Afcons Infrastructure IPO: Afcons Infrastructure, a major player in the construction and engineering sector, is set to launch its Initial Public Offering (IPO) on October 25, 2024. The bidding period for this ₹5,340 crore public issue will run until October 29. Here’s a breakdown of the IPO and why it has caught the attention of investors.
Key Highlights:
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IPO Details:
- The total issue size is ₹5,340 crore.
- It includes a fresh issue worth ₹1,250 crore and an Offer-for-Sale (OFS) of ₹4,180 crore by the promoter, Goswami Infratech.
- Price band: ₹440 to ₹463 per share.
- Minimum lot size: 32 equity shares.
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Anchor Investors:
- The anchor book opens on October 24.
- Notable investors include GIC Singapore, Enam Holdings, Synergy Capital, M&G Investments, and Discovery Capital Management.
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Company Background:
- Incorporated in 1959, Afcons Infrastructure is part of the Shapoorji Pallonji group.
- It specializes in marine, industrial, surface transport, urban infrastructure, hydro, and oil & gas projects.
- The company operates globally in Asia, Africa, and the Middle East.
- It has an impressive history of completing 76 projects in 15 countries, with a total contract value of ₹52,220 crore.
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Current Projects and Financials:
- Active projects: 67 across 13 countries, with an order book of ₹34,888 crore as of September 2023.
- Revenue (Q1 FY24): ₹3,213.47 crore; Net profit: ₹91.59 crore.
- Full-year revenue (FY24): ₹13,646.88 crore; Net profit: ₹449.76 crore.
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IPO Objectives:
The net proceeds from the IPO will be used for:
- Purchasing construction equipment.
- Funding long-term working capital needs.
- Repaying some outstanding borrowings.
- General corporate purposes.
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Employee Reservation and Retail Allocation:
- Shares worth ₹25 crore have been reserved for eligible employees at a discounted rate of ₹44 per share.
- Of the remaining issue, 50% is reserved for Qualified Institutional Bidders (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors.
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Listing Date and Lead Managers:
- Shares will list on both the BSE and NSE on November 4, 2024.
- Lead managers include ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, and SBI Capital Markets.
Afcons Infrastructure’s long-standing reputation and global presence, along with a strong order book, make this IPO an attractive opportunity for both institutional and retail investors.
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