New Delhi: Afcons Infrastructure Ltd., which has established itself as a prominent player in the Indian infra structure and bridge construction business is planning to hit the market with an Initial Public Offer just before Diwali. The firm, which operates under Shapoorji Pallonji Group with a stake of almost 16% in Tata Group, plans to garner ₹5,430 crore through the qualified institutions. The expected demand for the issue is going to be of high interest for the seasoned investors, most of whom view the IPO is a good opportunity to invest.
Shapoorji Pallonji group, which owns a wealth of 18% in Tata sons has been integral to the Tata group for several years. Indeed, when Ratan Tata left the chairmanship of the Tata Sons group, Shapoorji Pallonji’s Cyrus Mistry was set to take over the position. Mistry met his untimely death in a car accident a number of years ago and Ratan Tata died at the age of 86 recently.
IPO Details
The public issue of AIL’s IPO is scheduled for 25 October 2024, while the subscription will be restricted to 29 October. For the next two or three weeks, the anchor investors will have the first chance to bid a day before, on 24 October.
Though the definitive price band for the shares has not been finalized yet it is expected that the company will release it in the next week only. Fresh issue of the IPO will be ₹1,250 crore, whereas the OFS portion of the IPO is ₹4,180 crore.
Promoter holding and financial plan Promoter Holding : Aspect of ogles/ Promoter Equity Total Promoter Holding : Of shares at ogles/ A-Share Total Promoter Holding : In unless /Hang Seng Index Total Promoter Holding : In unless/AA Stock Exchangeedata Promoter Holding and Financial Plans
Now a days the company is owned by the promoters and its promoter groups that has a 99% of ownership in the business. This has created a lot of hype on the IPO due to the view that a high promoter stake can be associated with future growth of the company.
On the total sales, ₹80 crore will be spent on procuring new construction tools, ₹320 crore will be invested on long term fund required for operation, ₹600 crore will be utilized for early clearance of other outstanding debts. Of the remaining amount different corporate expense will be met.
Afcons Infrastructure is benefitting from a healthy promoter base The company has clear growth plans driven by the strong promoter base thus making this IPO strategic an excellent opportunity for investors.