Afcons Infrastructure
Book Building issueMainboardNSE₹5,430 Cr issue
-7.12%
Listing gain over issue price
Issue size
₹5,430 Cr
1 lot at cut-off
₹14,816
Lot size
32shares
Open
25 Oct 2024
Close
29 Oct 2024
Allotment
30 Oct 2024
Listing
04 Nov 2024
Listing performance
Issue price
₹463
Listed at
₹430.05
Listing-day close
₹474.55
Latest price
₹217.84
Close on 23 Oct 2026
Listing gain
-7.12%
Return since issue
-52.95%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Oct 2024 – 29 Oct 2024
- Listing date
- 04 Nov 2024
- Face value
- ₹10 per share
- Issue price
- ₹463 per share
- Lot size
- 32 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹5,430 Cr
- Market cap at offer price
- ₹17,026 Cr
- Promoter holding
- 80.64% → 50.17% pre-issue → post-issue
- ISIN
- INE101I01011
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- Afcons House, 16 Shah Industrial Estate, Veera Desai Road, ndheri (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 3,50,21,597 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 32 shares per lot, in multiples, at ₹463
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 32 | ₹14,816 |
| Retail (max) | 13 | 416 | ₹1,92,608 |
| S-HNI (min) | 14 | 448 | ₹2,07,424 |
| S-HNI (max) | 67 | 2,144 | ₹9,92,672 |
| B-HNI (min) | 68 | 2,176 | ₹10,07,488 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
3,50,21,597
Anchor portion
₹1,622 Cr
at ₹463 per share
Valuation and performance
Valuation at offer price
₹463 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 13.20 | 9.96 |
| P/E (×) | 35.08 | 46.49 |
| Price to book (×) | 4.31 | — |
| Market cap | — | ₹17,026 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 2.50%
- ROCE
- 14.89%
- Debt / equity
- 0.91
- PAT margin
- 2.85%
- NAV per share
- ₹107.48
- Price to book
- 4.31
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Afcons Infrastructure
Afcons Infrastructure Limited, established in 1959 as a civil construction firm, is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group. The company has a strong track record of executing technologically complex EPC projects both domestically and internationally. Over eleven financial years and the three-month period ended June 30, 2024, the company has successfully completed 79 projects across 17 countries with a total historic executed contract value of ₹563.05 billion. The company typically engages in competitive bidding for contracts that fall into categories including EPC contracts (72.37% of construction contract revenue), item rate contracts (27.38%), and cost plus contracts (0.25%). The company finances its operations through working capital facilities, including cash credit facilities, working capital demand loans, bill discounting, and vendor financing.
Company Analysis
from RHPAfcons Infrastructure Limited is a flagship engineering, procurement and construction (EPC) contractor executing large-scale infrastructure projects in India and internationally across segments including roads, railways, ports, tunnels, and water systems.
Afcons Infrastructure Limited, established in 1959 as a civil construction firm, is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group. The company has a strong track record of executing technologically complex EPC projects both domestically and internationally. Over eleven financial years and the three-month period ended June 30, 2024, the company has successfully completed 79 projects across 17 countries with a total historic executed contract value of ₹563.05 billion. The company typically engages in competitive bidding for contracts that fall into categories including EPC contracts (72.37% of construction contract revenue), item rate contracts (27.38%), and cost plus contracts (0.25%). The company finances its operations through working capital facilities, including cash credit facilities, working capital demand loans, bill discounting, and vendor financing.
Infrastructure Engineering and ConstructionRoads and HighwaysRailwaysPorts and WaterwaysTunnelsWater Supply SystemsOil and GasPower
Objects of the Issue
- Capital expenditure towards purchase of construction equipment ₹800 million p.24
- Funding long term working capital requirements ₹3,200 million p.24
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by our Company ₹6,000 million p.24
- General corporate purposes p.24
- Capital expenditure towards purchase of construction equipment p.104
- Funding long term working capital requirements p.104
- Prepayment or scheduled repayment of outstanding borrowings and acceptances p.104
- General corporate purposes p.104
- Capital expenditure towards purchase of construction equipments ₹800 million p.168
- Funding long term working capital requirements ₹3,200 million p.168
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by our Company ₹6,000 million p.168
- General corporate purposes p.168
- The document does not contain a specific 'Objects of the Offer' section detailing the use of proceeds from this IPO
Issue Structure
- Total Issue
- Up to ₹54,300 million
- Fresh Issue
- Up to ₹12,500 million
- Offer for Sale
- Up to ₹41,800 million by Goswami Infratech Private Limited
- Price Band
- [●] per Equity Share of face value of ₹10 each (to be determined)
- Lot Size
- [●] Equity Shares (to be determined)
- Face Value
- ₹10 each
Business Model
The company earns revenue through engineering, procurement and construction contracts for infrastructure projects. Revenue is derived primarily from EPC contracts, item rate contracts, and cost plus contracts. The company operates through a competitive bidding process, with significant dependence on both government/government-owned customers (69.80% of order book as of June 30, 2024) and private sector clients. Working capital requirements are financed through banking facilities and project financing arrangements.
Business Segments
Executes EPC contracts, item rate contracts, and cost plus contracts for infrastructure projects including roads, railways, ports, tunnels, water systems, and other infrastructure development across India and internationally
Execution of hydroelectric power generation projects
Execution of marine and industrial infrastructure projects
Execution of urban infrastructure projects including metro rail systems
Execution of surface transport infrastructure projects
Execution of underground and tunnelling projects
Execution of water supply and desalination projects
Execution of oil and gas infrastructure projects
Civil construction and foundation engineering services
Dredging and marine construction services
Executes engineering, procurement, and construction contracts for large-scale infrastructure projects in marine, bridges, transportation, transmission lines, and aqueducts sectors
Covers projects related to ports and harbours, jetties, dry docks, wet basins, breakwaters, outfall and intake structures, LNG tanks and material handling systems
Covers highways and roads, interchanges, mining-related infrastructure, and railways
Focuses on metro works, bridges, and flyovers
Focuses on offshore oil and gas and onshore oil and gas segments
Focuses on dams and barrages, tunnels and underground works, and water and irrigation
Covers ports and harbor jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks and material handling systems
Covers highways and roads, interchanges, mining related infrastructure and railways including laying of new roads, rehabilitation and strengthening of existing roads, construction of bridges and flyovers, tunnels, and railway bridges
Covers elevated and underground metro works, bridges, flyovers and elevated corridors including construction of over 120 km of elevated and underground metro networks, over 150 bridges, viaducts and flyovers and 32 metro stations across nine cities
Covers dams and barrages, tunnels including large road tunnels, underground works, water and irrigation, with experience in over 50 km of underground tunnels through NATM method
Covers onshore and offshore oil and gas projects including engineering, procurement, fabrication, load out, installation and commissioning with over 57.2 million Safe Man Hours recorded
Construction of metro rail systems, underground rail networks, and elevated metro viaducts in cities including Delhi, Kolkata, Chennai, Kanpur, and Meerut
Construction of highways, expressways, and road projects including the Agra Lucknow Expressway and Jammu-Udhampur 4-laning of NH-1A
Construction of ports, jetties, wharves, breakwaters, and marine infrastructure including work at Jawaharlal Nehru Port Trust and Gopalpur Port
Construction of hydroelectric power projects, dams, and underground facilities including the Kol Dam Hydro Electric Power Project
Construction of railway tunnels, bridges, and rail infrastructure including the Atal Tunnel at Rohtang and the Chenab Rail Bridge
Construction of offshore platforms, pipelines, and oil & gas infrastructure including the ICPR Process Platform and Crude Oil Terminal at Mundra
Construction of water supply pipelines, transmission systems, irrigation projects, and domestic water supply infrastructure
Construction and infrastructure services operations within India
Construction and infrastructure services operations in countries outside India
Covers ports and harbour jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks and material handling systems
Covers highways and roads, interchanges, mining related infrastructure and railways
Covers elevated and underground metro works
Covers bridges, flyovers and elevated corridors
Covers dams and barrages, tunnels (including large road tunnels) and underground works, water and irrigation
Covers both offshore and onshore oil and gas projects
Construction of metro rail and underground metro stations
Tunnelling and underground construction projects
Highway and railway construction projects
Marine infrastructure and industrial construction projects
Oil and gas sector infrastructure projects
SWOT Analysis
Strengths
- • Leading international infrastructure construction company with strong track record(p.23)
- • Extensive project execution experience across multiple countries and contract types(p.23)
- • Diversified contract portfolio with multiple delivery models(p.23)
- • Strong track record of timely execution of large-scale, complex projects across multiple countries(p.184)
- • Recognized as 10th largest international marine and port facilities contractor globally and only Indian company in top 25(p.184)
- • Large and strategically valuable equipment base valued at approximately US$490 million(p.184)
- • Strong order book providing revenue visibility; ₹317,474.27 million as of June 30, 2024(p.184)
- • Recognition for knowledge management and innovation; only Indian infrastructure company to win MIKE award six times in a row(p.185)
- • Experienced leadership team backed by Shapoorji Pallonji Group heritage of over 150 years in construction(p.185)
- • Leading international infrastructure contractor with significant scale and capability(p.271)
- • Top-tier global rankings across multiple infrastructure segments(p.271)
- • Proven track record of executing complex, first-of-a-kind projects ahead of schedule(p.272)
- • Substantial strategic equipment fleet providing competitive advantage(p.276)
- • Strong recognition in knowledge management and innovation at global level(p.275)
- • Diversified geographic presence across 30 countries enabling agile supply chain(p.271)
- • Strong order book and consistent project wins demonstrating market confidence(p.276)
- • Strong financial rating and credit profile(p.275)
- • Strong track record of timely delivery of large-scale, complex projects across geographies(p.293)
- • Diversified order book across business verticals, geographies, clients and long-standing client relationships(p.294)
- • Strategic equipment base with specialized machinery providing competitive advantage(p.296)
- • Knowledge management practices and innovation framework recognized through multiple awards(p.297)
- • Experienced leadership team with strong Shapoorji Pallonji Group backing(p.297)
- • Highest ROCE and second-highest ROE among large Indian infrastructure peers(p.287)
- • Established financial infrastructure subsidiaries and joint venture relationships globally(p.397)
- • Diversified geographic presence across multiple continents and infrastructure segments(p.449)
- • Revenue growth and operational scale with consistent year-on-year expansion(p.445)
- • One of India's largest international infrastructure companies by international revenue(p.569)
- • Highest ROCE and EBITDA margins among large infrastructure construction companies in India(p.569)
- • Fastest PAT growth rate among peers (FY 2022-2024)(p.569)
- • Strong order book providing clear revenue visibility(p.549)
- • Extensive international project execution experience across 17 countries(p.569)
- • Strategic parentage from Shapoorji Pallonji Group with 150+ year legacy(p.570)
- • MAKE/MIKE award recognition for knowledge management excellence(p.570)
- • Five Star Export House status from Indian government(p.570)
- • Diversified revenue growth across business segments and geographies(p.590)
- • Strong international presence with revenue diversification(p.590)
- • Established order book with longstanding client relationships(p.590)
- • Profitable operations with improving profit margins(p.593)
- • Strong cash generation from operations(p.593)
Weaknesses
- • High dependence on government and government-owned customers(p.46)
- • Capital intensive business model requiring substantial working capital(p.49)
- • Significant receivables collection risks from customers(p.50)
- • Exposure to material litigation and contingent liabilities(p.26)
- • High dependence on working capital financing with significant borrowings relative to equity(p.173)
- • Negative operating cash flows in recent periods; CFO of (₹5,022.05) million for Q1 FY2025(p.189)
- • Working capital requirements have increased significantly; net working capital days increased to 94 from 63 in FY2024(p.189)
- • Elevated net debt levels; Net Debt to EBITDA ratio of 1.66x as of June 30, 2024(p.189)
- • Significant reliance on cyclical government infrastructure spending(p.272)
- • Project execution delays and cost overruns prevalent in Indian infrastructure sector(p.238)
- • Price competition as primary determining factor in tender awards limiting margins(p.272)
- • Elevated Net Debt to EBITDA ratio at 1.66x as of June 30, 2024(p.292)
- • Negative operating cash flow in recent quarters despite positive annual cash flows(p.292)
- • Dependence on two major steel suppliers for significant portion of materials(p.327)
- • Concentrated customer base with top five customers representing 45.84% of order book(p.335)
- • Significant contingent liabilities from multiple arbitration and legal proceedings across joint ventures(p.450)
- • High debt levels and increasing borrowing requirements(p.447)
- • Substantial delays in recovery of contract assets and trade receivables from customers(p.455)
- • Complex and fragmented subsidiary and JV structure with unaudited and partially audited components(p.424)
- • Multiple subsidiaries with going concern uncertainties(p.547)
- • Eroded net worth in jointly controlled operations due to accumulated losses(p.547)
- • Significant accumulated losses in Oil and Gas Services subsidiary(p.548)
- • Increasing net debt to EBITDA ratio(p.568)
- • Rising finance costs significantly outpacing revenue growth(p.589)
- • Transactions with struck-off companies indicating vendor/contractor credit issues(p.552)
- • Material uncertainty regarding going concern for key joint venture(p.547)
- • High leverage and rising finance costs(p.594)
- • Significant dependence on government/government-owned customers(p.598)
- • Rising employee and operational costs impacting margins(p.590)
- • Substantial contingent liabilities related to royalty claims(p.595)
- • Multiple ongoing tax disputes and litigation(p.623)
Opportunities
- • India's rapidly growing construction market with strong infrastructure focus(p.23)
- • Global construction industry growth and emerging market opportunities(p.23)
- • India positioned as fastest-growing major economy with sustained infrastructure investment(p.23)
- • Expansion into high-end sub-contracting with increased advance payments to sub-contractors(p.174)
- • Capital equipment investment for HSR and CIDCO projects to support growth(p.169)
- • Long-term working capital funding to support incremental growth in India and overseas expansion(p.173)
- • Domestic order book represents 75.61% of total order book, with strong domestic infrastructure development focus(p.188)
- • Robust infrastructure investment cycle with government capex increasing substantially(p.227)
- • India projected to be the fastest growing construction market globally with 9.5-10% CAGR(p.270)
- • Large pipeline of transport infrastructure projects with multi-year growth trajectory(p.271)
- • Massive metro rail expansion opportunity across 100+ cities with substantial capex(p.253)
- • Record private sector capex cycle beginning with bank-financed projects at all-time high(p.242)
- • Significant opportunities in water supply, irrigation and waste management sectors(p.269)
- • Rising FDI in Indian infrastructure sector with relaxed FDI regulations(p.244)
- • Strategic port infrastructure development opportunity with mega projects(p.262)
- • Indian infrastructure sector growth trajectory and government spending(p.291)
- • Pursue large-value and complex projects with fewer competing bidders(p.298)
- • Geographic diversification and expansion in overseas developing markets(p.299)
- • Recent order wins and strong pipeline with L1 bidder status on large projects(p.294)
- • Infrastructure expansion in emerging African and Middle Eastern markets through subsidiaries and joint ventures(p.449)
- • Leveraging established joint ventures for major government-awarded infrastructure projects(p.404)
- • Expected 9.9% CAGR in Indian infrastructure industry through FY 2028(p.570)
- • Urbanization-driven demand for smart cities and transit infrastructure in India(p.571)
- • Government of India's increased capital expenditure commitment(p.571)
- • Growth in emerging markets across Asia, Africa and MENA regions(p.571)
- • Strong global presence positioning for international infrastructure expansion(p.569)
- • Order book of ₹317.47 billion providing medium-term revenue visibility(p.569)
- • Expansion of Urban Infrastructure and Underground business verticals(p.590)
- • Growing overseas project opportunities(p.590)
- • Capital expenditure plans for equipment expansion(p.595)
- • Beneficial foreign exchange movements(p.590)
Threats
- • Dependence on competitive bidding and contract award process success(p.45)
- • Government budgetary and policy uncertainties affecting infrastructure spending(p.47)
- • EXIM Bank payment holds due to customer defaults(p.48)
- • Unfavorable contractual terms in government contracts limiting company flexibility(p.47)
- • Objects of Offer not appraised by any bank or financial institution; appraisal risk(p.180)
- • Uncertainty in project execution timelines and costs due to external factors including epidemics and competitive environment(p.169)
- • Risk of failure or inability to utilize proceeds as planned; potential regulatory constraints(p.169)
- • Global construction growth slowdown with developed markets particularly weak(p.230)
- • Geopolitical tensions and global uncertainty affecting project financing and execution(p.244)
- • Tighter monetary policy globally increasing financing costs for construction projects(p.231)
- • Intense competition from established large infrastructure contractors both Indian and international(p.272)
- • Regulatory delays and environmental clearances impacting project timelines(p.238)
- • Infrastructure project implementation delays and cost overruns reducing contractor profitability(p.238)
- • Slowdown in emerging market construction with India's projected deceleration from 8.5% to 6.4%(p.230)
- • Global commodity and fuel price volatility impacting project costs and margins(p.232)
- • Reliance on government spending and policy changes affecting project availability(p.285)
- • Land acquisition delays causing project delays and cost overruns(p.285)
- • Shortage of skilled labour affecting project execution(p.285)
- • Cost inflation in raw materials creating financial uncertainty(p.285)
- • Global macroeconomic headwinds and geopolitical tensions(p.285)
- • Ongoing and uncertain outcomes of multiple arbitration cases affecting major projects and cash recovery(p.450)
- • Regulatory and contractual execution risks across geographically dispersed operations(p.458)
- • Dependence on project awards and completion with volatile cash flows from construction contracts(p.404)
- • Macroeconomic conditions and global economic slowdown affecting infrastructure demand(p.571)
- • Volatile commodity prices affecting construction material costs(p.573)
- • Inflation impact on construction costs and borrowing rates(p.571)
- • Foreign exchange rate volatility on international projects(p.572)
- • Political and regulatory developments in countries of operation(p.571)
- • High logistics costs and supply chain challenges in landlocked African countries(p.572)
- • Intense competition in certain business verticals (elevated metro, elevated corridors, bridges) with price pressure(p.572)
- • Loss on arbitration award (JPMC Jordan project settlement)(p.551)
- • Rising input costs including power and fuel(p.590)
- • Business subject to seasonal and climatic fluctuations(p.598)
- • Foreign exchange rate volatility exposure(p.597)
- • Interest rate risk on floating-rate borrowings(p.597)
- • Supplier concentration and supply chain risks(p.598)
- • Regulatory and compliance risks requiring ongoing permits and approvals(p.632)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Goswami Infratech Private Limited | Promoter/Selling Shareholder | 71.87% | — |
| Shapoorji Pallonji and Company Private Limited | Promoter | 16.63% | — |
| Floreat Investments Private Limited | Promoter | 8.12% | — |
| Shapoorji Pallonji Mistry | Individual Promoter | — | — |
| Firoz Cyrus Mistry | Individual Promoter | — | — |
| Zahan Cyrus Mistry | Individual Promoter | — | — |
| Goswami Infratech Private Limited | Corporate Promoter | — | — |
| Shapoorji Pallonji and Company Private Limited | Corporate Promoter | — | — |
| Floreat Investments Private Limited | Corporate Promoter | — | — |
| Hermes Commerce Private Limited | Promoter Group | — | — |
| Renaissance Commerce Private Limited | Promoter Group | — | — |
| Goswami Infratech Private Limited | Promoter | 71.87% | — |
| Shapoorji Pallonji and Company Private Limited | Promoter | 16.63% | — |
| Floreat Investments Private Limited | Promoter | 8.12% | — |
| Shapoorji Pallonji Mistry | Promoter | 0% | — |
| Firoz Cyrus Mistry | Promoter | 0% | — |
| Zahan Cyrus Mistry | Promoter | 0% | — |
| Goswami Infratech Private Limited | Promoter | 53.52% | — |
| Shapoorji Pallonji and Company Private Limited | Promoter | 16.63% | — |
| Floreat Investments Private Limited | Promoter | 8.12% | — |
| Hermes Commerce Private Limited | Promoter Group | 1.19% | — |
| Renaissance Commerce Private Limited | Promoter Group | 1.18% | — |
| Goswami Infratech Private Limited | Parent company (Shapoorji Pallonji Group) | — | — |
| Shapoorji Pallonji Group | Promoter Group | — | — |
| Goswami Infratech Private Limited | Promoter | — | — |
| Shapoorji Pallonji and Company Private Limited | Promoter | — | — |
| Floreat Investments Private Limited | Promoter | — | — |
| Shapoorji Pallonji Mistry | Promoter | — | — |
| Firoz Cyrus Mistry | Promoter | — | — |
| Zahan Cyrus Mistry | Promoter | — | — |
| Goswami Infratech Private Limited | Parent Company (w.e.f January 13, 2024) | — | — |
| Shapoorji Pallonji and Company Private Limited | Former Parent Company (upto January 12, 2024) | — | — |
| Goswami Infratech Private Limited | Promoter | 72.35% | — |
| Shapoorji Pallonji & Company Private Limited | Promoter | 16.63% | — |
| Floreat Investments Private Limited | Promoter | 8.12% | — |
| Shapoorji Pallonji & Company Private Limited | Parent Company till 12th January 2024; Entity having significant influence w.e.f. 13th January 2024 | — | — |
| Goswami Infratech Private Limited | Parent company w.e.f. 13th January 2024 | — | — |
| Goswami Infratech Private Limited | Selling Shareholder | — | — |
Leadership
Paramasivan Srinivasan · Managing Director
Subramanian Krishnamurthy · Executive Vice Chairman
Giridhar Rajagopalan · Deputy Managing Director
Ramesh Kumar Jha · Chief Financial Officer
Gaurang Maheshchandra Parekh · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Afcons Infrastructure IPO FAQs
What is the lot size of Afcons Infrastructure IPO?
The minimum lot size of Afcons Infrastructure IPO is 32 shares. One lot costs ₹14,816 at the cut-off price.
When does Afcons Infrastructure IPO open and close?
Afcons Infrastructure IPO opened for subscription on 25 Oct 2024 and closed on 29 Oct 2024.
What is the listing date of Afcons Infrastructure IPO?
Afcons Infrastructure IPO listed on 04 Nov 2024.