Afcons Infrastructure plans to raise up to ₹5,430 Crore via IPO

21 Oct 2024 , 10:08 AM

Afcons Infrastructure Ltd, part of the Shapoorji Pallonji group, plans to raise up to ₹5,430 Crore via an IPO on 25 October. The public offering includes both new shares and an offer for sale (OFS) by the promoter. The issue will close on October 29.

Afcons Infrastructure Ltd filed a red herring prospectus (RHP) with Sebi, indicating plans to raise up to ₹5,430 Crore through an IPO. The company plans to issue up to ₹1,250 Crore in new equity shares and sell up to ₹4,180 Crore through an offer for sale.

The selling shareholder will receive the money from the OFS, but Afcons will not receive any. Goswami Infratech Pvt Ltd, a promoter group firm, is selling shares via OFS.

Afcons Infrastructure plans to spend ₹80 Crore of the fresh share issuance proceeds for capital expenditure on building equipment. It would spend ₹320 Crore to cover long-term working capital requirements.

Approximately ₹600 Crore will be utilised to prepay or arrange repayment of a portion of outstanding loans. The remaining monies will be used for general corporate reasons.

Afcons Infrastructure is the flagship infrastructure, engineering, and building company of the Shapoorji Pallonji group, a diverse Indian conglomerate, with a 60-year history.

Afcons completed 79 projects in 17 countries with a total contract value of ₹56,305 Crore over the last 11 years and three months, concluding June 30, 2024.

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