Shapoorji Pallonji Group's Afcons Infrastructure files papers for Rs 7,000-crore IPO

The company's mega IPO is a combination of fresh issue of shares and an offer for sale by promoter Goswami Infratech Private Limited.

New Delhi: Shapoorji Pallonji Group's flagship infrastructure engineering and construction company Afcons Infrastructure Ltd (AIL) has filed draft papers with markets regulator Sebi to raise Rs 7,000 crore through an initial public offering (IPO).

The company's mega IPO is a combination of fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 5,750 crore by promoter Goswami Infratech Private Limited.

Also, the offer includes a reservation for subscriptions by eligible employees, according to the draft red herring prospectus (DRHP) filed on Thursday.

Currently, promoter and promoter group entities own 99.48 per cent stake in Maharashtra-based 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.

Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified institution, and has a leading presence in engineering & construction, infrastructure, real estate, water, energy and financial services sectors across the globe. The group companies build mega structures, develop iconic landmarks, drive innovative technologies in water management, renewable energy, oil & gas, and power.

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.

In terms of listed industry peers, Afcons compares itself with Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL), and Dilip Buildcon Ltd( DBL).

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.

ICICI Securities Ltd, DAM Capital Advisors Ltd, Jefferies India Private Ltd, Nomura Financial Advisory and Securities (India) Private Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd are the book-running lead managers to the issue.