Afcons Infra cuts offer size to ₹5,400 cr after raising ₹3,000 cr before IPO

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Subscribe to enjoy similar stories. Mumbai: Shapoorji Pallonji Group company Afcons Infrastructure is looking to raise ₹5,400 crore through its initial public offering (IPO) after selling shares worth about ₹3,000 crore in a pre-IPO round, two people aware of the development told Mint. Afcons had previously planned to raise ₹7,000 crore through the IPO.

However, owing to high demand from investors, the company opted for a pre-IPO round of around ₹3,000 crore through an offer for sale (OFS) by the promoters, the sources added. Including the pre-IPO round, the company will be looking to raise about ₹8,400 crore, 20% more than the ₹7,000 crore it had originally planned to raise. The infrastructure firm could file its red herring prospectus with the Securities and Exchange Board of India (Sebi) as early as Friday, having received clearance for its updated draft red herring prospectus (DRHP) on Wednesday, they said, adding that the public offer will open for subscription next week.

Also read: Tempted by the IPO boom? Sebi and these experts would like a word. The pre-IPO shares were sold at a 30% discount to those of market leader Larsen and Toubro (L&T), one of the sources said. L&T stock was trading at ₹3,557 as of 2 pm on Thursday, which translates to a price-to-earnings ratio of 46.4, according to BSE data.