Afcons Infrastructure IPO: Price band set at ₹440-463 per share; check issue details, key dates, more | Stock Market News

Afcons Infrastructure IPO price band: The Afcons Infrastructure Limited IPO price band has been fixed in the range of ₹440 to ₹463 per equity share of the face value of ₹10. The Afcons Infrastructure IPO date of subscription is scheduled for Friday, October 25, and will close on Tuesday, October 29. The allocation to anchor investors for the Afcons Infrastructure IPO is scheduled to take place on Thursday, October 24.

The floor price and the cap price are 44 times and 46.30 times the face value of the equity shares respectively. The price to earnings ratio based on diluted EPS for fiscal 2024 at the upper end of the price band is 35.08 times as compared to the average industry peer group PE ratio of 47.91 times. The Afcons Infrastructure IPO lot size is 32 equity shares and in multiples of 32 equity shares thereafter.

Afcons Infrastructure IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. A discount of ₹44 per equity share is being offered to eligible employees.

Tentatively, Afcons Infrastructure IPO basis of allotment of shares will be finalised on Wednesday, October 30, and the company will initiate refunds on Thursday, October 31, while the shares will be credited to the demat account of allottees on the same day following refund. Afcons Infrastructure share price is likely to be listed on BSE and NSE on Monday, November 4.

Afcons Infrastructure, the primary infrastructure, engineering, and construction company of the Shapoorji Pallonji group, is a diversified Indian conglomerate with a legacy spanning over six decades. The company has a proven track record of successfully delivering numerous intricate, demanding, and distinctive engineering, procurement, and construction (EPC) projects, both domestically and internationally.

As of June 30, 2024, the company is actively engaged in 65 projects across 12 countries, with a total order book value of ₹317.47 billion.

Over time, the company has expanded its global presence, particularly across Asia, Africa, and the Middle East. Afcons Infrastructure has undertaken several complex, challenging, unique, and pioneering infrastructure projects in India and around the world, as indicated in the Fitch Report.

As per the red herring prospectus (RHP), the company’s listed peers are Larsen & Toubro Ltd (with a P/E of 37.14), KEC International Ltd (with a P/E of 74.67), Kalpataru Project International Ltd (with a P/E of 42.20), and Dilip Buildcon Ltd (with a P/E of 37. 63)

Afcons Infrastructure Limited saw a 6% rise in revenue and a 9% increase in profit after tax (PAT) from the financial year ending on March 31, 2023 to March 31, 2024.

Afcons Infrastructure IPO details

The IPO includes a fresh issuance of equity shares valued at ₹1,250 crore and a share offer worth ₹4,180 crore by its promoter Goswami Infratech.

Goswami Infratech, Shapoorji Pallonji and Company, Floreat Investments, Hermes Commerce, and Renaissance Commerce are the promoters, holding 99% of the company’s shares, while the remaining one percent is owned by public shareholders.

The company plans to allocate ₹80 crore from the net fresh issue proceeds for the purchase of construction equipment and ₹320 crore for long-term working capital requirements.

The company plans to allocate ₹600 crore for debt repayment, with the remaining IPO funds earmarked for general corporate purposes.

Afcons Infrastructure IPO has book running lead managers including ICICI Securities Limited, Dam Capital Advisors Ltd (formerly known as Idfc Securities Ltd), Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management Limited, and SBI Capital Markets Ltd. Additionally, Link Intime India Private Ltd will serve as the registrar for the issue.

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