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Afcons IPO Introduction
Afcons Infrastructure is set to roll out a Rs 5,430 crore book. This IPO subscription is an amalgamation of a fresh issue of Rs 1,250 crore (2.7 crore shares) and an offer-for-sale of Rs 4,180 crore (9.03 crore shares). The firm will be listed on both BSE and NSE.
Retail investors need to invest a minimum of Rs 14,816. Small NII investors require a minimum investment of Rs 207,424 for 448 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,007,488 for 2,176 shares, which is 68 lots.
Link Intime India Pvt Ltd is the registrar to the issue. ICICI Securities Ltd, Dam Capital Advisors Ltd, Jefferies India Pvt Ltd, Nomura Financial Advisory And Securities (India) Pvt Ltd, Nuvama Wealth Management Ltd and SBI Capital Markets Ltd are the book running lead managers in this IPO.
Afcons Infrastructure Ltd IPO GMP
The most recent GMP of the IPO is Rs 27, as of 27th October, 2024 9:45 AM. The IPO has a price band of Rs 486. The estimated listing price for Afcons Infrastructure Ltd is Rs 490, reflecting a potential gain of 5% per share.
Afcons Infrastructure Ltd IPO Company Details
Established in 1959 with over 60 years of experience, Afcons Infrastructure Limited is one of the leading engineering and construction companies under the Shapoorji Pallonji group.
As of 30th September 2023, the company has completed 76 orders across 15 countries with a total contract value of Rs 522.20 billion. They are on an active works order strength of 67 projects across 13 countries. Out of that, an order book of Rs 348.88 billion stands with them. They are spread across all of Asia, Africa, and the Middle East.
Afcons has five key infrastructure business areas:
- Marine and Industrial: Includes ports, jetties, LNG tanks, dry docks, and material handling systems.
- Surface Transport: Covers highways, roads, railways, and mining infrastructure.
- Urban Infrastructure: Focuses on metro works, bridges, and flyovers.
- Hydro and Underground: Involves dams, tunnels, underground works, and water/irrigation projects.
- Oil and Gas: Handles both offshore and onshore oil and gas projects.
Afcons Infrastructure Ltd IPO Details
| Afcons Infrastructure Ltd IPO Opening Date and Closing Date | 25th October to 29th October |
| Afcons IPO Face Value | Rs 10 per share |
| Price Band | Rs 440 to Rs 463 per share |
| Afcons IPO Lot Size | 32 Shares |
| Total Issue Size | 117,278,618 shares (aggregating up to Rs 5,430 Cr) |
| Fresh Issue | 26,997,840 shares (aggregating up to Rs 1,250 Cr) |
| Offer for Sale | 90,280,778 shares (aggregating up to Rs 4,180 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 340,738,269 |
| Shareholding Post Issue | 367,736,109 |
| Basis of Allotment | Wednesday, 30th October, 2024 |
| Refund Initiation | Thursday, 31st October, 2024 |
| Credit of Shares in Demat | Thursday, 31st October, 2024 |
| Afcons Listing Date | Monday, 4th November, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 29th October, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Afcons Infrastructure IPO Lot Size, Shares, and Their Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 32 | Rs 14,816 |
| Retail (Max) | 13 | 416 | Rs 192,608 |
| S-HNI (Min) | 14 | 448 | Rs 207,424 |
| S-HNI (Max) | 67 | 2,144 | Rs 992,672 |
| B-HNI (Min) | 68 | 2,176 | Rs 1,007,488 |
Afcons Infrastructure Ltd IPO Shares Offered to Investors:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Afcons Infrastructure Ltd IPO Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 16,233.64 Cr. | Rs 14,301.25 Cr. |
| Revenue | Rs 13,646.88 Cr. | Rs 12,844.09 Cr. |
| Profit After Tax | Rs 449.76 Cr. | Rs 410.86 Cr. |
| Net Worth | Rs 3,575.05 Cr. | Rs 3,155.06 Cr. |
| Reserves and Supplies | Rs 3,255.22 Cr. | Rs 2,653.75 Cr. |
| Total Borrowing | Rs 2,455 Cr. | Rs 1,562.82 Cr. |
Should You Invest in the Afcons Infrastructure IPO?
Financial Performance:
Revenue: The company generated Rs 3,213.47 crore in revenue during the period ended on 30th June, 2024.
Profit After Tax (PAT): The company earned a profit of Rs 91.59 crore after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 3,662.25 crore.
Financial Position:
Assets: The company’s total assets amounted to Rs 17,184.58 crore.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 3,342.52 crore.
Total Borrowing: The company has borrowed a total of Rs 3,365.1 crore.
Afcons Infrastructure IPO Key Performance Indicators (KPI) and their values:
The market capitalisation of Afcons Infrastructure Ltd IPO is Rs 17026.18 crore. As of 30th June, KPI and their values are:
| KPI | Values |
| Return on Equity (ROE) | 10.55% |
| Return on Capital Employed (ROCE) | 14.89% |
| Return on Net Worth (RoNW) | 2.50% |
| Price to Book Value (P/BV) | 4.31 |
| Debt/Equity | 0.91 |
| PAT Margin (%) | 2.85 |
Objectives of Afcons Infrastructure Ltd IPO
The company plans to use the net proceeds for the following purposes:
- Purchasing construction equipment.
- Funding long-term working capital needs.
- Repaying part of its outstanding borrowings.
- General corporate purposes.
Some major risks associated with the Afcons Infrastructure Ltd IPO are:
- Despite the hope of debt reduction potential through the IPO, Afcons has a high amount of outstanding debt. That would be a significant risk if revenue growth were to slow up.
- The infrastructure industry is characteristically cyclical in nature and depends a lot on government policies and economic conditions. A lower award of projects would affect the revenue collections of the company.
- Afcons faces competition from major players in the infrastructure sector, both in India and globally, making innovation and cost control essential to maintain a competitive edge.
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Afcons IPO FAQs
What is the price band of Afcons Infrastructure’s IPO?
Price band has been fixed at Rs 440 and Rs 463 per share.
What is the retail investor quota of Afcons Infrastructure’s IPO?
A minimum of 35% shares shall go to the retail investors.
Where can I track Afcons Infrastructure’s stock performance?
You can track it on Unicorn Signals after listing.
How can I apply for Afcons Infrastructure’s Initial Public Offer?
Through your demat account or through your bank/financial institution during the IPO period.
When is the Last Date of IPO subscription for Afcons Infrastructure?
The cut-off time is on 29th October, 2024, by 5 PM; however, most brokers do not take any more applications after 1-3 PM.
