Afcons Infrastructure Limited is coming up with an IPO worth INR 5,430 crores, consisting of a fresh issue of shares worth INR 1,250 crores and an offer to sell shares worth INR 4,180 crores. The company aims to purchase construction equipment, fund working capital requirements, repay borrowings, and for general corporate purposes.
Afcons Infrastructure IPO – Important Dates
| Afcons Infrastructure IPO Date | October 25, 2024 to October 29, 2024 |
| Afcons Infrastructure IPO Listing Date | November 4, 2024 |
| Afcons Infrastructure IPO Price | INR 440-463 per share |
| Afcons Infrastructure IPO Lot Size | 32 Shares |
| Afcons Infrastructure IPO Total Issue Size | INR 5430 crores |
| Afcons Infrastructure IPO Basis of Allotment | October 30, 2024 |
| Afcons Infrastructure IPO Initiation of Refunds | October 31, 2024 |
| Afcons Infrastructure IPO Credit of Shares to Demat | October 31, 2024 |
| Afcons Infrastructure IPO Issue Type | Book Built Price Issue |
| Afcons Infrastructure IPO Listing At | BSE, NSE |
Afcons Infrastructure Limited IPO – Company Profile
Afcon Infrastructure is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group, a diversified Indian conglomerate with over six decades of legacy. The company has a strong track record of executing numerous complex, challenging, and unique EPC projects in India and internationally.
The projects cover five major infrastructure business verticals :
•Marine and Industrial, covering ports and harbor jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks, and material handling systems.
•Surface Transport, covering highways and roads, interchanges, mining-related infrastructure and railways.
•Urban Infrastructure, covering elevated and underground metro works, bridges, flyovers, and elevated corridors.
•Hydro and Underground, covering dams and barrages, tunnels (including large road tunnels) and underground works, water, and irrigation.
Afcons Infrastructure Ltd IPO Fundamental Analysis
Afcons Infrastructure shows stable financial growth, good returns on equity, and increasing asset strength. However, the rise in liabilities and the increased debt-equity ratio require careful monitoring for future risk management. With steady financials, moderate profitability, and growing assets, this company presents a balanced investment opportunity, especially if it manages its leverage effectively going forward.
Revenue and Expenses:
- Revenue: The company saw steady revenue growth, increasing from ₹110,189.66 million in March 2022 to ₹126,373.82 million in March 2023. For the six months ending September 2023, revenue stands at ₹65,053.92 million, representing about half of the previous year’s total, indicating consistent performance.
- Expenses: Expenses grew in line with revenue, from ₹108,629.97 million in March 2022 to ₹122,450.15 million in March 2023, with ₹63,679.20 million reported for the first six months of 2023. The company is maintaining a stable cost structure relative to revenue growth.
Profit and Loss After Tax (PAT):
- PAT: The company’s profit after tax increased from ₹3,576.05 million in March 2022 to ₹4,108.60 million in March 2023. For the half-year ended September 2023, PAT is ₹1,951.27 million. The current PAT indicates a stable financial position, though the six-month figure is slightly lower compared to the annual trend.
Diluted EPS:
- EPS improved from ₹10.49 in March 2022 to ₹12.06 in March 2023. For the half-year of 2023, the diluted EPS stands at ₹5.73, not annualised, showing continued earnings growth, albeit with a modest performance in the short term.
Return on Net Worth (RoNW):
- RoNW declined slightly, from 13.29% in March 2022 to 13.02% in March 2023. For the six months ending September 2023, RoNW is at 5.85% (not annualised), reflecting moderate returns on shareholders’ equity during the year.
Net Asset Value (NAV) per Equity Share:
- NAV per share improved from ₹78.98 in March 2022 to ₹92.59 in March 2023, and further to ₹97.81 as of September 2023, indicating strong shareholder equity growth.
Assets and Liabilities:
- Total Assets: The company’s assets increased from ₹129,737.67 million in March 2022 to ₹143,012.50 million in March 2023, and further to ₹161,787.03 million by September 2023, showing steady asset accumulation and growth.
- Total Liabilities: Liabilities grew from ₹102,709.67 million in March 2022 to ₹111,239.72 million in March 2023, reaching ₹128,235.65 million by September 2023. This reflects increasing leverage but also aligns with the company’s growing asset base.
Debt-Equity Ratio:
- The company maintained a stable debt-equity ratio of 0.38 in March 2022 and 0.37 in March 2023. However, it increased to 0.64 by September 2023, indicating higher borrowing during the recent period, which may need to be monitored.
Current Ratio:
- The current ratio remained stable at 1.09 between March 2022 and March 2023 and improved slightly to 1.12 by September 2023, indicating a marginal improvement in short-term liquidity.
Afcons Infrastructure IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 September 2023 (for 6 months) |
| Revenue (₹ in millions) | 1,10,189.66 | 1,26,373.82 | 65,053.92 |
| Equity (₹ in millions) | 27,028.00 | 31,772.78 | 33,551.38 |
| Expenses (₹ in millions) | 1,08,629.97 | 1,22,450.15 | 63,679.20 |
| Profit and Loss After Tax (₹ in millions) | 3,576.05 | 4,108.60 | 1,951.27 |
| Diluted EPS only (₹) | 10.49 | 12.06 | 5.73(not annualised) |
| Return on Net Worth (%) | 13.29 | 13.02 | 5.85(not annualised) |
| NAV per Equity Share (₹) | 78.98 | 92.59 | 97.81 |
| Total Assets (in millions) | 1,29,737.67 | 1,43,012.50 | 1,61,787.03 |
| Total Liabilities (in millions) | 1,02,709.67 | 1,11,239.72 | 1,28,235.65 |
| Debt Equity Ratio | 0.38 | 0.37 | 0.64 |
| Current Ratio | 1.09 | 1.09 | 1.12 |
Afcons Infrastructure Limited IPO Peer Comparison
Afcons Infrastructure, L&T, KEC, KPIL, and Dilip Buildcon show varied performance metrics, with L&T leading in revenue and NAV, while Dilip Buildcon faces negative EPS and P/E ratio challenges.
| Company | Revenue from Operations (₹ in million) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Diluted)(₹) | RoNW (%) | NAV(₹) |
| Afcons Infrastructure Limited | 126,373. 82 | 10 | NA | 12.06 | 13.02 | 92.59 |
| Larsen & Toubro Limited (L&T) (Consolidated) | 1,833,407.00 | 2 | 48.49 | 74.45 | 11.80 | 631.34 |
| KEC International Limited (KEC) | 172,817. 10 | 2 | 97.21 | 6.85 | 4.80 | 142.78 |
| Kalpataru Project International Limited (KPIL) | 163,614. 40 | 2 | 36.72 | 29.06 | 9.58 | 283.24 |
| Dilip Buildcon Limited (DBL) | 106,436. 45 | 10 | (4,162) | (0.10) | 0.02 | 270.45 |
Afcons Infrastructure Ltd IPO Objective
The main objective of Afcfons Infrastructure is to utilize INR 150 crores for purchasing construction equipment for ongoing projects, INR 350 crores for long-term working capital needs, and INR 500 crores for loan repayment. The remaining funds will support general corporate purposes.
- To purchase construction equipments: On an ongoing basis, the company invests in the procurement of capital equipment, which is utilized by the company in carrying out the EPC business, based on the order book and the future requirements estimated by the management. In relation to the HSR and CIDCO projects, the company proposes to utilize INR 150 crores out of the Net Proceeds towards the purchase of construction equipment.
- To fund long term working capital requirement: The business of the company is working capital intensive. The company proposes to utilize INR 350 crores from the Net Proceeds towards funding the Company’s long-term working capital requirements.
- To repay borrowings: The Company intends to utilize INR 500 crores from the Net Proceeds towards prepayment or scheduled repayment of all, or a portion, of the principal amount on certain loans and acceptances.
- General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
Afcons Infrastructure IPO Risks And Challenges
Afcon Infrastructure heavily relies on government-awarded projects, faces risks of cost overruns that may not be recoverable, and depends on contract labor. Any issues in these areas could negatively impact its financial condition and operations.
- The business significantly depends on projects awarded by the government or government-owned customers, which are subject to a variety of risks.
- The actual cost incurred in completing a project may vary substantially from the assumptions underlying the bid. The company may be unable to recover all or some of the additional expenses incurred, which could adversely affect the financial condition, results of operation, and cash flows.
- The company is dependent significantly on contract labour and an inability to access contract labour at reasonable costs at the project sites may adversely affect the business.
Afcons Infrastructure Ltd IPO – Industry & Market Potential
The Indian Construction industry value stood at ₹19,904.0 billion as of the Financial Year 2022, having grown at a CAGR of 10.1% from ₹13,521.2 billion as of the Financial Year 2018. India’s construction industry will continue to grow at strong rates driven by stable government support for infrastructure development and expanded private involvement in key sectors and public-private partnerships.
Afcons Infrastructure Limited IPO – Type of Offer
Afcons Infrastructure Limited is launching an IPO valued at INR 5,430 crores, featuring a fresh issue of INR 1,250 crores and an offer for sale of INR 4,180 crores. The proceeds will be used for purchasing construction equipment, funding working capital, repaying borrowings, and general corporate purposes.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1,250 crores. The company aims to purchase construction equipment, fund working capital requirements, repay borrowings, and for general corporate purposes.
- Offer for sale: Afcons Infrastructure is offering to sell existing shares worth INR 4,180 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder |
| Goswami Infratech Private Limited |
Afcons Infrastructure IPO Offer Size
The offer size for Afcons Infrastructure Limited’s IPO is INR 5,430 crores, comprising a fresh issue of INR 1,250 crores and an offer for sale of INR 4,180 crores. The funds will be utilized for purchasing construction equipment, working capital requirements, debt repayment, and general corporate purposes.
Afcons Infrastructure Limited IPO Allotment Structure
Afcons Infrastructure Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for the Afcons Infrastructure IPO?
To apply for the Afcons Infrastructure Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Afcons Infrastructure Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Afcons Infrastructure Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Afcons Infrastructure IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Afcons Infrastructure Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Afcons Infrastructure Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Afcons Infrastructure Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Afcons Infrastructure Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE, NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Afcons Infrastructure Ltd IPO Offer Registrar
The registrar for the Afcons Infrastructure Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli (West) Mumbai 400 083 Maharashtra
E-mail: afconsinfrastructure.ipo@linkinti me.co.in
Website: www.linkintime.co.in
Afcons Infrastructure IPO – FAQs
1. What is the allotment date of the Afcons Infrastructure IPO?
The allotment date of the Afcons Infrastructure Limited IPO is October 30, 2024.
2. What is the price band of the Afcons Infrastructure IPO?
The price band of the issue is INR 440-463 per share.
3. What is the size of the Afcons Infrastructure IPO?
The offer size for Afcons Infrastructure Limited’s IPO is INR 5,430 crores, comprising a fresh issue of INR 1,250 crores and an offer for sale of INR 4,180 crores. The funds will be utilized for purchasing construction equipment, working capital requirements, debt repayment, and general corporate purposes.
4. What is the listing date of the Afcons Infrastructure IPO?
The listing date of Afcons Infrastructure Limited’s IPO is November 4, 2024.
