Rs 7,000 cr IPO

NEW DELHI: Shapoorji Pallonji group’s flagship infrastructure engineering and construction company Afcons Infrastructure Ltd (AIL) has filed draft papers with markets regulator Sebi to raise Rs 7,000 crore through an initial public offering.

The company’s mega IPO is a combination of 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

Ltd. Also, the offer includes a reservation for subscriptions by eligible employees, according to the draft red herring prospectus (DRHP) filed on Thursday.

Currently, promoter and promoter group entities own 99.48 per cent stake in Maharashtra-based Afcons Infrastructure.

Moreover, the company may consider raising up to Rs 250 crore in the “pre-IPO placement” round. If such placement is completed, the fresh issue size will be reduced.

Afcons operates across five major infrastructure business verticals - marine and industrial, surface transport, urban infrastructure, hydro and underground, oil and gas. In the last 10 financial years, the company has completed 76 projects across 15 countries with a total contract value of Rs 52,220 crore.

In terms of listed industry peers, Afcons compares itself with Larsen & Toubro Ltd (L&T), KEC International, Kalpataru Project International, and Dilip Buildcon.

AIL’s order book has increased at a CAGR of 7.6 per cent from Rs 26,249 crore in the financial year 2021 to Rs 30,406 crore in the financial year 2023. As of September 30, 2023, it stood at Rs 34,888 crore. Consolidated revenue from operations rose 14.7 per cent to Rs 12,637.38 crore during the fiscal year 2023 from Rs 11,018.97 crore in the preceding year. Besides, profit after tax grew 15 per cent to Rs 410.86 crore in the financial year 2023 from Rs 357.60 crore in FY22.

ICICI Securities, DAM Capital Advisors Ltd, Jefferies India, Nomura Financial Advisory and Securities, Nuvama Wealth Management, and SBI Capital Markets are the book-running lead managers to the issue.

Moreover, the company may consider raising up to Rs 250 crore in the “pre-IPO placement” round