Afcons Infrastructure, part of the Shapoorji Pallonji Group, is set to launch its ₹5,430 crore initial public offering (IPO) from October 25-29, 2024. In a significant pre-IPO move, the company attracted investments totaling ₹2,896 crore from 29 prominent domestic and international investors by selling 6.25 crore equity shares (18.36% of its pre-IPO capital) at ₹463 per share. These shares were sold by the promoter, Goswami Infratech.
Key highlights of the pre-IPO investment:
- Gamnat Pte, managed by Singapore’s GIC, was the largest investor, acquiring ₹756 crore worth of shares.
- UAE-based Synergy Solutions Investments Holding and Enam Holdings (through various funds like Volrado Venture Partners Fund II and others) each invested ₹400 crore.
- Quant Mutual Fund and 360 ONE both invested ₹200 crore in Afcons.
- TIME Holdings and The Prudential Assurance Company (backed by M&G Plc) purchased ₹175 crore worth of shares each.
- Other investors included Discovery Global Opportunity (Mauritius) with ₹170 crores, SBI General Insurance, Artian Private Equity, Ashoka India Equity Investment Trust Plc, and Nuvama Crossover Opportunities Fund.
Additionally, Goswami Infratech sold 16.39 lakh equity shares valued at ₹71.67 crore to Afcons’ senior management, employees of the Shapoorji Pallonji Group, and other individual investors at prices ranging from ₹417 to ₹463 per share. In total, ₹2,967.65 crore was raised through the sale of 18.39 crore equity shares prior to the IPO. Following these transactions, Goswami Infratech will retain a 53.52% stake in the company.
According to the red herring prospectus filed on October 18, Afcons plans to raise ₹1,250 crore via a fresh issue and ₹4,180 crore through an offer-for-sale by Goswami Infratech. The fresh issue proceeds will be used for purchasing construction equipment, long-term working capital, debt repayment, and general corporate purposes.
Afcons, a leading engineering and construction firm, competes with major players like Larsen & Toubro, KEC International, Kalpataru Project International, and Dilip Buildcon. It reported strong financial performance for FY24, with a 9.5% increase in net profit to ₹449.7 crore and a 5% growth in revenue to ₹13,267.5 crore. The company also boasts an order book worth ₹31,747 crore.
The IPO’s merchant bankers include ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets.
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