Shares of Afcons Infrastructure will be listed on the bourses today. The company has fixed the IPO price at ₹463 at the upper end of the ₹440-463 price band. The initial public offering (IPO) of Afcons Infrastructure, the flagship infrastructure, engineering, and construction company of the Shapoorji Pallonji group, sailed through on the last day, thanks to institutional investors’ bidding.
The IPO was subscribed 2.63 times, even as the portion reserved for retail investors did not get 100 per subscription (subscribed 0.94 time or 94 per cent). However, QIB portion was subscribed 3.79 times, NIIs 5.05 per cent and employees by 1.67 times.
The ₹5,430crore IPO consisted of a mix of fresh issues of up to ₹1,250 crore and an offer of sale of up to ₹4,180 crore by the promoter.
Earlier Afcons Infrastructure had raised ₹1,621 crore from anchor investors ahead of its IPO by allotting 3.50 crore shares at ₹463 a share. Foreign and domestic institutions hat participated in the anchor were GIC, HDFC MF, ICICI Pru AMC, BlackRock, Fidelity Investments, Goldman Sachs, HSBC Group, Nomura AM, Nippon MF, Fullerton, Enam Holdings, Birla MF, Mirae MF, Quant MF, Invesco MF, Eastbridge, Amundi, Invesco HK, Loomis & Sayles, HDFC Life, 360 One AIF, Manulife, Mirae Global, WhiteOak (MF), WhiteOak, BNP Baroda MF, LIC MF, BCI, Jupiter AM, NS Partners, ICICI Pru Life, Abakkus, Oaktree, Think Investment, Helios MF, Mahindra, Trust MF, Edelweiss Life, Carnelian, Allspring, Birla Offshore, MK Ventures, Jain Global, Jane Street, PIMCO, SBI General Insurance, Nuvama Crossover fund, GAM Investment UK, Neuberger, Taurus MF, ITI MF, Nippon Life, Verition, and Zeta Global Funds (OEIC) PCC – Zeta Series B Fund PC.
Out of the total allocation, 11,710,136 equity shares were allocated to 15 domestic mutual funds through a total of 31 schemes amounting to ₹542.2 crore contributing 33.44 per cent of the total anchor book size.
Use of funds
The proceeds from its fresh issuance will be used to the extent of ₹80 crore for capital expenditure towards the purchase of construction equipment, ₹320 crore for funding long-term working capital requirements, ₹600 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings, and acceptances availed by the company, and general corporate purposes.
Afcons operates across five major infrastructure business verticals: Marine and Industrial, encompassing projects such as ports, harbours, dry docks, LNG tanks, and material handling systems; Surface transport, including highways, interchanges, mining infrastructure, and railways; Urban infrastructure, covering metro works, bridges, flyovers, and elevated corridors.; Hydro and Underground, comprising dams, tunnels, and water-related projects; and Oil and Gas, involving offshore and onshore projects in the oil and gas sector.
