Afcons Infrastructure Limited IPO detail | sathigujarati.in
The Afcons Infrastructure Limited IPO, expected to launch from October 25 to October 29, 2024, is a significant offering from one of India’s leading infrastructure development companies. Afcons, part of the Shapoorji Pallonji Group, specializes in large-scale infrastructure projects across sectors like marine, railways, highways, and urban infrastructure. Here’s a detailed breakdown of the IPO:
- Total Issue Size: The IPO size is ₹5,430 crore, with a fresh issue of ₹1,250 crore and an Offer for Sale (OFS) amounting to ₹4,180 crore. In the OFS, shares will be sold by the promoter entity, Goswami Infratech, part of the promoter group.
- Price Band: The price per share is set between ₹440 and ₹463.
- Lot Size: The minimum bid is for 32 shares, and investors can apply in multiples of 32. At the upper price band, the minimum investment is approximately ₹14,816.
- Listing: The IPO will be listed on both the BSE and NSE, with the shares expected to debut on November 4, 2024.
- IPO Opening Date: October 25, 2024
- IPO Closing Date: October 29, 2024
- Allotment Date: October 30, 2024
- Listing Date: November 4, 2024.
The funds from the fresh issue of ₹1,250 crore will be primarily used for:
1. Capital expenditure to support the company’s expansion efforts and ongoing projects.
2. Working capital requirements to ensure smooth project execution.
3. Debt repayment to reduce financial leverage.
4. General corporate purposes.
Afcons Infrastructure has demonstrated steady growth and robust financial health:
- Revenue: The company reported increasing revenues, driven by its diverse portfolio of projects across India and internationally. Its presence spans over 17 countries, with an order book of approximately ₹40,000 crore.
- Profit Margins: The company has a PAT margin of 3.2% as of June 2024, reflecting its profitability amidst large-scale infrastructure projects.
- Return on Equity (ROE): It stands at 13.96%, highlighting efficient use of shareholder capital.
- QIB (Qualified Institutional Buyers): 50%
- NII (Non-Institutional Investors): 15%
- Retail Investors: 35%.
Afcons Infrastructure’s strong position in infrastructure development, coupled with its diversified portfolio of projects, makes it a reliable choice for long-term investors. The company is involved in marine, oil and gas, railways, highways, and urban infrastructure, giving it an edge in capturing future growth opportunities in India’s expanding infrastructure sector.
While Afcons has strong fundamentals, investors should consider the cyclical nature of the construction and infrastructure industry, dependency on government projects, and potential risks related to execution and regulatory changes.
This IPO has garnered attention due to Afcons’ solid track record, a healthy order book, and growth potential in the infrastructure space. Investors looking to diversify their portfolio with infrastructure stocks may find this a valuable opportunity.
1. What is Afcons Infrastructure Limited’s IPO?
Afcons Infrastructure Limited is launching an Initial Public Offering (IPO) to raise capital. The IPO includes a fresh issue and an Offer for Sale (OFS), enabling investors to purchase shares of the company and participate in its growth.
2. When does the Afcons Infrastructure IPO open and close for subscription?
The IPO opens on October 25, 2024, and closes on October 29, 2024 for all categories of investors.
3. What is the price band for the Afcons Infrastructure IPO?
The price band for the IPO is set between ₹440 and ₹463 per share.
4. What is the minimum lot size for the Afcons Infrastructure IPO?
Investors must apply for a minimum lot size of 32 shares. The amount required for a single lot at the upper price band is approximately ₹14,816.
5. How is the IPO allotment divided among different investors?
The IPO is allocated as follows: 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Investors.
6. How can I apply for the Afcons Infrastructure IPO?
You can apply through the ASBA (Application Supported by Blocked Amount) process via your bank account or UPI through your broker’s trading platform. You may also fill out an offline application through your broker.
7. What is the purpose of the funds raised from the IPO?
The proceeds from the fresh issue will be utilized for capital expenditure, working capital requirements, debt repayment, and general corporate purposes.
8. What is the expected listing date of the Afcons Infrastructure IPO?
The shares are expected to be listed on November 4, 2024 on the BSE and NSE.
9. Who are the lead managers for the Afcons Infrastructure IPO?
The lead managers include ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets.
10. What is the financial position of Afcons Infrastructure Limited?
Afcons has a robust order book of approximately ₹40,000 crore, reflecting a diversified and growing project portfolio. The company reported a PAT margin of 3.2% as of June 2024, with a strong presence in infrastructure sectors like marine, highways, and railways.
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| Afcons Infrastructure Limited IPO detail |
Key IPO Details
- Total Issue Size: The IPO size is ₹5,430 crore, with a fresh issue of ₹1,250 crore and an Offer for Sale (OFS) amounting to ₹4,180 crore. In the OFS, shares will be sold by the promoter entity, Goswami Infratech, part of the promoter group.
- Price Band: The price per share is set between ₹440 and ₹463.
- Lot Size: The minimum bid is for 32 shares, and investors can apply in multiples of 32. At the upper price band, the minimum investment is approximately ₹14,816.
- Listing: The IPO will be listed on both the BSE and NSE, with the shares expected to debut on November 4, 2024.
IPO Timeline
- IPO Opening Date: October 25, 2024
- IPO Closing Date: October 29, 2024
- Allotment Date: October 30, 2024
- Listing Date: November 4, 2024.
Purpose of the IPO
The funds from the fresh issue of ₹1,250 crore will be primarily used for:
1. Capital expenditure to support the company’s expansion efforts and ongoing projects.
2. Working capital requirements to ensure smooth project execution.
3. Debt repayment to reduce financial leverage.
4. General corporate purposes.
Financial Performance
Afcons Infrastructure has demonstrated steady growth and robust financial health:
- Revenue: The company reported increasing revenues, driven by its diverse portfolio of projects across India and internationally. Its presence spans over 17 countries, with an order book of approximately ₹40,000 crore.
- Profit Margins: The company has a PAT margin of 3.2% as of June 2024, reflecting its profitability amidst large-scale infrastructure projects.
- Return on Equity (ROE): It stands at 13.96%, highlighting efficient use of shareholder capital.
Allocation Details
- QIB (Qualified Institutional Buyers): 50%
- NII (Non-Institutional Investors): 15%
- Retail Investors: 35%.
Strengths and Industry Position
Afcons Infrastructure’s strong position in infrastructure development, coupled with its diversified portfolio of projects, makes it a reliable choice for long-term investors. The company is involved in marine, oil and gas, railways, highways, and urban infrastructure, giving it an edge in capturing future growth opportunities in India’s expanding infrastructure sector.
Risks and Considerations
While Afcons has strong fundamentals, investors should consider the cyclical nature of the construction and infrastructure industry, dependency on government projects, and potential risks related to execution and regulatory changes.
This IPO has garnered attention due to Afcons’ solid track record, a healthy order book, and growth potential in the infrastructure space. Investors looking to diversify their portfolio with infrastructure stocks may find this a valuable opportunity.
FAQs for the Afcons Infrastructure Limited IPO:
1. What is Afcons Infrastructure Limited’s IPO?
Afcons Infrastructure Limited is launching an Initial Public Offering (IPO) to raise capital. The IPO includes a fresh issue and an Offer for Sale (OFS), enabling investors to purchase shares of the company and participate in its growth.
2. When does the Afcons Infrastructure IPO open and close for subscription?
The IPO opens on October 25, 2024, and closes on October 29, 2024 for all categories of investors.
3. What is the price band for the Afcons Infrastructure IPO?
The price band for the IPO is set between ₹440 and ₹463 per share.
4. What is the minimum lot size for the Afcons Infrastructure IPO?
Investors must apply for a minimum lot size of 32 shares. The amount required for a single lot at the upper price band is approximately ₹14,816.
5. How is the IPO allotment divided among different investors?
The IPO is allocated as follows: 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Investors.
6. How can I apply for the Afcons Infrastructure IPO?
You can apply through the ASBA (Application Supported by Blocked Amount) process via your bank account or UPI through your broker’s trading platform. You may also fill out an offline application through your broker.
7. What is the purpose of the funds raised from the IPO?
The proceeds from the fresh issue will be utilized for capital expenditure, working capital requirements, debt repayment, and general corporate purposes.
8. What is the expected listing date of the Afcons Infrastructure IPO?
The shares are expected to be listed on November 4, 2024 on the BSE and NSE.
9. Who are the lead managers for the Afcons Infrastructure IPO?
The lead managers include ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets.
10. What is the financial position of Afcons Infrastructure Limited?
Afcons has a robust order book of approximately ₹40,000 crore, reflecting a diversified and growing project portfolio. The company reported a PAT margin of 3.2% as of June 2024, with a strong presence in infrastructure sectors like marine, highways, and railways.
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