MUMBAI: The Shapoorji Pallonji group’s flagship engineering arm Afcons Infrastructure has fixed the price band for its Rs 5,430 crore initial share sale at Rs 440-463 per share, which is opening on October 25.
In the run-up to the issue, which consists of Rs 1,250 crore of fresh issue and Rs 4,180 crore in offer for sale by promoters, Afcons had raised Rs 2,967 crore from the management, and individual and institutional investors.
The pre-IPO investors includes names like GIC Singapore, Enam Holdings of Akash Bhanshali, Synergy Capital, 360 One, M&G Investments, Think Investments, Discovery Capital Management, Artian Investment from ArcelorMittal, Madhusudan Kela, and White Oak among others, Subramanian Krishnamurthy, the executive vice-chairman and Paramasivan Srinivasan, managing director of Afcons told reporters here Monday.
Employees will get a Rs 44/share discount, the company added.
The selling shareholders in the Rs 4,180 crore OFS are the promoter entity Goswami Infratech. The other selling promoter groups are the parent Shapoorji Pallonji & Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce, which together own 99.5 per cent of Afcons and the remaining 1 per cent is held by public shareholders.
The proceeds from its fresh issuance will be used to the extent of Rs 80 crore for capex towards the purchase of construction equipment; Rs 320 crore for funding long-term working capital; Rs 600 crore for debt prepayment; and the rest for general corporate purposes.
Afcons has a legacy of 65 years and is the largest pureplay Indian EPC in the overseas market.
According to a Fitch report, Afcons is one of the country’s leading international infrastructure firms in the 2023 Engineering News-Record (ENR) ranking based on international revenue. It operates across five major infrastructure business verticals - marine and industrial, encompassing projects such as ports, harbours, dry docks, LNG tanks, and material handling systems; surface transport, including highways, interchanges, mining infrastructure, and railways; urban infrastructure covering metro works, bridges, flyovers, and elevated corridors; hydro and underground, comprising dams, tunnels, and water-related projects; and oil and gas, involving offshore and onshore projects in the oil and gas sector.
Some of its signature projects include the Chenab rail bridge in Jammu and Kashmir, which is the largest and the tallest single arch rail bridge in the world, the Atal tunnel in the Rohtang Pass, the country’s first underground metro in Kolkata, the Mumbai-Nagpur Expressway, the under construction 21 km tunnel of which 7 km is submarine as part of the Mumbai-Ahmedabad bullet train project and a marine bridge system in the Maldives connecting five of its most populous islands among others.
As June 2024, Afcons’ order book stood at Rs 31,747.43 crore.
Its revenue increased from Rs 12,637.38 crore in FY23 to Rs 13,267.50 crore in FY24 from which it earned respectively Rs 411 crore and Rs 450 crore in net income. For the three months ending June 2024, its revenue stood at Rs 3,154.4 crore, and profit after tax at Rs 91.6 crore.
In the pre-IPO, Goswami 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.
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.