Afcons Infrastructure's IPO to open in early October
Afcons Infrastructure — the largest in over two years — is likely to be launched in the first week of October, according to sources. The flagship engineering and construction arm of the Shapoorji Pallonji Group could increase the size of the issue to ₹8,400 crore from ₹7,000 crore planned earlier, including the pre-IPO allotment. This makes it the largest IPO since Life Insurance Corp's (LIC) ₹21,008 crore issue in May 2022.
According to the draft red herring prospectus (DRHP), the offering consists of a fresh issue of up to ₹1,250 crore and an offer for sale (OFS) of up to ₹5,750 crore by the promoter, Goswami Infratech. Sources said the promoters are considering selling more shares worth ₹7,150 crore. Afcons did not respond to ET's queries.
The company plans to use the proceeds from the fresh issue for capital expenditure on construction equipment, funding long-term working capital needs, and prepaying borrowings.
Afcons Infra’s IPO to Open Early Oct
ICICI Securities, DAM Capital, Jefferies India, Nomura, Nuvama, and SBI Capital are the book-running lead managers for the issue.
This would be the second public issue from Shapoorji Pallonji Group, the privately-held conglomerate headed by Shapoor Mistry. In August 2019, Sterling & Wilson Solar, the group’s solar power engineering and EPC company, raised around ₹3,125 crore through IPO.
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