Afcons Infrastructure IPO: Review, Valuation, Date & GMP

Afcons Infrastructure IPO-Complete Overview

Afcons Infrastructure IPO also k/a (Shapoorji Pallonji IPO) a Mainboard IPO is a book-built issue of Rs.5,430 crore (11,72,78,618 Shares) by Afcons Infrastructure Ltd. founded in 1959, is a Shapoorji Pallonji group infrastructure engineering and construction company with more than 60 years of experience.

With 76 projects finished in 15 countries as of September 30, 2023, the company has completed contracts for a total of Rs.522.20 billion. With 67 ongoing projects spanning 13 countries, the company has an order book worth Rs.348.88 billion.

The Middle East, Africa, and Asia are the company's global regions of presence. Ports, harbor jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks, and material handling systems are examples of marine and industrial developments.

Surface transportation projects include building highways, roads, interchanges, infrastructure for mining, and railways. Projects related to urban infrastructure include flyovers, elevated corridors, bridges, and underground and elevated metro systems.

Hydro and underground projects include water and irrigation systems, barrages, tunnels (including long road tunnels), underground works, and dams. Both onshore and offshore oil and gas developments are included.

 

The 5 major business verticals of the company are:

• Marine and Industrial

• Surface Transport

• Urban Infrastructure

• Hydro and Underground

• Oil and Gas.

This new IPO is to be launched on 25 October 2024, and the initial public offering of this upcoming IPO will end on 29 October 2024

Afcons Infrastructure IPO Overview

The Rs.5,430 crore Afcons Infrastructure Limited IPO comprises a fresh Issue of 2.7 crore Shares (Rs.1250 Cr) and an offer for sale (OFS) of 9.03 crore Shares (Rs.4180 Cr). Afcons Infrastructure IPO shareholder quota is 35% allocated to retail investors, 50% to institutional investors, and 15% to non-institutional investors. The IPO listing date is on November 04, 2024.

If You want to apply for the IPO, Click Here to Open a Demat Account.

Afcons Infrastructure: Project Portfolio

Chenab Bridge, J&K, India

 

Zambia-Lusaka City Decongestion Project, Zambia

Ghana Rail Project, Ghana

 

Company Financial

The company’s revenue grew by 6% and PAT increased by 9% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

Vertical-wise revenue Bifurcation

(Values in millions)

 

Geography-wise Revenue Bifurcation 

(Values in millions)

 

Client-wise Revenue Bifurcation 

(Values in millions)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Capital outlay for the acquisition of construction machinery.

• Financing the long-term needs for working capital.

• Repayment in full or in part on a scheduled basis of some outstanding loans and acceptances that the business has obtained.

• Corporate Purposes.

   

  

   

Peers of Afcons Infrastructure Ltd. 

 

Evaluation

Afcons IPO price is between Rs.440 to Rs.463 for each Share.

IPO's Strengths 

• A proven track record of completing complex, large-scale, and high-value projects on time.

• Strong financial performance, a diversified order book across business verticals, clients, and geographies, as well as enduring client relationships worldwide.

• Co-operation between internal teams and their joint venture partners, as well as a strategic equipment base that results in powerful execution capabilities.

• Practices of knowledge management and innovation.

• Professional leadership group with ancestry from the Shapoorji Pallonji Group. 

• Robust risk management, dispute resolution, and project selection procedures.

 

IPO’s Weaknesses 

• The company is heavily reliant on contracts from the Government or clients who are Government-owned, which exposes the company to several dangers.

• The company might not get paid if any of its projects are terminated, which could harm its business flow.

• The project completion cost may differ significantly from the estimates included in its bid. Its financial situation, operational performance, and cash flows could all suffer if the company is unable to recoup all or a portion of the higher costs.

• It relies heavily on contract labour, so its business may suffer if it is unable to obtain contract labor at fair prices at the project locations.

• In the previous fiscal years, it had negative cash flows from investing activities. Constant negative cash flows could affect its cash flow needs.

 

Afcons Infrastructure IPO GMP Today

Afcons Infrastructure IPO GMP is  IPO GMP is Rs.70 as of 22 October 2024 

Afcons Infrastructure IPO Timetable (Tentative)

The Afcons Infrastructure IPO date is from

25 October to 29 October, with IPO allotment on 30 October, and refund initiation on 31 October. The IPO listing date is on 04 November 2024.

 

Afcons Infrastructure IPO Details 

Afcons Infrastructure's share price is between Rs.440 to Rs.463 for each Share. The IPO with a face value of Rs.10 per Share offers a total issue size of 117,278,618 Shares with a Lot size of 32 Shares it will be listed at BSE and NSE. 

Afcons Infrastructure IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (32 Shares) amounting to Rs.14,816 and 13 Lots (416 Shares) amounting to Rs.1,92,608 respectively, while for HNI investors, the minimum Lot is 14 (448 Shares) amounting to Rs.2,07,424.

Afcons Infrastructure IPO Reservation

 

Promoters and Management of Afcons Infrastructure Ltd. 

• Goswami Infratech Private Limited.

• Shapoorji Pallonji and Company Private Limited.

• Floreat Investments Private Limited.

 

Afcons Infrastructure IPO Lead Managers

• ICICI Securities Limited

• Dam Capital Advisors Ltd. (Formerly Idfc Securities Ltd.)

• Jefferies India Private Limited.

• Nomura Financial Advisory And Securities (India) Pvt Ltd.

• Nuvama Wealth Management Limited.

• SBI Capital Markets Limited.

 

Dividend Policy

 

Conclusion

In the wake of its proven track record, diversified projects, and stable growth, among others, Afcons Infrastructure IPO might be considered a good opportunity #. Significant Government contracts and an international presence are the manifestations of strong potential. The company has a heavy dependence on Government contracts and risks associated with variations in project cost. Pros and cons must be weighed well before investment decisions.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

This is NOT any buy or sell recommendation. The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities/trading activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in investing/trading.  

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