Afcons file papers for Rs 7,000-cr fund raise

Shapoorji Pallonji Group’s flagship infrastructure engineering and construction company Afcons Infrastructure Ltd (AIL) has filed draft red herring prospectus to raise Rs 7,000 crore through an initial public offering (IPO).

The is planning to raise Rs 1,250 crore through fresh sale of shares and an offer for sale (OFS) of up to Rs 5,750 crore by promoter Goswami Infratech Private Limited, according to the DRHP filed with markets regulator Sebi.

Currently, promoter and promoter group entities own 99.48 per cent stake in Afcons Infrastructure.
Moreover, the company may consider raising up to Rs 250 crore in the “pre-IPO placement” round.  If such placement is completed, the fresh issue size will be reduced.

The group company Afcons operates across five major infrastructure business verticals — marine and industrial, surface transport, urban infrastructure, hydro and underground, oil and gas. In the last 10 financial years, the company has completed 76 projects across 15 countries with a total contract value of Rs 52,220 crore, according to the DRHP.

AIL’s order book has increased at a CAGR of 7.6 per cent from Rs 26,249 crore in the financial year 2021 to Rs 30,406 crore in the financial year 2023. As of September 30, 2023, it stood at Rs 34,888 crore.

The company’s consolidated revenue from operations increased 14.7 per cent to Rs 12,637.38 crore during the fiscal year 2023 from Rs 11,018.97 crore in the preceding year. Besides, profit after tax grew 15 per cent to Rs 410.86 crore in the financial year 2023 from Rs 357.60 crore in FY22.

Shapoorji Pallonji group is the biggest shareholder in Tata Sons.