Afcons Infrastructure Plans IPO Worth Rs 5,000-8,000 Crore
Afcons Infrastructure, a renowned construction and engineering company backed by the well-established conglomerate Shapoorji Pallonji Group, has made significant progress toward its upcoming Initial Public Offering (IPO). The company has shortlisted five investment banks to facilitate the Afcons Infrastructure IPO, aiming to raise a substantial amount between Rs 50 billion and Rs 80 billion.
Following the footsteps of its fellow Shapoorji Pallonji Group firm, Sterling and Wilson Solar, which successfully listed on a domestic exchange in August 2019, Afcons is now considering the sale of a controlling interest to raise potentially over $2 billion.
Recent reports reveal that Afcons has initiated discussions with several banks regarding the IPO. Additionally, the company has reached out to Middle Eastern investors, exploring the possibility of a strategic sale. Both options of going public and pursuing a disposal are being carefully evaluated. It’s worth noting that the holding company of SP Group, Shapoorji Pallonji and Company (SPCPL), currently carries a debt of more than Rs 20,000 crore and holds an 18.37 percent stake in Tata Sons.
Afcons: Preparing to Make Waves in the Stock Market Afcons, with a market value of $1.25 billion and a fleet of key equipment valued at $350 million, holds the distinction of being one of India’s largest and fastest-growing infrastructure corporations. The company excels in maritime, LNG, and metro rail projects within India and boasts an extensive presence across Asia, Africa, and the Middle East with projects in over 25 countries.
The business divisions of Afcons encompass oil and gas, hydro, underground and surface transportation, maritime and industrial, as well as urban infrastructure. According to the company’s official website, Afcons is ranked seventh globally for marine and port facilities and sixteenth for bridges.
At the helm of Afcons is Chairman Shapoor Pallonji Mistry, supported by Executive Vice-Chairman K Subramanian and Managing Director S Paramasivan, who lead the company towards its continued success.
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The annual report for 2022 published by Afcons reveals a total revenue of Rs 112.69 billion, marking an 18.36% increase compared to Rs 95.21 billion in the previous year. Furthermore, the company witnessed an impressive 19.08% rise in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA), reaching Rs 10.68 billion in the year compared to Rs 8.97 billion in the preceding year.
Moreover, the consolidated Profit After Tax (PAT) soared by an impressive 110.49% from Rs 1.69 billion to Rs 3.57 billion, surpassing the previous year’s figures. As of March 31, 2022, Afcons boasted a robust order book worth Rs 328.5 billion.
About Afcons Infrastructure:
Afcons Infrastructure, a company specializing in infrastructure services, is actively engaged in the construction of various projects including viaducts, flyovers, metros, bridges, pipelines, roads, ports, barrages, and oil and gas projects. This well-established firm was acquired by the Indian business conglomerate Shapoorji Pallonji Group from ICICI Bank in 2000.
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