Afcons Infrastructure Limited’s Initial Public Offering to open on Friday, October 25, 2024, price band set at ₹440/- to ₹463/- per Equity Share

Mumbai, October 21, 2024: Afcons Infrastructure Limited, the flagship infrastructure, engineering and construction company of the Shapoorji Pallonji group, has fixed the price band of ₹440/- to ₹463/- per Equity Share of face value ₹10/- each for its maiden initial public offer.

Last week, Afcons Infrastructure raised Rs 2,967 crore from the company’s management, individual and institutional investors in a pre-IPO placement. The pre-IPO book included names like GIC Singapore, Enam Holdings (Akash Bhanshali), Synergy Capital, 360 One, M&G Investments, Think Investments, Discovery Capital Management, Artian Investment from ArcelorMittal, Madhusudan Kela, White Oak and more.

The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Friday, October 25, 2024, for subscription and close on Tuesday, October 29, 2024. Investors can bid for a minimum of 32 Equity Shares and in multiples of 32 Equity Shares thereafter. A discount of ₹44 per equity share is being offered to eligible employees bidding in the employee reservation portion.

The IPO is a mix of fresh issue of up to Rs 1250 crore and an offer of sale up to Rs 4180 crore.

The proceeds from its fresh issuance will be utilized to the extent of Rs 80 crore for capital expenditure towards purchase of construction equipment; Rs 320 crore for funding long term working capital requirements; Rs 600 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the company; and general corporate purposes.

Afcons Infrastructure Limited is an Indian conglomerate with a rich history spanning over six decades. The company has a proven track record of successfully delivering a wide range of complex and challenging engineering, procurement, and construction (EPC) projects both domestically and internationally. According to the Fitch Report, Afcons is recognized as one of India’s leading international infrastructure firms, as per the 2023 rankings by Engineering News-Record (ENR) based on international revenue for the financial year 2023.

Afcons operates across five major infrastructure business verticals:

The company has a strong international presence across various infrastructure sectors, as highlighted in the 2023 ENR rankings. Afcons ranks among the top international contractors globally in marine and port facilities, bridges, transportation, and transmission line segments based on international revenue for the financial year 2023, according to the Fitch Report.

Afcons has a history of completing projects ahead of schedule, including notable ones like the Jammu Udhampur Highway Project, Nagpur Metro Reach 3, and Agra Lucknow Expressway. As of June 30, 2024, Afcons is actively involved in 79 active projects across 17 countries.

As of June 30, 2024, Afcons Infra’s order book stood at ₹31,747.43 crore.

AIL’s revenue from operations increased from ₹12,637.38 crore in the financial year 2023 to ₹13,267.50 crore in the financial year 2024. Profit after tax grew ₹449.74 crore in fiscal 2024 from ₹410.86 crore in fiscal 2023. Among large infrastructure construction companies in India analysed in the Fitch Report, Afcons has the highest ROCE and EBITDA margins and the second highest ROE and PAT margins for the Financial Year 2024, and the PAT has grown at the fastest rate between the Financial Years 2022 and 2024.

For the three months ended June 30, 2024, revenue from operations stood at Rs 3,154.36 crore, and profit after tax stood at Rs 91.59 crore.

ICICI Securities Limited, DAM Capital Advisors Limited, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are book running lead managers, and Link Intime India Private Limited is the registrar of the issue.

The offer is being made through the book-building process, wherein not more than 50% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.

Issue Size of the IPO based on the upper and lower end of the price band