Afcons Infrastructure IPO will open on October 25, 2024, and close on October 29, 2024. Afcons Infrastructure was established in 1959 and is one of India’s top infrastructure engineering and construction companies. This company is part of the Shapoorji Pallonji group. Let’s discover all the Afcons Infrastructure IPO details, financials, price band, and IPO listing date.
Afcons Infrastructure IPO Dates 2024
The important dates related to Afcons Infrastructure IPO are:
- Bidding Opening Date: October 25, 2024
- Bidding Closing Date: October 29, 2024
- Allotment Date: October 30, 2024
- Initiation of Refunds (in case of less or no allotment): October 31, 2024
- Shares Credited to Your Demat Account: October 31, 2024
- IPO Listing Date: November 4, 2024
- Listing on Exchange: NSE and BSE
Afcons Infrastructure IPO Details
Its total issue size is ₹5,430 crores including both the fresh issue and offer for sale (OFS) component.
Here are the key details of Afcons Infrastructure Limited IPO:
- Afcons Infrastructure IPO Price Band: ₹440 to ₹463 per share
- Face Value: ₹10 per share
- Lot Size: 32 Shares
- Total Issue Size and Amount: 11,72,78,618 shares (amounting to ₹5,430 crores)
- Fresh Issue Size and Amount: 2,69,97,840 shares (amounting to ₹1,250 crores)
- OFS Size and Amount: 9,02,80,778 shares of ₹10 each (amounting to ₹4,180 crores)
- Listing On Exchange: NSE and BSE
Afcons Infrastructure IPO Proceeds
Afcons Infrastructure Limited is planning to use the net proceeds in the following places:
- ₹800 million for capex on purchasing construction equipments.
- ₹3,200 million for fulfilling long-term working capital needs.
- ₹6,000 million for part payments of certain loans.
- Remaining for other corporate purposes.
Afcons Infrastructure IPO Reservations
Afcons Infrastructure IPO reservations to different investors are:
- For QIBs: Not more than 50% of the net offer
- For NIIs: Not less than 15% of the net offer
- For Retail Investors: Not less than 35% of the net offer
- Afcons Infrastructure IPO Shareholder Quota: There is no shareholder quota in this IPO.
Afcons Infrastructure Lot Size
Afcons Infrastructure IPO lot size is 32 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:
| Applicant Type | Lot Size | Shares | Amount (in ₹) |
|---|---|---|---|
| Retail (Min) | 1 | 32 | 14,816 |
| Retail (Max) | 13 | 416 | 1,92,608 |
| S-HNI (Min) | 14 | 448 | 2,07,424 |
| S-HNI (Max) | 67 | 2,144 | 9,92,672 |
| B-HNI (Min) | 68 | 2,176 | 10,07,488 |
Afcons Infrastructure IPO Promoter Holding
The promoters of Afcons Infrastructure are:
- Goswami Infratech Private Limited
- Shapoorji Pallonji and Company Private Limited
- Floreat Investments Private Limited
- Shapoorji Pallonji Mistry
- Firoz Cyrus Mistry
- Zahan Cyrus Mistry
Goswami Infratech Private Limited is the only promoter-selling shareholder in this IPO.
Afcons Infrastructure: Company Overview
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Afcons Infrastructure Limited is one of the largest international infrastructure companies in India according to the Fitch report. In the last 11 financial years and April-June 2024, the company had successfully completed 79 projects across 17 countries with a total contract value of ₹563.05 billion.
As of June 30, 2024, the company has 65 ongoing projects in 12 countries totalling to order book size of ₹317.47 billion. In FY24, the company had the highest ROCE and EBITDA margin and the second-highest ROE and PAT margin among the large infrastructure construction companies in India, as quoted in the Fitch report.
The five major infrastructure business verticals of the company are Marine and Industrial, Surface Transport, Urban Infrastructure, Hydro and Underground, and Oil and Gas.
Afcons Infrastructure: Financials
Afcons Infrastructure’s key financials for Q1 FY25 and Q1 FY24 are as follows:
| Particulars | June 30, 2024 | June 30, 2023 | YoY Change |
|---|---|---|---|
| Assets | 1,71,845.75 | 1,50,843.64 | 13.92% |
| Total Income | 32,134.70 | 32,215.01 | -0.25% |
| Profit After Tax | 915.86 | 909.62 | 0.69% |
| EBITDA | 3,716.93 | 3,140.55 | 18.35% |
| Total Debt | 33,650.98 | 26,638.40 | 26.33% |
| Net Cash Flow from Operations | -5,022.05 | -6,233.25 | -19.43% |
| EPS (in ₹) | 2.69 | 2.67 | 0.75% |
*(in ₹ million)
- In the Q1 FY25 (for the April-June 2024 quarter), the company’s assets and PAT have grown by 13.92% and 0.69%, respectively on a YoY basis. However, the total income has experienced a downfall of 0.25% YoY from Q1 FY24.
- EBITDA has grown by 18.35% which is a healthy sign but the total debt has increased by 26.33%.
- Net cash flow from operating activities fell by 19.43% while the shareholder’s indicator EPS registered a slight increase.
Afcons Infrastructure: Order Book
The company’s order book in different periods is as follows:
| Particulars | June 30, 2024 | June 30, 2023 | YoY Change |
|---|---|---|---|
| Order Book | 3,17,474.27 | 3,52,402.15 | -9.91% |
| Domestic Order Book | 2,40,036.56 | 2,61,013.10 | -8.04% |
| Overseas Order Book | 77,437.70 | 91,389.05 | -15.27% |
*(in ₹ million)
- Afcons Infrastructure’s order book has fallen by 9.91% from the June 2023 quarter to the June 2024 quarter.
- Domestic and overseas order books both registered a slump of 8.04% YoY and 15.27% YoY, respectively.
Afcons Infrastructure: Ratios
Afcons Infrastructure’s key ratios for different periods are as follows:
| Key Ratios | June 30, 2024 | June 30, 2023 | YoY Change |
|---|---|---|---|
| EBITDA Margin | 11.57% | 9.75% | 18.67% |
| PAT Margin | 2.85% | 2.82% | 1.06% |
| Return on Equity (ROE) | 10.55% | 12.05% | -12.45% |
| Return on Capital Employed (ROCE) | 14.89% | 15.12% | -1.52% |
- EBITDA and PAT margin grew by 18.67% YoY and 1.06% YoY, respectively from Q1 FY24 to Q1 FY25.
- Key return ratios, ROE and ROCE both have a fall of 12.45% and 1.52%, respectively.
Peer Analysis of Afcons Infrastructure
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The comparison of the Afcons Infrastructure Limited’s performance with the peers in the industry are:
| Company Name | Revenue from Operations (in ₹ million) | EPS (Basic) | P/E | EV/EBITDA | Return on Net Worth (RoNW) | NAV per Equity Share |
|---|---|---|---|---|---|---|
| Afcons Infrastructure | 1,32,674.95 | ₹13.20 | – | – | 12.58% | ₹104.92 |
| Larsen & Toubro | 22,11,129.10 | ₹93.96 | 37.14 | 20.91 | 15.24% | ₹623.15 |
| KEC International | 1,99,141.70 | ₹13.49 | 74.67 | 23.33 | 8.68% | ₹155.32 |
| Kalpataru Project International | 1,96,264.30 | ₹31.37 | 42.20 | 14.64 | 10.17% | ₹308.36 |
| Dilip Buildcon | 1,20,119.04 | ₹13.75 | 37.63 | 10.37 | 4.44% | ₹298.85 |
*(For FY24 ending)
- In FY24, Afcons made revenue from operations of more than ₹1 lakh million.
- Return on Net worth is around 12% which is competitive among the peers.
Risk Factors in Afcons Infrastructure Limited
The risk factors that the company is exposed to are as follows:
- Failing to qualify or win new contracts in the bidding might affect the cash flow and revenue from operations.
- As of June 30, 2024, 69.80% of the company’s order book is concentrated on government or government-owned customers. They are exposed to the changes in government policies or annual budget allocations.
- The business is capital intensive and any fall in cash flow or inability to fulfill working capital requirements might affect the operations.
- Risk of not being able to collect receivables due from the customers. As of June 30, 2024, the company had a total trade receivables of ₹39,746.10 million.
- Risk of termination of the project in half-way.
- Interest rate fluctuations can impact the borrowings taken at a floating rate.
Afcons Infrastructure IPO GMP and Review
Afcons Infrastructure IPO GMP is ₹88 and its estimated listing price is ₹551 as of October 21, 2024 (at 16:58). With the IPO price of ₹463 per share, Afcons Infrastructure share price is expected to list at a gain of 19.01%.
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Afcons Infrastructure Limited IPO Contact Information
For inquiries related to the Afcons Infrastructure IPO details, you can contact at the following places:
Registered Office Address: Afcons House, 16 Shah Industrial Estate, Veera Desai Road, Andheri (West), Mumbai, Maharashtra, 400053, India
Phone: 022 6719 1214
Email: gaurang@afcons.com
Company Website: http://www.afcons.com/
Afcons Infrastructure IPO Registrar Details:
Registrar Name: Link Intime India Private Limited
Phone: +91 81081 14949
Email: afconsinfrastructure.ipo@linkintime.co.in
FAQs
1. Is Afcons a listed company?
Afcons Infrastructure is going to be listed on the BSE and NSE on November 4, 2024.
2. Who owns Afcons infrastructure?
Afcons Infrastructure is owned by the Shapoorji Pallonji Group.
3. What is the size of Afcons Infrastructure IPO?
The total issue size of the Afcons Infrastructure IPO is ₹5,430 crores.
Reference
https://www.afcons.com/sites/default/files/2024-10/Nirmaan-RHP-signed-version.pdf
Author: All Content is verified by SMC Global Securities.
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