Desk
Share
Shapoorji Pallonji Group's infrastructure engineering and construction company Afcons Infrastructure Limited (AIL) is preparing to launch its Rs 5,430 crore IPO on October 25.
According to the red herring prospectus (RHP), the share sale will end on October 29 and bidding for anchor investors will open for a single day on October 24.
The company will announce the price band of the IPO next week. This IPO of Rs 5,430 crore will consist of fresh issuance of shares worth Rs 1,250 crore and sale of shares worth Rs 4,180 crore by promoter Goswami Infratech Private Limited.
The offer size has been reduced after raising pre-IPO funds. In the draft papers filed in March, the company had initially planned to raise Rs 7,000 crore.
Currently, the promoter and promoter group hold a 99% stake in Maharashtra-based Afcons Infrastructure. The company will use Rs 80 crore raised from the fresh issue to purchase construction equipment, Rs 320 crore for long-term working capital, Rs 600 crore to repay debt, and the rest for general corporate purposes.
Started in 1865, Shapoorji Pallonji Group (SP Group) is a large conglomerate that operates in multiple sectors like engineering, construction, infrastructure, real estate, water, energy, and financial services.
Afcons compares itself with listed industry peers such as Larsen & Toubro Limited (L&T), KEC International Limited, Kalpataru Project International Limited (KPIL), and Dilip Buildcon Limited (DBL).
ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets are the lead managers of this IPO.
--Advertisement--
