The main infrastructure engineering and construction business of the Shapoorji Pallonji Group, Afcons Infrastructure Limited, has submitted its draft registration papers (DRHP) to market regulator Sebi in an effort to generate Rs 7,000 crore through an initial public offering (IPO).
The proposed offering will consist of a new share offering valued at Rs 1,250 crore and a selling offer up to Rs 5,750 crore from Goswami Infratech Private Limited, one of the company's promoters. A reservation for subscriptions by qualified workers would be part of the offer. It is the biggest infra IPO in ten years, according to market sources.
The business may think about issuing additional equity shares through a preferential issuance or any other means for a cash price of up to Rs 250 crore as a pre-IPO placement, after consulting with the book-running lead managers. If such a placement is made, the size of the new problem will be decreased.
As per the media report earlier today, the Mistry family-backed SP group is attempting to acquire Rs 2,000 crore from state-run institutions in order to pay off debt that was obtained against shares in the Tata group holding firm. Tata Sons and the Tata Trusts are reportedly keeping a careful eye on this effort.
According to a credible article, the SP group owns an 18.37% interest in Tata Sons, all of which is secured by loans. According to the media source, the holding firm is 66% owned by the Tata Trust.
An Indian company, Afcons Infrastructure, has been successfully completing a wide range of difficult and demanding engineering, procurement, and construction (EPC) projects both domestically and abroad for more than 60 years. As to the Fitch Report, Afcons is acknowledged as one of the top multinational infrastructure corporations in India.
Afcons works on projects including ports, harbors, dry docks, LNG tanks, and material handling systems in the marine and industrial business verticals, two of the five main infrastructure business verticals; Hydro and Underground, which includes dams, tunnels, and water-related projects; Surface transport, which includes highways, interchanges, mining infrastructure, and railroads; Urban infrastructure, which includes metro works, bridges, flyovers, and elevated corridors; Projects in the oil and gas industry, both onshore and offshore.
The company is presently participating in 67 ongoing projects in 13 different countries as of September 30, 2023. The company's global reach include the Middle East, Africa, and Asia. Its competitors include, among others, L&T, KEC International, Dilip Buildcon, and Kalpataru Projects International, all of which are listed peers.
Afcons has an amazing fleet of equipment as of September 30, 2023, which includes piling rigs, marine barges, cranes, and tunnel boring machines. For the upkeep of its equipment, the business has two specialised workshops in Delhi and Nagpur. The company's order book was valued at Rs 34,888.39 crore as of September 30, 2023.
A minimum of 15% of the net offer was set aside for non-institutional bidders, and the remaining 35% was designated for distribution to retail individual issue investors. The offer stipulated that a maximum of 50% of the net offer would be reserved for qualified institutional buyers (QIBs).
The book-running lead managers include ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets. Link Intime India is the issue registrar. The company's shares will be listed on the BSE and NSE.
