Company Overview
Afcons Infrastructure Ltd stands as the core infrastructure, engineering, and construction entity of the Shapoorji Pallonji Group, a conglomerate with a remarkable legacy exceeding 150 years. As highlighted in the Fitch Report, Afcons ranks among India’s foremost international infrastructure firms and appeared in the 2023 ENR (Engineering News-Record, US) Top International Contractors list, attributed to its revenue from international operations in FY23.
Operating across five primary sectors—marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil & gas—Afcons has delivered several high-profile projects. Noteworthy undertakings include the Ghana Rail Project, Chenab Bridge, Atal Tunnel, MG Setu Bridge, the Lusaka City Decongestion Project in Zambia, the Link Project in the Maldives, the Kolkata Metro, and the Mumbai-Ahmedabad High-Speed Railway.
Afcons has steadily expanded its reach, especially across Asia, Africa, and the Middle East, successfully completing 79 projects in 17 countries. As of June 30, 2024, the company is managing 65 active projects across 12 nations, with a substantial order book valued at Rs 317.47 billion.
IPO Objectives
The IPO aims to:
- Support capital expenditure for acquiring construction equipment.
- Fund long-term working capital needs.
- Enable the partial prepayment or scheduled repayment of certain borrowings and credit facilities.
- Serve general corporate purposes.
Promoter Holding
The company’s promoters consist of Goswami Infratech Pvt Ltd, Shapoorji Pallonji and Company Pvt Ltd, Floreat Investments Pvt Ltd, Shapoorji Pallonji Mistry, Firoz Cyrus Mistry, and Zahan Cyrus Mistry. Together, the promoters and their affiliated entities hold a substantial pre-issue shareholding stake of 99.48% in Afcons Infrastructure Ltd.
Summary of Financial Information:
| Period Ended | 30-Jun-24 | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
|---|---|---|---|---|
| Assets | 17,184.58 | 16,233.64 | 14,301.25 | 12,973.77 |
| Revenue | 3,213.47 | 13,646.88 | 12,844.09 | 11,269.55 |
| Profit After Tax | 91.59 | 449.76 | 410.86 | 357.61 |
| Net Worth | 3,662.25 | 3,575.05 | 3,155.06 | 2,691.03 |
| Reserves and Surplus | 3,342.52 | 3,255.22 | 2,653.75 | 2,190.11 |
| Total Borrowing | 3,365.10 | 2,455.00 | 1,562.82 | 1,555.20 |
Comparison with Listed Peers:
| Company Name | P/E | P/B | RoE (%) |
|---|---|---|---|
| Afcons Infrastructure Ltd | 43 | 4 | 13 |
| Larsen & Toubro Ltd | 37 | 5 | 18 |
| KEC International Ltd | 66 | 5 | 9 |
| Kalpataru Projects International Ltd | 42 | 4 | 10 |
| Dilip Buildcon Ltd | 24 | 2 | 5 |
Key IPO Details:
- IPO Dates: 25 to 29 October, 2024
- Price Band : Rs. 440 to Rs. 463 per share
- Lot Size: 32 shares
- Total Issue size: Rs. 5430 Crores (Fresh Issue: Rs. 1250 Cr.)
- Retail Quota: 35%
- Listing Date: 4th Nov 2024
- GMP: 4% ( For Informational purposes only )
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
