Afcons Infrastructure Ltd is set to raise up to ₹5,430 crore through its initial public offering (IPO). They plan to offer new shares worth ₹1,250 crore, while existing shareholders will sell shares worth ₹4,180 crore.
The money from the sale of existing shares will not go to Afcons but to the selling shareholders, specifically Goswami Infratech Pvt Ltd, part of the promoter group.
From the funds raised by the new shares, Afcons will spend ₹80 crore to buy new construction equipment. They will also allocate ₹320 crore to support long-term working capital. An additional ₹600 crore will be used to pay off some of their existing loans. The remaining funds will help with general company expenses.
Afcons Infrastructure is a top player in the construction and engineering sector, part of the Shapoorji Pallonji group, with over 60 years of experience. They have a strong track record of completing challenging projects both in India and abroad.
In the last 11 years and up to June 30, 2024, Afcons has completed 79 projects in 17 countries, with a total contract value of ₹56,305 crore. As of June 30, 2024, they have 65 ongoing projects in 12 countries, with a total order book of ₹31,747 crore.
Afcons works on various types of infrastructure projects, including:
- Marine and Industrial Projects: They build ports, dry docks, and gas storage tanks.
- Road and Transport Projects: They focus on highways, railways, and other transport systems.
- Urban Infrastructure: Their work includes metro systems, bridges, and flyovers.
- Hydro and Underground Projects: They construct dams, tunnels, and underground facilities.
- Oil and Gas Projects: Afcons is involved in both offshore and onshore oil and gas development.
This IPO marks an important step for Afcons as they continue to grow and contribute to India’s infrastructure development.
