NEW DELHI: Shapoorji Pallonji Group’s flagship infrastructure engineering and construction firm, Afcons Infrastructure Ltd (AIL), announced on Thursday that it had raised Rs1,621 crore from anchor investors a day before opening its Rs5,430-crore initial share sale for public subscription.
Foreign and domestic institutions participating in the anchor book include prominent names like HDFC Mutual Fund, ICICI Prudential Mutual Fund, BlackRock, Fidelity Investments, Goldman Sachs, HSBC Group, Nomura, Nippon India Mutual Fund, and SBI General Insurance, among others.
The company allocated over 3.5 crore equity shares to 80 funds at Rs463 per share, the upper end of its price band. This brings the total transaction size to Rs1,621.5 crore, as per a circular uploaded on the BSE website.
Out of the 3.5 crore equity shares, 1.17 crore shares worth Rs542.2 crore were allocated to 15 domestic mutual funds across 31 schemes, making up 33.44 per cent of the total anchor book size.
Subscription to open on Oct 25
The Rs5,430-crore initial public offering (IPO) will open for public subscription on October 25 and close on October 29. The price band has been set at Rs440-463 per share. The IPO consists of a fresh issue worth Rs1,250 crore and an offer for sale (OFS) by promoter Goswami Infratech Private Limited of up to Rs4,180 crore, reduced from its initial Rs7,000 crore plan post a pre-IPO fundraising.
Afcons, currently 99 per cent owned by promoter and promoter group entities, will use Rs80 crore of fresh issue proceeds to acquire construction equipment, Rs320 crore for long-term working capital, Rs600 crore to repay debt, and the rest for general corporate purposes.
The Shapoorji Pallonji Group, founded in 1865, is a diversified institution with a significant presence in engineering & construction, infrastructure, real estate, water, energy, and financial services globally.
Afcons benchmarks itself against peers like Larsen & Toubro, KEC International, Kalpataru Projects, and Dilip Buildcon.
ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory, Nuvama Wealth Management, and SBI Capital Markets are the lead managers for the issue.
