Afcons Infrastructure Limited IPO is a book built issue of Rs 5,430.00 crores. The issue is a combination of fresh issue of 2.7 crore shares aggregating to Rs 1,250.00 crores and offer for sale of 9.03 crore shares aggregating to Rs 4,180.00 crores.
ABOUT COMPANY:
Afcons Infrastructure Ltd. (AIL) is the flagship infrastructure, engineering and construction company of the Shapoorji Pallonji group (i.e., the group’s leading engineering and construction company), a diversified Indian conglomerate, and have a legacy of over six decades. Both in India and abroad, it has a proven track record of successfully completing a large number of intricate, difficult, and distinctive engineering, procurement, and construction (“EPC”) projects. According to the 2023 ENR (Engineering News-Record, US) Top foreign Contractors rankings, which are based on International Revenue for the Financial Year 2023, it is among the biggest foreign infrastructure firms in India, according to the Fitch Report.
The firm has successfully finished 79 projects in 17 countries during the course of the past 11 fiscal years and the three months that concluded on June 30, 2024, with a total historical executed contract value of Rs. 563.05 billion. Its order book totalled Rs. 317.47 billion as of June 30, 2024, with 65 active projects (i.e., ongoing projects) spread across 12 countries. It had the highest ROCE and EBITDA margins, the second-highest ROE and PAT margins, and the fastest-growing PAT between the Financial Years 2022 and 2024 among the major infrastructure construction companies in India examined in the Fitch Report (Source: Fitch Report).
Its global reach has grown over time, especially in Asia, Africa, and the Middle East. In India and around the world, it has worked on several intricate, difficult, one-of-a-kind, and “first of its kind” infrastructure projects (Source: Fitch Report). It also benefits from the Shapoorji Pallonji Group’s strong parental ties. With more than 150 years of history, the Shapoorji Pallonji Group’s solid reputation, global reach, and wealth of industry knowledge help AIL expand its operations and business. It also has access to the network of the Shapoorji Pallonji Group, which facilitates information exchange, business growth possibilities, and strategic partnerships. Additionally, the board of directors and the management team, which consists of five key managerial personnel and nineteen senior management personnel, provide strategic direction for the business. With an average of 23 years at AIL, its top management staff has an average of 35 years of experience.
The organisation has created a project management system that facilitates effective planning, monitoring, control, and on-time delivery of the infrastructure projects it undertakes thanks to its vast and varied expertise and methodical knowledge management techniques. The company’s distinction through the MIKE (Most Innovative Knowledge Enterprise) award at the global and Indian levels reflects its ongoing pursuit of excellence in knowledge management. The International Global MIKE Study Group, which is made up of global authorities on creative methods and efficient knowledge management, bestows this honour. In 2023, the Indian government also granted AIL the designation of Five Star Export House in compliance with the Foreign Trade Policy 2023 requirements.
It is committed to establishing a sustainable and accountable approach to operations and incorporating environmental, social, and governance (“ESG”) best practices into business. To monitor its environmental impact, it employs forty-one environmental auditors. Additionally, the organisation employs more than 250 health, safety, and environment (“HSE”) experts, including 31 environmental specialists. More than 65 percent of our team’s members hold graduate degrees in safety and engineering. With a commitment to continue decreasing energy consumption, it has lowered its overall energy consumption from 2.70 million gigajoules for the Financial Year 2023 and 2.76 million gigajoules for the Financial Year 2022 to 2.42 million gigajoules for the Financial Year 2024. Additionally, it recycled more than 27% of the wastewater that was released at project locations throughout the fiscal year.
AIL is one of the leading infrastructure construction companies involved in the execution of large and complex projects both in India and overseas (Source: Fitch Report). It focuses on large, complex, and high-value projects and has a strong track record in efficient project management, execution and on-time delivery of projects across verticals and geographies, with a substantial majority of projects being executed ahead of or on schedule. The company has undertaken many complex, challenging, unique and ‘first of its kind’ infrastructure projects in India and the rest of the world (Source: Fitch Report). According to the Fitch Report, the company has a transnational presence in almost the entire spectrum of infrastructure activities. In the 2023 ENR (Engineering News-Record, US) Top International Contractors rankings, AIL was the 10th largest international marine and port facilities contractor in the world and the only Indian company in the top 25, the 12th largest contractor in the bridges segment and the only Indian company in the top 25, the 42nd largest contractor in the transportation segment and the only Indian company in the top 50, and the 18th largest contractor in the transmission lines and aqueducts segment, in each case based on International Revenue for the Financial Year 2023 (Source: Fitch Report).
As of June 30, 2024, its order book stood at Rs. 31747.43 cr. As of the said date, it had 3972 employees on its payroll and additional 26920 contract workers on various projects. According to the management, it has specialized in many unique projects and has also completed many of them on dot or even before and has earned early completion incentives. With more influx of orders, its order book stands above Rs. 40+K cr. as of September 30, 2024.
Objects of the Issue (Afcons Infrastructure IPO Objectives)
The Company proposes to utilise the Net Proceeds towards funding the following objects
- Capital expenditure towards purchase of construction equipment
- Funding long term working capital requirements
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the Company
- General corporate purpose
Afcons Infrastructure IPO Details
| IPO Date | October 25, 2024 to October 29, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹440 to ₹463 per share |
| Lot Size | 32 Shares |
| Total Issue Size | 117,278,618 shares (aggregating up to ₹5,430.00 Cr) |
| Fresh Issue | 26,997,840 shares (aggregating up to ₹1,250.00 Cr) |
| Offer for Sale | 90,280,778 shares of ₹10 (aggregating up to ₹4,180.00 Cr) |
| Employee Discount | Rs 44 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 340,738,269 |
| Share holding post issue | 367,736,109 |
Afcons Infrastructure IPO Timeline (Tentative Schedule)
Afcons Infrastructure IPO opens on October 25, 2024, and closes on October 29, 2024.
| IPO Open Date | Friday, October 25, 2024 |
| IPO Close Date | Tuesday, October 29, 2024 |
| Basis of Allotment | Wednesday, October 30, 2024 |
| Initiation of Refunds | Thursday, October 31, 2024 |
| Credit of Shares to Demat | Thursday, October 31, 2024 |
| Listing Date | Monday, November 4, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 29, 2024 |
Afcons Infrastructure IPO Reservation
Afcons Infrastructure IPO offers 9,63,35,319 shares. 23,47,733 (2.44%) to QIB, 1,75,10,799 (18.18%) to NII, 4,08,58,531 (42.41%) to RII, 5,96,659 (0.62%) to employees and 3,50,21,597 (36.35%) to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 3,50,21,597 (36.35%) | NA |
| QIB Shares Offered | 23,47,733 (2.44%) | NA |
| NII (HNI) Shares Offered | 1,75,10,799 (18.18%) | |
| bNII > ₹10L | 1,16,73,866 (12.12%) | 26,057 |
| sNII < ₹10L | 58,36,933 (6.06%) | 13,028 |
| Retail Shares Offered | 4,08,58,531 (42.41%) | 12,76,829 |
| Employee Shares Offered | 5,96,659 (0.62%) | NA |
| Total Shares Offered | 9,63,35,319 (100%) |
Afcons Infrastructure IPO Timeline (Tentative Schedule)
Afcons Infrastructure IPO opens on October 25, 2024, and closes on October 29, 2024.
| IPO Open Date | Friday, October 25, 2024 |
| IPO Close Date | Tuesday, October 29, 2024 |
| Basis of Allotment | Wednesday, October 30, 2024 |
| Initiation of Refunds | Thursday, October 31, 2024 |
| Credit of Shares to Demat | Thursday, October 31, 2024 |
| Listing Date | Monday, November 4, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 29, 2024 |
Afcons Infrastructure IPO Prospectus
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- › Anchor Investors in Afcons Infrastructure IPO
Afcons Infrastructure Limited Contact Details
Afcons Infrastructure Limited
Afcons House, 16 Shah Industrial Estate,
Veera Desai Road
ndheri (West), Mumbai,-400053
Phone: 022 67191214
Email: gaurang@afcons.com
Website: https://www.afcons.com/en
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