Shapoorji Pallonji Group company Afcons Infra to raise ₹7,000 crore through IPO; Files DRHP

Shapoorji Pallonji Group company Afcons Infrastructure will raise ₹7,000 crore through an IPO.  

Afcons Infrastructure Ltd (AIL) has submitted its draft red herring prospectus (DRHP) for an initial public offering (IPO) to the Securities and Exchange Board of India (SEBI), the market regulator.

The Initial public offer by Afcons Infrastructure will include fresh issue of shares as well as an offer for sale component.

While Afcons will raise ₹1,250 crore through the issue of new shares of face value of ₹10 each. the Shapoorji Pallonji Group company Goswami Infratech Private Limited. may receive ₹5,750 crore by selling a portion of its holdings in Afcons Infrastructure through an offer for sale.

The offer includes a reservation for subscriptions by eligible employees also.

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However Afcons Infrastructure, in consultation with the book-running lead managers, is also considering undertaking a further issue of equity shares through a preferential issue or any other method for a cash consideration aggregating up to ₹250 crore as a pre-IPO placement. If such placement is completed, the fresh issue size may get  reduced.

The initial public offer is likely to value Afcons Infrastructure Ltd at ₹19,000 -20,00 crore suggested news report.

Afcons Infrastructure Limited, the Mumbai based Shapoorji Pallonji Group company, that  offers infrastructure services undertakes projects in India as well as in the international arena.  The company works on building viaducts, flyovers, metros, bridges, pipelines, highways, ports, barrages, oil and gas projects, and other infrastructure projects.

The Shapoorji Pallonji Group established in 1865 now has diversified business interest in Engineering & Construction, Infrastructure, Real Estate, Water, Energy and Financial Services sectors.  

The group of late has been in news for selling its stakes in brownfield Gopalpur port for an enterprise value of ₹3350 crore to Adani Port and SEZ Ltd.

Dharamtar Port (in Maharashtra) was acquired by Shapoorji Pallonji Group in 2015 and while Dharamtar Port was handling less than 1 MTPA in 2015, by FY24, it is anticipated to handle 5 MTPA (million tonne per annum).

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Earlier December ' 2023, it had divested its stakes in Dharamtar Port to JSW Infrastructure Ltd. for an enterprise value of around ₹700 crore.

Shapoorji Palonji group in its release  said that with the sale of these assets, the SP Group continues its deleveraging journey with planned asset monetisation to marquee counterparts.

These divestments as per company release are key milestones in its roadmap to reduce Group debt and set the stage for growth, taking advantage of the macro trends for demand in our core businesses, both in India and overseas