Afcons Infrastructure IPO: A Strategic Capital Market Move

Afcons Infrastructure Ltd, a Shapoorji Pallonji group company, is set to enter the capital market with an IPO to raise up to Rs 5,430 crore. The proceeds from the fresh issue of shares will fund capital expenditure, long-term working capital, debt repayment, and corporate purposes.

Afcons Infrastructure Ltd, the leading infrastructure arm of the Shapoorji Pallonji group, is poised to make a significant entry into the capital market. The company has announced an initial public offering (IPO) set to open on October 25, aiming to raise up to Rs 5,430 crore. The offering will include fresh equity shares worth Rs 1,250 crore and a promoter-led offer for sale (OFS) of Rs 4,180 crore.

Proceeds from the fresh issue are earmarked for strategic investments, including Rs 80 crore for purchasing construction equipment and Rs 320 crore to bolster long-term working capital. Additionally, Rs 600 crore will be allocated towards debt repayment. The OFS proceeds will be directed to the selling shareholders, with Afcons Infrastructure not benefiting directly.

With over 79 projects completed across 17 countries, Afcons Infrastructure continues to expand its robust portfolio, currently managing 65 ongoing projects worldwide. This strategic IPO will support the flagship company in sustaining its growth trajectory in key infrastructure sectors, including marine, industrial, transport, urban infrastructure, and oil and gas segments.

(With inputs from agencies.)