Pallonji Group’s Afcons Rs 5,430-cr IPO opens on October 25

The issuer will announce the price band for the issue next week.
Pallonji Group’s Afcons Rs 5,430-cr IPO opens on October 25
Updated on
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MUMBAI: The Shapoorji Pallonji group's engineering arm Afcons Infrastructure has filed the red herring prospectus with the Registrar of Companies to raise Rs 5,430 crore via an initial public offering which is opening on October 25.

In the DRHP, the company had said it would seek to raise Rs 7,000 crore, but final filing has scaled down the issue size to Rs5,430-crore.

Afcons issue is a combination of fresh issue worth Rs 1,250 crore and an offer-for-sale worth Rs 4,180 crore by the promoter entity Goswami Infratech.

The other promoter groups are the parent Shapoorji Pallonji & Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce, which together own 99 percent in Afcons and the remaining 1 percent is held by public shareholders.

Issuer will announce the price band for the issue next week.

In the pre-IPO round last week, Goswami Infratech has transferred more than 6.25 crore equity shares to several marquee global and domestic investors, including Discovery Global Opportunity (Mauritius), Volrado Venture Partners Fund, Blue Lotus Investment Fund, Cohesion MK Best Ideas Sub-Trust, Gamnat, Prudential Assurance Company, Quant Mutual Fund, SBI General Insurance, Synergy Solutions Investments Holding, TIMF Holdings, Ashoka India Equity Investment Trust, Nuvama Crossover Opportunities Fund, Artian Capital, Ananta Capital Ventures Fund, and 360 One Special Opportunities Fund, according to the filing.

After this Goswami's shareholding in Afcons has come down to 53.52 percent from 71.87 percent earlier.

The engineering and construction company will use Rs 600 crore from the issue for debt repayment, Rs 320 crore for long-term working capital and Rs 80 crore to purchase construction equipment, and the rest of the fresh issue proceeds for general corporate purposes.

Since fiscal year 2013, Afcons has completed 79 projects worth Rs 56,305 crore across 17 countries. As of June 2024, it has 65 active or ongoing projects across 12 countries, valued Rs 31,747 crore.

On the financial front, the company has recorded net profit of Rs 449.7 crore for fiscal 2024, up 9.5 percent over fiscal 2023 from revenue of Rs 13,267.5 crore, which was 5 percent more than it had in fiscal 2023.

In the June 2024 quarter, net profit rose 0.7 percent to Rs 91.6 crore while revenue declined 0.5 percent to Rs 3,154.4 crore.

The other promoter groups are the parent Shapoorji Pallonji & Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce, which together own 99 per cent of Afcons. The remaining 1 per cent is held by the public shareholders.

The issuer will announce the price band for the issue next week.

In the pre-IPO round last week, Goswami Infratech transferred more than 6.25 crore equity shares to several marquee global and domestic investors, including Discovery Global Opportunity (Mauritius), Volrado Venture Partners Fund, Blue Lotus Investment Fund, Cohesion MK Best Ideas Sub-Trust, Gamnat, Prudential Assurance Company, Quant Mutual Fund, SBI General Insurance, Synergy Solutions Investments Holding, TIMF Holdings, Ashoka India Equity Investment Trust, Nuvama Crossover Opportunities Fund, Artian Capital, Ananta Capital Ventures Fund, and 360 One Special Opportunities Fund, according to the filing.

Goswami’s shareholding in Afcons has come down to 53.52 percent from 71.87 percent earlier.

The engineering and construction company will use Rs 600 crore from the issue for debt repayment, Rs 320 crore for long-term working capital, Rs 80 crore to purchase construction equipment and the rest of the fresh issue proceeds for general corporate purposes.

Since fiscal year 2013, Afcons has completed 79 projects worth Rs 56,305 crore across 17 countries. As of June 2024, it has 65 active or ongoing projects across 12 countries, valued at Rs 31,747 crore.

On the financial front, the company has recorded a net profit of Rs 449.7 crore for fiscal 2024, up 9.5 per cent over fiscal 2023 from revenue of Rs 13,267.5 crore, which was 5 per cent more than it had in fiscal 2023.

In the June 2024 quarter, net profit rose 0.7 per cent to Rs 91.6 crore while revenue declined 0.5 per cent to Rs 3,154.4 crore.

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