₹ 14816 / 32 shares
IPO Details
RHP/DRHPIssue Date
25 Oct - 29 Oct'24
Investment/lot
₹ 14816
Price Range
440 - 463
Lot Size
32
IPO Size
₹ 5432.25 Cr
IPO Listing Details
Listing On
4 Nov'24
Issue Price
463
Listed Price
₹ 430.05
Retail Gain/Listing Gain
â–¼-7.99%
IPO Timeline
Afcons Infrastructure Company Background
Afcons Infrastructure Limited is the flagship infrastructure, engineering and construction company of the Shapoorji Pallonji group (i.e., the group’s leading engineering and construction company), a diversified Indian conglomerate, and has a legacy of over six decades. The company executes numerous complex, challenging and unique engineering, procurement and construction (EPC) projects both within India and internationally.
Afcons Infrastructure IPO Review | IPO Issue details | Peer Comparison | All You Need to Know
Kotak Securities
•04m 23s
Afcons Infrastructure IPO Key Points
Objectives of the IPO:
- Capital expenditure towards purchase of construction equipment
- Funding long term working capital requirements and
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by their Company
- General corporate purposes
Subscription details:
Qualified Institutional Buyer: 50% Non-Institutional Buyer: 15% Retail: 35%
Potential benefit for investors:
The company has a strong order book driven by government as well as non-government projects. By investing in Afcons Infrastructure Limited IPO, the investor gets to be a part of a company that has an established and diverse clientele.
The company’s financials have shown a steady increase over the last few years. EBITDA and PAT have grown rapidly. By investing in Afcons Infrastructure Limited IPO, one can be part of a company that is growing rapidly and one whose finances are in order.
The company is part of an industry that will be a driving force for the economy in the coming decades. Hence, by investing in Afcons Infrastructure Limited, one can be a part of a company that will be a key force in shaping the infrastructure and economy of the country.
Anchor Investors:
The anchor investor bid opens and ends on Oct 18, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.
Book Running lead manager:
Name of the book running lead manager is
ICICI Securities Limited
Jefferies India Private Limited
Nuvama Wealth Management Limited
SBI Capital Markets Limited
DAM Capital Advisors Limited
Nomura Financial Advisory and Securities (India) Private Limited
Afcons Infrastructure Key Financials
| Particulars | As of March 2024 | As of March 2023 | As of March 2022 |
|---|---|---|---|
Revenue from Operations | 5,114.02 | 4,334.55 | 3,630.52 |
Total Equity and Liability | 5,587.50 | 4,492.98 | 3,221.84 |
Return on average net worth | 52.39 | 26.80 | 28.40 |
All Financial Information about Afcons Infrastructure Limited
Here are the key financials for Afcons Infrastructure Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
Promoters of Afcons Infrastructure Limited
| Promoter Name | Designation |
|---|---|
Shapoorji Pallonji Mistry | Chairman and Non-Executive Director |
Firoz Cyrus Mistry | Whole-time Director |
Zahan Cyrus Mistry | Board of Directors |
Following is the comparison with the peer group companies of the Company listed in India and in the same line of business as the Company: The table captures the key accounting ratios of Afcons Infrastructure Limited with its listed peers for FY 24:
| Company | Revenue from Operation s for FY 2024 (₹ million) | NAV per equity share | Return on net worth | Diluted EPS |
|---|---|---|---|---|
Afcons Infrastructure Limited | 132,674.95 | 104.92 | 12.58 | 13.20 |
Larsen & Tourbo Limited (L&T) | 2,211,129.10 | 623.15 | 15.24 | 93.96 |
KEC International Limited | 199,141.70 | 155.32 | 8.68 | 13.49 |
Kalpataru Project International Limited (KPIT) | 196,264.30 | 308.36 | 10.17 | 31.37 |
Dilip Buildcon Limited (DBL) | 120,119.04 | 298.85 | 4.44 | 13.75 |
Afcons Infrastructure Builders IPO Strengths
Strong Track Record of Timely Execution of Large-Scale, Complex and High-Value Projects
The company has completed seventeen construction & infrastructure projects, which majorly include projects such as four hospitals, three road projects, six developmental and construction activities, one stadium and sports complex, one residential complex and two administrative & institutional buildings aggregating to a total of ₹15,206.14 million.
Strong order book with a government client base:
The company’s order book for the three-month period ended June 30, 2024, FY 24, FY 23 and FY 22, amounted to ₹13,803.89 million, ₹11,126.88 million, ₹16,578.79 million and ₹7,196.32 million, respectively. As of June 30, 2024, their order book consists of twelve construction & infrastructure projects aggregating to a total value of ₹15,206.14 million.
Strong financial performance
The company’s revenue from operations has grown at a rate of 17.98% year-on-year and 19.39%, year-on-year in FY24 and FY23, respectively. EBITDA has grown at a rate of 122.22% year-on-year and 20.56%, year-on-year in FY24 and FY23, respectively and PAT has grown at a rate of 182.36% year-on-year and 21.12%, year-on-year in FY24, and FY23, respectively.
Afcons Infrastructure Builders IPO Risk Factors
- The business significantly depends on projects awarded by government or government-owned customers, which subjects them to a variety of risks. Such projects contributed to 69.80% of their order
- The company may not be able to collect receivables due from their customers, in a timely manner, or at all, which may adversely affect their business, financial condition, results of operations and cash flows. As of June 30, 2024, their total trade receivables (including interest on arbitration awards) amounted to ₹39,746.10 million.
- If any of their projects are terminated prematurely, they may not receive payments due to them, which could adversely affect the business, financial condition and results of operation.
Key Strategies of Afcons Infrastructure IPO
- Selectively Pursue Large Value and Complex Projects
- Maximizing Opportunities in Existing Markets and Expanding Footprint in Overseas Markets
- Focus on Cost Management
Conclusion
Afcons Infrastructure Limited comes with a host of strengths. Their revenue from operations has been on an upward track, they have a solid order book and come with an experience of having handled diverse projects. However, it is important to keep track of challenges the company faces like
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for Afcons Infrastructure IPO?
Here are the steps to apply for Afcons Infrastructure IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Afcons Infrastructure Ltd IPO FAQs
When is Afcons Infrastructure Ltd IPO listing date?
Afcons Infrastructure Ltd IPO will list on 2024-11-04.
What is the issue size of Afcons Infrastructure Ltd IPO?
5432.25 is the issue size of Afcons Infrastructure Ltd IPO.
What is the minimum lot size required for Afcons Infrastructure Ltd IPO?
The minimum lot size is 32 shares and the investment required is ₹14816.
What is the price band of the Afcons Infrastructure Ltd IPO?
The price band of Afcons Infrastructure Ltd IPO is ₹440 to ₹463.
Where can I read more about Afcons Infrastructure Ltd business?
You can read more about Afcons Infrastructure Ltd and its IPO from the company’s red herring prospectus (RHP) here.
What is the Afcons Infrastructure Limited IPO?
The Afcon Infrastructure Limited IPO has an issue size of 5430 crores. The IPO opens for subscription on 25/10/2024 and closes on 29/10/2024.
Who is the Registrar for Afcons Infrastructure Limited IPO?
Kfin Technologies Limited is the registrar for this IPO.
