MUMBAI: The Shapoorji Pallonji Group’s flagship engineering arm Afcons Infrastructure has received the market regulator Sebi’s nod for launching a Rs 7,000-crore initial share sale. Afcons had filed the IPO papers with Sebi on March 28.
The IPO, with a face value of Rs 10 per share, is a mix of fresh issue of shares of Rs 1,250 crore and an offer for sale of up to Rs 5,750 crore by Goswami Infratech.
The offer includes a reservation for subscriptions by eligible employees, according to the draft papers filed with the regulator.
The company said Rs 500 crore of the net proceeds from the fresh issue will be used for prepayment/scheduled repayment of a portion of debt; Rs 350 crore will be used for funding long-term working capital requirements; Rs 150 crore will be used for capital expenditure towards purchase of construction equipment and the rest will be used for general corporate purposes.
Afcons has carried out a wide range of complex and challenging engineering, procurement and construction projects both domestically and internationally over the last six decades. According to Fitch, it is recognized as one of the leading international infrastructure firms from the country based on international revenue for fiscal 2023.
Afcons operates across five major infrastructure business verticals -- marine and industrial 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 rails, bridges, flyovers, and elevated corridors; hydro and underground, comprising dams, tunnels, and water-related projects; and oil and gas, involving offshore and onshore projects
Its order book stood at Rs 30,405.77 crore in FY23, up from Rs 26,248.46 crore in FY21.
Afcons’ consolidated revenue increased 14.7 percent to Rs 12,637.38 crore in FY23 from Rs 11,018.97 crore in the previous fiscal from which it had earned Rs 410.86 crore in net income, up 5 percent from Rs 357.60 crore in FY22.