Shares of Afcons Infrastructure, a key engineering and building subsidiary of the Shapoorji Pallonji Group, are set to listing on the bourses in the present day at an IPO value of Rs 463, the upper finish of its Rs 440-463 value band. The IPO noticed robust demand from institutional buyers, serving to it shut with an total subscription of two.63 instances. Nevertheless, the retail section fell barely quick, with a subscription charge of 0.94 instances, indicating ninety-four p.c participation. The Certified Institutional Purchaser (QIB) class was subscribed 3.79 instances, whereas non-institutional buyers (NIIs) and staff subscribed at 5.05 instances and 1.67 instances, respectively.
The Rs 5,430-crore providing included a recent challenge of Rs 1,250 crore and an offer-for-sale of Rs 4,180 crore from the promoters. The corporate raised Rs 1,621 crore forward of the IPO by anchor buyers, distributing 3.5 crore shares at Rs 463 per share. Notable establishments like GIC, HDFC MF, ICICI Pru AMC, and BlackRock, amongst others, participated within the anchor spherical, collectively securing round a 3rd of the anchor guide measurement.
Afcons plans to allocate Rs 80 crore from the recent challenge in direction of capital expenditure for brand new building tools. One other Rs 320 crore is put aside to fund its long-term working capital necessities, whereas Rs 600 crore will likely be used to repay or prepay a part of its excellent debt. The rest will likely be directed towards basic company bills, strengthening Afcons’ monetary stability and undertaking capability.
Afcons Infrastructure operates in 5 key segments: Marine and Industrial, Floor Transport, City Infrastructure, Hydro and Underground, and Oil and Fuel. The Marine and Industrial division focuses on large-scale port and LNG infrastructure, whereas Floor Transport addresses freeway and railway initiatives. City Infrastructure covers metro building and bridges, and Hydro and Underground focuses on dam and tunnel building. Lastly, the Oil and Fuel section handles offshore and onshore initiatives, underscoring Afcons’ numerous capabilities throughout India’s infrastructure panorama.
The IPO marks a major milestone for Afcons because it seeks to boost its undertaking portfolio, strengthen its monetary footing, and scale operations throughout its numerous infrastructure domains.