Afcons Infrastructure Announces IPO Price Band
Mumbai-based Afcons Infrastructure Ltd, a subsidiary of the Shapoorji Pallonji Group, has revealed the price band for its upcoming Initial Public Offering (IPO) at Rs 440-463 per share. The IPO, valued at Rs 54.3 billion, is expected to open for subscription on October 25 and close on October 29. The offering involves a fresh issue of shares worth up to Rs 12.5 billion and an offer for sale of shares worth Rs 41.8 billion.
Allocation of Funds
Afcons Infrastructure has disclosed the allocation of funds from the fresh issue. Out of the total, Rs 800 million will be directed towards capital expenditure for purchasing construction equipment, while Rs 3.2 billion will be allocated to fund long-term working capital needs. Additionally, Rs 6 billion will be utilized for the prepayment or repayment of outstanding loans.
Strong Participation in Pre-IPO Round
Before the IPO, Afcons Infrastructure attracted significant interest from renowned investors in its pre-IPO financing round. Well-known names such as GIC Singapore, Enam Holdings (Akash Bhanshali), Synergy Capital, 360 One, M&G Investments, Think Investments, Discovery Capital Management, Artian Investment ArcelorMittal, Madhusudan Kela, and White Oak participated in the funding round. This strong participation serves as an endorsement of the company’s prospects and growth potential.
Key Verticals and Operations
Afcons Infrastructure operates in five key verticals, which are:
1. Marine and Industrial Projects: The company has a strong presence in executing marine-based and industrial projects, catering to various industries’ needs.
2. Surface Transport: Afcons Infrastructure specializes in developing surface transport infrastructure, including roads, highways, and bridges for efficient transportation.
3. Urban Infrastructure: Urban infrastructure projects such as smart cities and urban renewal initiatives are among the company’s areas of expertise.
4. Hydro and Underground Works: Afcons Infrastructure undertakes hydro and underground construction works suitable for water resource projects and underground facilities.
5. Oil and Gas Infrastructure: The company has a solid track record in developing infrastructure for the oil and gas sector, supporting the energy industry.
Conclusion
With a price band in place and notable investors’ participation in the pre-IPO funding round, Afcons Infrastructure Ltd is set for an exciting IPO round. The funds raised from the IPO will further boost the company’s capital and support its future growth plans as it continues to operate across various verticals, including marine and industrial projects, surface transport, urban infrastructure, hydro and underground works, and the oil and gas sector. The IPO is an opportunity for investors to be part of Afcons Infrastructure’s journey in building critical infrastructure for the nation.
