Considering the upper price band of Rs 463, the stock is expected to list a premium of 3% over the issue price.
However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
The company will utilise Rs 80 crore from the fresh issue proceeds to buy construction equipment, Rs 320 crore for long-term working capital, Rs 600 crore to repay debt, and the rest for general corporate purposes.
Afcons Infrastructure has a proven track record of successfully delivering a wide range of complex and challenging engineering, procurement, and construction (EPC) projects both domestically and internationally. According to the Fitch Report, Afcons is recognized as one of India’s leading international infrastructure firms, as per the 2023 rankings by Engineering News-Record (ENR) based on international revenue for the financial year 2023.
The company operates across five major infrastructure business verticals including marine and industrial, surface transport, urban infrastructure, hydro and underground, and oil and gas.Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified group and has a leading presence in engineering & construction, infrastructure, real estate, water, energy and financial services sectors across the globe.In terms of listed industry peers, Afcons compares itself with Larsen & Toubro Ltd (L&T), KEC International Limited (KEC), Kalpataru Project International Ltd (KPIL), and Dilip Buildcon Ltd( DBL).
For the year ending March 2024, the company’s revenue from operations fell marginally to Rs 3154 crore and the profit after tax rose to Rs 91.6 crore from Rs 90.9 crore a year ago.
ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets acted as the book-running lead managers to the issue.