Afcons Infrastructure Limited IPO: Everything You Need to Know About the Upcoming Public Offering.
Table of Contents
1. Afcons Infrastructure Limited IPO – IPO Size
The Afcons Infrastructure Limited IPO, valued at Rs 7,000-8,000 crore, is anticipated to hit the market in the second half of October. This offering is particularly important for promoter Goswami Infratech (GIPL), part of the SP Group, as it aims to meet its commitments to bondholders. The upcoming IPO represents a significant step for Afcons, highlighting its growth potential and financial strategy.
The Afcons Infrastructure Limited IPO will consist of both a fresh issue and an offer for sale. The fresh issue is expected to raise up to ₹1,250 crore, providing essential capital for the company’s growth and expansion initiatives. Additionally, there will be an offer for sale amounting to ₹5,750 crore, allowing existing shareholders to divest part of their holdings.
The objectives of the fresh IPO issue as below:
- Debt repayment
- Purchase construction equipment
- Meet working capital requirements.
Note : All the information provided on the basis of DRHP dated 24th March 2024 and Financials ended 30.09.2023.
Afcons Infrastructure Limited IPO may review its public offering and share RHP to SEBI. The RHP would include the latest financials (31.03.2024), Issue size and issue structure.
2. Afcons Infrastructure Limited IPO – IPO Key Dates
Afcons Infrastructure IPO will open for subscription on Friday, October 25, 2024, and close on Tuesday, October 29, 2024. The allotment date is set for Wednesday, October 30, 2024, with the company expected to list on the stock exchange by Monday, November 4, 2024.
| IPO Open Date | Friday, October 25, 2024 |
| IPO Close Date | Tuesday, October 29, 2024 |
| Basis of Allotment | Wednesday, October 30, 2024 |
| Listing Date | Monday, November 4, 2024 |
3. Afcons Infrastructure Limited IPO – About the Company
Afcons Infrastructure IPO has a rich history that began in 1959 when it was founded as a partnership between Rodio Foundation Engineering Limited from Switzerland and Hazarat & Company in India, operating under the name “Rodio Foundation Engineering Limited and Hazarat & Company.” This partnership was officially registered in Bombay in 1961.
In 1976, the firm transitioned into a private company called “Asia Foundations and Constructions Private Limited.” A year later, it took over the operations of the original partnership, becoming a running concern. With this shift, it was designated as a deemed public limited company.
The journey continued with a name change to “Asia Foundations and Constructions Limited” and, in 1996, to “Afcons Infrastructure Limited.” This rebranding marked a new chapter, and by 1997, the company had officially become a public limited company. Today, Afcons stands as a testament to decades of growth and transformation in the infrastructure sector.
4. Afcons Infrastructure Limited IPO – Journey Since 1959
Estbalishment: Afcons Infrastructure Limited, Established in 1959 as a partnership between Rodio Foundation Engineering Limited (Switzerland) and Hazarat & Company (India) under the name “Rodio Foundation Engineering Limited and Hazarat & Company.”
Registration: Registered as a partnership firm on July 27, 1961, under the Indian Partnership Act, 1932.
Incorporation: Became a private company, “Asia Foundations and Constructions Private Limited,” on November 22, 1976, under the Companies Act, 1956.
Business Transfer: On March 22, 1977, the business of the original partnership was transferred to the newly incorporated company.
Private to Public Limited: Transitioned to a deemed public limited company, changing its name to “Asia Foundations and Constructions Limited.”
Rebranding: Renamed “Afcons Infrastructure Limited” during an extraordinary general meeting on July 25, 1996; new certificate of incorporation issued on August 14, 1996.
Public Company Status: Converted from a deemed public company to a public limited company on November 4, 1997, with a new name change certificate issued on November 11, 1997.
5. Afcons Infrastructure Limited IPO – Business
Afcons Infrastructure the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group, a diversified Indian conglomerate, and have a legacy of over six decades.
Afcons Infrastructure IPO have a strong track record of executing numerous complex, challenging and unique EPC projects both within India and internationally.
According to the Fitch Report, Afcons Infrastructure are one of India’s largest international infrastructure companies, as per the 2023 ENR (Engineering News-Record, US) Top International Contractors rankings, based on International Revenue for the Financial Year 2023.
During the period comprising the last ten financial years and the six month period ended September 30, 2023, Afcons Infrastructure have successfully completed 76 projects across 15 countries with a total historic executed contract value of ₹522.20 billion.
As of September 30, 2023, Afcons Infrastructure have 67 active projects across 13 countries, aggregating to an order book of ₹348.88 billion. Among large infrastructure construction companies in India analysed in the Fitch Report, Afcons Infrastructure had the highest ROCE and ROE margins for the Financial Year 2023 (Source: Fitch Report).
Over the years, we have expanded our presence globally and in particular across Asia, Africa and the Middle East. We have undertaken many complex, challenging, unique and ‘first of its kind’ infrastructure projects in India and the rest of the world (Source: Fitch Report).
6. Afcons Infrastructure Limited IPO – Financials
| Particulars | As of six month period ended September 30, 2023 | 31.03.2023 | 31.03.2022 | 31.03.2021 |
| Order Book (₹ in million) | 348,883.90 | 304,057.70 | 328,048.40 | 262,484.60 |
| Domestic Order Book (₹ in million) | 260.930.70 | 212,459.40 | 212,459.40 | 191,204.50 |
| Domestic Order Book (%) | 74.79% | 69.87% | 71.06% | 72.84% |
| Overseas Order Book (₹ in million) | 87,953.20 | 91,598.30 | 94,923.00 | 71,280.20 |
| Overseas Order Book (%) | 25.21% | 30.13% | 28.94% | 27.16% |
| Total Income (₹ in million) | 66,553.51 | 128,440.90 | 112,695.49 | 95,211.24 |
| Profit After Tax (PAT) (₹ in million) | 1,951.27 | 4,108.60 | 3,576.05 | 1,699.07 |
| Total Equity (₹ in million) | 33,535.90 | 31,757.18 | 27,120.80 | 23,900.23 |
| Total Debt (₹ in million) | 28,439.21 | 15,628.16 | 15,552.01 | 15,885.19 |
| Debt to Equity | 0.85 | 0.49 | 0.57 | 0.66 |
| Return on Equity (ROE) (%) | 12.58% | 13.96% | 14.02% | 7.33% |
| Return on Capital Employed (ROCE) (%) | 17.06% | 20.04% | 17.30% | 16.50% |
| Earnings Per Share (₹) | 5.73 | 12.06 | 10.49 | 4.99 |
| Net worth (in ₹ million) | 33,327.08 | 31,550.64 | 26,910.30 | 23,694.65 |
| Net asset value per share (₹) | 97.81 | 92.59 | 78.98 | 69.54 |
| Return on net worth | 5.86 | 13.02 | 13.29 | 7.17 |
7. Afcons Infrastructure Limited IPO – Order Book
The Afcons Infrastructure Limited IPO is generating significant interest, reflecting the company’s extensive capabilities across various sectors. With a solid foundation in marine and industrial surface transport, Afcons is a key player in developing vital urban infrastructure, including both underground and elevated metro systems. Their expertise also extends to constructing elevated corridors and bridges, which are crucial for modern transit solutions. Furthermore, Afcons is involved in hydro and underground projects, as well as oil and gas initiatives, making it a versatile contender in the infrastructure landscape. For investors, the Afcons Infrastructure Limited IPO presents an exciting opportunity to engage with a company poised for growth in an ever-evolving industry.
| Sr. No. | Business Vertical | Order Book Value (₹ million) | Percentage of Order Book (%) |
| 1 | Marine and Industrial | 27,894.14 | 8.00% |
| 2 | Surface Transport | 35,690.55 | 10.23% |
| 3 | Urban Infrastructure | ||
| – Underground and elevated metro | 130,512.96 | 37.41% | |
| – Elevated corridors and bridges | 44,018.58 | 12.62% | |
| 4 | Hydro and Underground | 90,558.98 | 25.96% |
| 5 | Oil and Gas | 20,208.70 | 5.79% |
| Total | 348,883.91 | 100.00% |
8. Afcons Infrastructure Limited IPO – Clients
The Afcons Infrastructure Limited IPO is garnering significant attention, thanks in part to its diverse clients, which includes government bodies, multilateral organizations, and private companies. With a solid reputation for delivering large-scale infrastructure projects, Afcons has become a trusted partner for government agencies looking to enhance public works. Their collaborations with multilateral organizations highlight their ability to tackle complex challenges on a global scale, while their work with private clients showcases their versatility and commitment to quality. As the IPO approaches, investors can feel confident knowing they are engaging with a company that has strong relationships across various sectors and a proven track record of success in infrastructure development.
| Sr. No. | Type of Client | Order Book Value (₹ million) | Percentage of Order Book (%) |
| 1. | Government | 238,723.54 | 68.42% |
| 2. | Multilateral | 75,301.75 | 21.58% |
| 3. | Private | 34,858.62 | 9.99% |
| Total | 348,883.91 | 100.00% |
9. Afcons Infrastructure Limited IPO – Lead Managers
The Afcons Infrastructure Limited IPO is backed by a strong lineup of lead managers, each bringing their expertise to ensure a smooth and successful launch. Here’s a look at who’s involved:
- ICICI Securities Limited
- Nuvama Wealth Management Limited
- SBI Capital Markets Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- Jefferies India Private Limited
- DAM Capital Advisors Limited
Disclaimer: No content on this website should be treated as investment advice. All the content offered on the website is for informational purposes only. Please contact your adviser before making an investment.
You may also read
https://thebalancedportfolio.com/manba-finance-ipo