Shapoorji Pallonji Group's Afcons Infrastructure sets price band for its IPO. Check details

The initial public offer (IPO) of Afcons Infrastructure will open for subscription on October 25 and bidding for the issue can be done till October 29. Through the IPO, the Shapoorji Pallonji Group's infrastructure engineering and construction company plans to raise around Rs 5430 crore.

The company has fixed a price band of Rs 440-463 per share, where investors can bid for 32 shares in one lot.

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.


The offer size has been reduced following a pre-IPO fundraising. In the March draft papers, the company had initially planned to raise Rs 7,000 crore through the initial share sale.

Currently, promoter and promoter group entities own a 99% stake in Maharashtra-based Afcons Infrastructure.

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.
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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).

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.