Shapoorji Pallonji Group's flagship infrastructure engineering and construction company, Afcons Infrastructure Limited (AIL), has received final approval from capital markets regulator, Securities and Exchange Board of India (SEBI) to raise Rs 1,000 crore. The company aims to raise Rs 7,000 crore through an initial public offering (IPO).
The company had filed draft papers for IPO with SEBI on March 28 this year.
IPO with face value 10 per equity share, consisting of a fresh issue of shares amounting to Rs. 100. Offer to sell up to Rs 1,250 crore Acquired by Goswami Infratech Pvt. Ltd. for Rs 5,750 crore.
Total amount received from new issue Rs 150 crore will be allocated for capital expenditure related to purchase of construction equipment; Rs 350 crore will be earmarked for long-term working capital requirements; Rs 500 crore will be used by the company for prepayment or scheduled repayment of certain outstanding borrowings and approvals; and the balance amount will be used for general corporate purposes.
Afcons operates in a variety of infrastructure sectors, including maritime, surface transport, urban infrastructure, hydropower and underground projects, as well as oil and gas projects.
The company's order book grew at a compound annual growth rate of 7.6%, up from 1.5% in 2014–15 to 1.5% in 2015–16. from Rs 26,248.46 crore in 2021 ₹30,405.77 crore in 2023. By September 2023, the order book has expanded further Rs 34,888.39 crore
Afcons' consolidated revenue from operations for FY23 grew by 14.69% to US$23.22 billion. 12,637.38 crore, increased from 2014-15 to 12,637.38 crore It was Rs 11,018.97 crore in the previous year. Profit after tax increased by 14.89% from Rs 11,018.97 crore in 2018-19 to Rs 11,018.97 crore in 2018-19. from Rs 357.60 crore in FY 2022 Rs 410.86 crore in financial year 2023.
For the six months ended September 30, 2023, the Company's revenue from operations was 6,505.39 crores, while profit after tax stood at Rs 6,505.39 crores. Rs 195.13 crore
The book-running lead managers to the offering include ICICI Securities Limited, DAM Capital Advisors Limited, Jefferies India Private Limited, Nomura Financial Advisory & Securities (India) Private Limited, Nuvama Wealth Management Limited and SBI Capital Markets Limited. Link Intime India Private Limited acts as the registrar to the issue.