1) What is the business overview of Afcons Infrastructure?
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.
2) What is the industry overview of Afcons Infrastructure?
The Indian construction industry value stood at Rs 23.97 lakh crore as of the Financial Year 2023 and is projected to be the fastest growing construction market in the world, growing at a CAGR of 9.5% to 10% between the Financial Years 2023 and 2028 to reach a market size of Rs 38.5 lakh crore by the Financial Year 2028
3) What is the current GMP of Afcons Infrastructure?
According to market analysts, the current GMP of Garuda Construction and Engineering is Rs 60, indicating a premium of 13% to the issue.
4) What is the size of Afcons Infrastructure IPO?
The IPO is a combination of a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 4,180 crore by promoter Goswami Infratech.
5) What is the price band for Afcons Infrastructure IPO?
The company has fixed a price band of Rs 440-463 per share, where investors can bid for 32 shares in one lot.
6) What is the structure of Afcons Infrastructure IPO?
About 50% in the public offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
7) How is the financial performance of Afcons Infrastructure?
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.
8) What are the objects of Afcons Infrastructure IPO?
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.
9) Who are the book running lead managers for Afcons Infrastructure IPO?
ICICI Securities, DAM Capital Advisors, Jefferies India, Nomura Financial Advisory and Securities (India), Nuvama Wealth Management, and SBI Capital Markets are the book-running lead managers to the issue.
10) When is the share allotment and listing date of Afcons Infrastructure IPO?
The share allotment for the IPO will likely be finalised on October 30 and the company is anticipated to list on stock exchanges on November 4.