The ₹7,000-crore initial public offer (IPO) of Afcons Infrastructure, the flagship construction firm of the Shapoorji Pallonji group, has received the green light from SEBI.
Bulk of the issue, to the tune of ₹5,750 crore, is through an offer for sale by Goswami Infratech, while the company itself is raising ₹1,250 crore through a fresh issue of shares.
The company filed the draft papers in March this year.
Of the total proceeds from the fresh issue, ₹150 crore will be used for capital expenditure to buy construction equipment, ₹350 crore for funding long-term working capital, ₹500 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by it, and general corporate purposes.
Afcons’ order book increased at a CAGR of 7.6 per cent from ₹26,248.46 crore in FY21 to ₹30,405.77 crore in FY23. As of September 30, 2023, it stood at ₹34,888.39 crore.
Its restated consolidated revenue from operations during FY23 increased 14.69 per cent to ₹12,637.38 crore from ₹11,018.97 crore in the previous year. Profit after tax grew 14.89 per cent from ₹357.60 crore for FY22 to ₹410.86 crore for FY23.
For the six months ended September 30, 2023, revenue from operations stood at ₹6,505.39 crore, and profit after tax stood at ₹195.13 crore.
Afcons operates across five major infrastructure business verticals marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas.