NEW DELHI: Afcons Infrastructure Ltd is set to launch its initial public offering (IPO) on October 25, aiming to raise up to Rs 5,430 crore, according to the red herring prospectus (RHP) submitted to Sebi.
The IPO of the Shapoorji Pallonji group company will include both fresh shares, worth up to Rs 1,250 crore and an offer for sale (OFS) of up to Rs 4,180 crore by the promoter.The bidding will close on October 29.
The proceeds from the OFS will be received by the selling shareholder, Goswami Infratech Pvt Ltd, a promoter group company, and Afcons will not benefit from these funds.
Afcons Infrastructure will use Rs 80 crore from the fresh issue proceeds for capital expenditure towards the purchase of construction equipment, Rs 320 crore for funding long-term working capital requirements, and around Rs 600 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings. The remaining funds will be utilized for general corporate purposes.
In the past 11 financial years and the three-month period ended June 30, 2024, Afcons has successfully completed 79 projects across 17 countries, with a total historic executed contract value of Rs 56,305 crore. As of June 30, 2024, the company had 65 active projects across 12 countries, amounting to an order book of Rs 31,747 crore.
Afcons Infrastructure’s projects encompass five major infrastructure business verticals: marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas.
These verticals cover a wide range of projects, including ports, harbor jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks, material handling systems, highways, roads, interchanges, mining-related infrastructure, railways, elevated and underground metro works, bridges, flyovers, elevated corridors, dams, barrages, tunnels, underground works, water and irrigation, and both offshore and onshore oil and gas projects.
