 |
|
Afcons Infrastructure, the flagship infrastructure engineering and construction firm of the Shapoorji Pallonji Group, has successfully concluded its initial public offering (IPO). The IPO, which was launched on Tuesday, witnessed strong investor interest, achieving a total subscription of 2.63 times on the final day of the share sale. The IPO aimed to raise Rs 5,430 crore, with bids received for 22,78,13,728 shares against the 8,66,19,950 shares offered. This indicates a strong demand for the company's shares from investors.
The subscription levels across different investor categories were encouraging. Non-institutional investors exhibited significant enthusiasm, subscribing to the offering 5.05 times. The portion reserved for Qualified Institutional Buyers (QIBs) also saw robust demand, with a 3.79 times subscription. Retail Individual Investors (RIIs) participated actively, subscribing to 94 per cent of the quota allocated to them. This demonstrates confidence in the company's future prospects from a diverse range of investors.
Afcons Infrastructure, prior to the IPO, secured Rs 1,621 crore from anchor investors. The company has planned to use the proceeds from the fresh issue of shares for various strategic purposes. These include the acquisition of construction equipment (Rs 80 crore), strengthening long-term working capital (Rs 320 crore), reducing debt (Rs 600 crore), and general corporate initiatives. The remaining funds will be allocated as per the company's strategic priorities.
Established in 1865, the Shapoorji Pallonji Group is a renowned multinational conglomerate with a diversified portfolio of businesses. The group holds a prominent position in sectors such as engineering and construction, infrastructure, real estate, water, energy, and financial services. Afcons Infrastructure, as a subsidiary of the group, benefits from the legacy and expertise of the parent company, making it a valuable investment opportunity for investors seeking exposure to the infrastructure sector.
The IPO was managed by a consortium of leading investment banks, including ICICI Securities Ltd, DAM Capital Advisors Ltd, Jefferies India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd. These institutions played a key role in the successful execution of the IPO, facilitating the process of raising capital for Afcons Infrastructure.
Source: Afcons Infrastructure IPO subscribed 2.63 times on last day of share sale