Afcons Infrastructure Share Price

Afcons Infrastructure Ltd

Afcons Infrastructure Limited has its origin in 1959 when it started as a civil construction company by the name Rodio Foundation Engineering Limited and Hazarat Company. The company was a joint venture between Rodio Foundation Engineering Limited, a Swiss foundation engineering company, and Hazarat Company, an Indian construction company. Over the years, this partnership established itself in the Indian infrastructure business and set the stage for what would come to be known as Afcons Infrastructure Limited.

Growth Trajectory and Rebranding

Recognizing the need for expansion and formal incorporation, a new company was registered under the name Asia Foundations and Constructions Private Limited on November 22, 1976. This marked a significant milestone in the company’s history, providing it with a structured corporate identity. Shortly thereafter, on March 22, 1977, all assets, undertakings, and business operations of the original partnership firm were transferred to the newly incorporated company as a running concern. This transition enabled a seamless continuation of projects and further strengthened its foothold in the industry.

The company also went through various structure and identity transformations over the years in alignment with its growth path. It was first classified as a public limited company and later renamed Asia Foundations and Constructions Limited. As the scale of its operation grew and its vision changed, it renamed itself as Afcons Infrastructure Limited. Such a change was legally recognised with the issuance of a new Certificate of Incorporation on August 14, 1996, by the Registrar of Companies (RoC). In the subsequent year, on November 11, 1997, Afcons Infrastructure Limited made the shift from being a deemed public company to becoming a fully acknowledged Public Limited Company, acknowledging its plans for increased market reach and financial growth.

Integration into the Shapoorji Pallonji Group

A pivotal development in the company’s history occurred in the year 2000 when Sterling Investment Corporation Limited, a subsidiary of the prestigious Shapoorji Pallonji Group, acquired a controlling stake in Afcons Infrastructure Limited. This acquisition further solidified Afcons’ position in the infrastructure sector by providing access to financial strength, global expertise, and a strong brand legacy associated with the Shapoorji Pallonji Group. Under this new leadership, Afcons expanded its capabilities and diversified its project portfolio, thus positively impacting the Afcons Infrastructure Ltd share price.

Afcons Infrastructure Limited is the flagship infrastructure engineering and construction division of the Shapoorji Pallonji Group today. Its quality image, technical competence, and implementation of large engineering, procurement and construction (EPC) projects have helped it position itself as a front-runner in the infrastructure business both in India and overseas.

Diverse Business Verticals and Areas of Expertise

Afcons Infrastructure Limited has a strong track record of successfully executing a wide array of large-scale infrastructure projects across different domains. The company’s expertise spans across multiple infrastructure business verticals.

One of the major verticals is Marine and Industrial, encompassing port construction, harbor jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas (LNG) tanks and material handling systems. With its long-standing experience in marine infrastructure, Afcons has been greatly instrumental in India's coastal development and global marine projects.

Another key segment is Surface Transport, encompassing highways, roads, interchanges, mining-related infrastructure and railway projects. Afcons has played a great role in developing transportation networks that enhance connectivity, improve logistics efficiency and contribute to economic growth.

The company has also been greatly instrumental in Urban Infrastructure, where it undertakes elevated and underground metro works, the construction of bridges, flyovers and elevated corridors. These projects are pretty important for addressing urban congestion, improving public transport systems and enhancing the overall quality of life in metropolitan areas.

Afcons has had a great impact on the Hydro and Underground division by undertaking massive projects like dams, barrages, tunnels (including large road tunnels), underground structures and water and irrigation schemes. Such projects are decisive in managing water resources, flood control and power generation.

Furthermore, the company has a strong presence in the Oil and Gas sector, executing both offshore and onshore projects. This includes the construction of offshore platforms, pipelines, storage facilities, and refineries, contributing to the energy security and industrial growth of the regions in which it operates.

Historical Milestones and Expansion

Afcons Infrastructure Limited has consistently grown in reach and scope over the years. Its story is punctuated by significant landmarks that reflect its capacity to innovate and deliver demanding projects.

The company first ventured into marine construction in 1965 when Rodio Foundation Engineering Limited and Hazarat Company commenced operations in this sector. This expertise was further extended to international markets in 1974 when the firm undertook the construction of a jetty and intake structure for a desalination plant in Muscat, marking its entry into the overseas market.

By 1979, the company expanded into bridge construction, which later became one of its core competencies. In 1988, Afcons entered the road construction sector, leveraging opportunities presented by large-scale projects funded by global institutions like the World Bank and the Asian Development Bank.

The company stepped into the hydropower segment through a greatly planned move in 2005 with the initiation of the Kol Dam Hydro Electric Power Project in Himachal Pradesh. Around the same time, it also diversified into the rail infrastructure business by constructing tunnels for the Udhampur-Srinagar-Baramulla Rail Link Project.

Landmark Projects and Achievements

Afcons has been associated with some of the greatest, most iconic infrastructure projects in India and abroad. Some of its notable achievements include:

Ghana Railway Project (2024): Afcons successfully completed the construction of the longest railway bridge in Ghana over Lake Volta, greatly enhancing the country’s transportation network.

Chenab Railway Bridge, Jammu & Kashmir: The company played a key role in constructing the tallest single-arch railway bridge in the world over the Chenab River, a marvel of modern engineering.

Atal Tunnel, Rohtang: At an altitude of 3,000 meters, this tunnel is a critical infrastructure project that provides all-weather connectivity between Manali and Leh.

MG Setu Bridge, Patna, Bihar: A key infrastructure project that greatly enhances connectivity in Bihar.

Annaram Barrage (Kaleshwaram Lift Irrigation Project, Telangana): A crucial water infrastructure project aimed at improving irrigation and water distribution.

Fourth Container Terminal, Jawaharlal Nehru Port Trust (JNPT), Mumbai: A significant project enhancing India’s port capacity and trade efficiency.

Lusaka City Decongestion Project, Zambia: Afcons contributed to Zambia’s infrastructure by constructing the first flyover in Lusaka, aiding urban mobility.

Public Listing and Future Growth

Afcons Infrastructure Limited made a great move towards its future expansion in October 2024 by making an Initial Public Offering (IPO) of raising ₹5,430 crore. This consisted of a fresh issue worth ₹1,250 crore and an offer for sale worth ₹4,180 crore, with the face value being ₹10 per share. The IPO was a great financial milestone for the organization, as it allowed it to expand its operations further, improve technological capacity and undertake even bigger infrastructure projects.

Brief Overview

With its proven skill set of centuries, drive towards innovation and a strong bouquet of completed high-profile projects, Afcons Infrastructure Limited further strengthens its hold in the construction and infrastructure business as a top class player. Expansion in India, Africa and the Middle East, together with its capacity for handling challenging, high-end size projects, firmly establishes its standing as a tested and trail-blazing engineering mammoth.