Shapoorji Pallonji Group's Afcons Infrastructure Files Draft Red Herring Prospectus For ₹7,000 Cr IPO

Afcons Infrastructure Limited (AIL), a leading infrastructure engineering and construction company under the Shapoorji Pallonji group, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The IPO, valued at Rs 7,000 crore, includes a combination of fresh issue and offer for sale.

Offer Details

The IPO consists of a fresh issue of shares worth Rs 1,250 crore and an offer for sale of up to Rs 5,750 crore by Goswami Infratech Private Limited.

Additionally, eligible employees have a reserved subscription. A further issue of equity shares may be considered through a pre-IPO placement, reducing the fresh issue size if completed.

Allocation Breakdown

The offer follows a book-building process, with allocation proportions set as follows: up to 50 per cent to qualified institutional buyers, at least 15 per cent to non-institutional bidders, and a minimum of 35 per cent to retail individual bidders.

Financial Performance

Afcons reported a strong financial performance metrics, including the highest return on capital employed (ROCE) and return on equity (ROE) margins among its peers in India for the financial year 2023. The company's order book has shown consistent growth, reaching Rs 34,888.39 crore as of September 30, 2023.

Revenue from operations for the fiscal year 2023 increased by 14.69 per cent to Rs 12,637.38 crore, with a corresponding growth in profit after tax.

Lead Managers and Registrar

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 acting as book-running lead managers, with Link Intime India Private Limited appointed as the registrar of the issue.