Afcons Infrastructure IPO

Afcons Infrastructure IPO

listed
₹14,080Min. investment
  1. Bid start
    25 Oct
  2. Bid end
    29 Oct
  3. Allotment
    27 Oct
  4. Release of funds
    31 Oct
  5. Demat transfer
    30 Oct
  6. Listing
    9 Nov

About Afcons Infrastructure Limited

Price range₹440 – ₹463
IPO type
Regular
Lot size32 shares
Issue size₹5,430Cr
RHP/DRHP
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Revenue growth
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Earnings expansion
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Debt to Equity ratio
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Afcons Infrastructure IPO Details

Afcons Infrastructure IPO Date

According to the offer document filed by the company with the SEBI, the Afcons Infrastructure IPO’s opening date – in other words, the Afcons Infrastructure IPO launch date – will be 25th October 2024. The Afcons Infrastructure IPO closing date is 29th October 2024. After this, investors will be updated about the allotment status on 30th October 2024.
Investors who have been allotted shares can expect them to be credited to their demat account on 31st October 2024. The Afcons Infrastructure IPO listing date is 4th November 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.
Afcons Infrastructure IPO Price Band
The IPO is a fresh issue and an offer for sale. The Afcons Infrastructure IPO price band has been set between ₹ 440 and ₹463 per share. Interested investors can choose a price within this band to apply for the IPO.
The Afcons Infrastructure IPO listing price will be determined on 4th November 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.
Afcons Infrastructure IPO Lot Size
The Afcons Infrastructure IPO details have been declared. The Afcons Infrastructure IPO lot size is set at 32 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Afcons Infrastructure IPO issue size is approx ₹5,430 crore.
Afcons Infrastructure IPO Objective
The money raised from the fresh issue will be utilised to purchase construction equipment, fund long-term working capital requirements, prepay borrowings, and for general corporate purposes.

About Afcons Infrastructure  Limited

Incorporated in 1959, Afcons Infrastructure Limited is the flagship infrastructure, engineering, and construction company of the Shapoorji Pallonji group, a diversified Indian conglomerate. The company has a strong track record of executing numerous complex engineering, procurement, and construction (EPC) projects in India and overseas.
Its business verticals cater to marine and industrial infrastructure such as ports and jetties, surface transport like highways and roads, urban infrastructure like metros and flyovers, hydro and underground construction like dams and tunnels, and oil and gas projects.
In the last eleven fiscal years, up to 30 June 2024, it has completed 79 projects across 17 countries and 65 ongoing projects across 12 countries, aggregating an order book of ₹31,747 crore. Domestic orders comprise 75.6% of the total order book, while the rest are from international markets.
Some of its projects include the Chenab bridge in Jammu and Kashmir, the Atal tunnel in Rohtang, Himachal Pradesh, the MG Setu Bridge in Patna, Bihar, the Zambia—Lusaka City decongestion project, and the Male to Thilafushi link project in the Maldives.
It benefits from the strong parentage of the Shapoorji Pallonji Group, which has a legacy of over 150 years. It can access its network for strategic collaborations, business development opportunities, and knowledge sharing.
Between FY22 and FY24, its revenue from operations rose by 6.3%, and its profit rose by over 7.9%. Moreover, the Indian infrastructure industry is expected to grow at a CAGR of 9.9% between FY23 and FY28 to reach ₹14,380.3 billion, which could bring new order win opportunities for the company.
And now, Afcons Infrastructure Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹5430 crore, comprising fresh issue, aggregating to ₹1250 crore, and an offer for sale, aggregating to ₹4180 crore.  Its shares will be listed on the NSE and BSE.
Company Name :  Afcons Infrastructure Limited
Company Established On : 1959
Company Type : Private
CEO/MD :   Paramasivan Srinivasan

Financial snapshot

ParticularsFY22FY23FY24
Revenue₹ 11,018 cr₹ 12,637 cr₹ 13,267 cr
Net Profit₹ 357  cr₹ 410 cr₹ 449 cr

Afcons Infrastructure IPO Analysis

Strengths and Opportunities

  1. It has a strong track record of executing large and complex projects, having undertaken many ‘first of its kind’ infrastructure projects in India and the rest of the world.
  2. The company primarily targets large-value and complex projects, which offer better profit margins than less complex projects because there are fewer competitors.
  3. Globally, it is the 10th largest international marine and port facilities contractor, the 12th largest contractor in the bridges segment, the 42nd largest contractor in the transportation segment and the 18th largest contractor in the transmission lines and aqueducts segment, based on International Revenue for FY23.
  4. Diversified order book across different business verticals, geographies, and clients.
  5. It owns and maintains a large equipment base, including 11 marine barges, 153 cranes, 16 tunnel boring machines, eight large capacity jack-ups, and 21 piling rigs as of 30 June 2024, allowing strong execution capabilities.
  6. Strong risk management, project selection and dispute resolution processes.

Risks and threats

  1. Significantly dependent on projects awarded by the government or government-owned customers and an inability to bid for such projects might affect its business.
  2. Operates a capital-intensive business and has utilised working capital demand loans from banks amounting to ₹1,594 crore as of 30 June 2024. 
  3. The inability to collect trade receivables, which amounted to ₹3,974 crore as of 30 June 2024, might affect its financials. 
  4. International operations expose it to complex management, legal, tax, operational, and economic risks, as well as exchange rate fluctuations.
  5. It faces increased execution risks as its projects are executed in difficult conditions, such as rough weather, high seas, high altitudes, or rugged terrain.
  6. Had an employee attrition rate of 18%, 20%, and 19% in FY22, FY23, and FY24, respectively.
  7. Business is subject to fluctuations due to seasonal, climatic and other factors.
  8. Faces competition from other infrastructure construction companies like Larsen & Toubro, KEC International, Kalpataru Projects International, Tata Projects and Dilip Buildcon.

How to apply for the Afcons Infrastructure IPO?

If you are interested to invest in Afcons Infrastructure IPO, following are the steps to apply:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover tab, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, look for the ‘Afcons Infrastructure IPO’ tab and click on it
  5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
  6. Confirm and click on ‘Apply’
  7. Accept the mandate on your UPI app

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of Afcons Infrastructure IPO ?

The issue size of the Afcons Infrastructure IPO is 5430 Cr.

What is 'pre-apply' for Afcons Infrastructure IPO ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will Afcons Infrastructure IPO shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.