Afcons Infrastructure Limited, a leading construction and engineering company in India, is set to launch its Initial Public Offering (IPO) in October 2024. The company aims to raise ₹6,500 crores through the IPO.

Key Details:

• Issue Type: Main Board IPO
• Face Value:₹10 per share
• Lot Size: 32 shares
• Total Size:₹5,430.00 Cr
• Fresh Issue:₹1,250.00 Cr
• Offer For Sale:₹4,180.00 Cr
• Price Band: Yet to be announced
• Issue Open Date: 25 October 2024
• Issue Close Date: 29 October 202
• Expected Listing Date: November 4, 2024
• Registrar: Link Intime India Private Ltd

Timeline

IPO Open Date:	October 25, 2024
IPO Close Date:	October 29, 2024
Basis of Allotment:	October 30, 2024
Refunds:	October 31, 2024
Credit to Demat Account:	October 31, 2024
IPO Listing Date:	November 4, 2024

About Company

Afcons Infrastructure Limited is a leading construction and engineering company in India. The company offers a wide range of services, including civil construction, building construction, and infrastructure development.

Core Business:

• Construction and Engineering: Afcons Infrastructure provides comprehensive construction and engineering solutions for various projects, including residential, commercial, and infrastructure development.
• Infrastructure Development: The company specializes in developing infrastructure projects, such as roads, bridges, railways, and ports.

Market Position:

• Afcons Infrastructure has a strong presence in the Indian construction and engineering market.
• The company has a reputation for quality workmanship, timely delivery, and project management expertise.
• Afcons Infrastructure has a diverse project portfolio, including both public and private sector projects.

Future Outlook:

• The Indian construction and engineering sector is expected to grow, driven by urbanization, industrialization, and infrastructure development.
• Afcons Infrastructure aims to expand its operations, diversify its project portfolio, and explore new market opportunities.
• The company may also invest in new technologies to improve efficiency and productivity.

Here are some resources to learn more about company

• Read DRHP Here

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Objective

The primary objectives of the Afcons Infrastructure Limited IPO are:

1. Raising Capital: The company aims to raise ₹6,500 crores through the IPO, which will be used for:
   • Expansion: Funding the expansion of operations and the development of new projects.
   • Working Capital: Meeting the day-to-day operational expenses of the business.
   • General Corporate Purposes: Supporting other growth initiatives and strategic investments.
2. Brand Visibility: The IPO will increase the visibility of Afcons Infrastructure among investors and the general public, enhancing its brand recognition and credibility.
3. Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.

By achieving these objectives, Afcons Infrastructure Limited aims to strengthen its financial position, expand its business, and enhance its market presence.

POSITIVE

• Established Player: Afcons Infrastructure is a well-established construction and engineering company with a strong track record.
• Diverse Project Portfolio: The company has a diversified project portfolio, reducing dependence on any single sector.
• Market Presence: Afcons Infrastructure has a strong presence in the Indian construction and engineering market.
• Growth Potential: The Indian construction sector is expected to grow, providing opportunities for expansion.

NEGATIVE

• Economic Downturns: The construction industry can be sensitive to economic fluctuations, impacting demand for projects.
• Regulatory Changes: Changes in government policies or regulations related to construction can affect the industry.
• Competition: The construction and engineering market is competitive, with both domestic and international players.

Financial Review of Afcons Infrastructure IPO Limited

So,How Does Afcons Infrastructure IPO Fare in Terms of Financials ?

Period Ended	Assets	Revenue	PAT	Net Worth	Total Borrowing
30 Sep 2023	16,178.71	6,655.35	195.13	3,332.71	2,843.92
31 Mar 2023	4,301.25	12,844.09	410.86	3,155.06	1,562.82
31 Mar 2022	12,973.77	11,269.55	357.61	2,691.03	1,555.21
31 Mar 2021	12,489.94	9,521.12	169.91	2,369.47	1,588.59

Financial Highlights

• Revenue Growth: The company has consistently increased its revenue over the past three years, indicating strong growth and market penetration.
• Profitability: Profit after tax (PAT) has also grown steadily, suggesting improved operational efficiency and cost management.
• Asset Growth: The company has invested in assets, as evidenced by the increase in total assets over the three years.
• Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
• Debt: Total borrowing has increased, but it remains at a manageable level.

Afcons Infrastructure Limited IPO Valuation :

KPI	Values
ROE	10.55%
ROCE	14.89%
Debt/Equity	0.91
RoNW	2.50%
P/BV	4.31
PAT Margin (%)	2.85

SWOT Analysis:Afcons Infrastructure Limited IPO

Strengths

• Established Player: Afcons Infrastructure is a well-established construction and engineering company with a strong track record.
• Diverse Project Portfolio: The company has a diversified project portfolio, reducing dependence on any single sector.
• Market Presence: Afcons Infrastructure has a strong presence in the Indian construction and engineering market.
• Experienced Workforce: The company likely has a skilled and experienced workforce.

Weaknesses

• Economic Downturns: The construction industry can be sensitive to economic fluctuations.
• Regulatory Changes: Changes in government policies or regulations related to construction can affect the industry.
• Competition: The construction and engineering market is competitive, with both domestic and international players.

Opportunities

• Growing Construction Market: The Indian construction sector is expected to grow, driven by urbanization and infrastructure development.
• Diversification: Exploring new market segments or geographic areas for expansion.
• Technology Adoption: Leveraging technology for improved project management, efficiency, and sustainability.

Threats

• Economic Slowdowns: A slowdown in the economy can impact demand for construction projects.
• Rising Material Costs: Increases in the cost of raw materials and labor can affect profitability.
• Regulatory Challenges: Stricter regulations or compliance requirements can increase operational costs.

COMPETITIVE ANALYSIS: MARKET PEERS

Key Competitors

• Larsen & Toubro Limited (L&T): One of the largest engineering and construction conglomerates in India.
• Tata Projects Limited: A subsidiary of the Tata Group, offering a wide range of construction and engineering services.
• Shapoorji Pallonji Group: A diversified business group with a strong presence in construction, real estate, and power generation.
• NCC Limited: A leading construction company specializing in infrastructure projects.
• GMR Infrastructure Limited: A diversified infrastructure company with interests in construction, energy, and airports.

Afcons Infrastructure IPO GMP

• Grey market premium as on 23-10-2024 = ₹ 52 / Share

Disclaimer:

• IPO Grey Market Premium (Afcons Infrastructure IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Afcons Infrastructure IPO

🔴 Live Subscription Status 🔴

DD/MM/YYYY 10:00 AM

	NO OF SHARES OFFERED	Day 1
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Employees
Total

FINAL TAKEAWAY

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