Afcons Infrastructure’s ₹5,430 Cr IPO Launch Set for October 25 – Key Dates, Details & More

Shapoorji Pallonji Group’s Afcons Infrastructure Ltd (AIL) is set to launch its ₹5,430 crore IPO on October 25, 2024. The IPO will close on October 29, while anchor investors can place their bids on October 24, according to the company’s red herring prospectus (RHP).

The price range for the IPO will be announced next week. Afcons is offering ₹1,250 crore worth of new shares, along with an offer for sale (OFS) of up to ₹4,180 crore by its promoter, Goswami Infratech Private Limited.

Originally, the company aimed to raise ₹7,000 crore but reduced the offer size after securing funds through a pre-IPO placement.

Currently, the promoters hold a 99% stake in Afcons Infrastructure, which is based in Maharashtra. The company plans to use ₹80 crore from the new shares to purchase construction equipment, ₹320 crore for long-term working capital, ₹600 crore to repay debt, and the rest for general corporate purposes.

Afcons, part of the Shapoorji Pallonji Group (founded in 1865), operates across various sectors including engineering, construction, infrastructure, real estate, energy, and financial services. The company compares itself with competitors such as Larsen & Toubro (L&T), KEC International, Kalpataru Project International, and Dilip Buildcon.

The lead managers for the IPO include ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets.