Afcons Infrastructure Limited IPO

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Afcons infrastructure limited is the leading infrastructure, engineering, and construction arm of the Shapoorji Pallonji group, a diversified Indian conglomerate with a rich legacy spanning over six decades. The company has built a strong reputation in executing complex, challenging, and one-of-a-kind engineering, procurement, and construction (EPC) projects, both within India and internationally. They are ranked among India’s largest international infrastructure companies as per the 2023 ENR (Engineering News-Record, US) Top International Contractors rankings, based on international revenue for FY 2023.

Legacy and Proven Track Record

Over the past eleven financial years, along with the three-month period ending June 30, 2024, they have successfully completed 79 projects across 17 countries with a total executed contract value of ₹563.05 billion. As of June 30, 2024, they have 65 active projects across 12 countries, with an order book amounting to ₹317.47 billion. Their diversified global presence includes regions such as Asia, Africa, and the Middle East, where they have delivered multiple groundbreaking and pioneering projects.

Strategic Global Expansion

Their company has made significant strides in expanding its footprint across Asia, Africa, and the Middle East. This global diversification has enabled them to execute some of the most complex and challenging infrastructure projects in these regions, ranging from large-scale industrial developments to critical public infrastructure. They pride themselves on completing ‘first of its kind’ projects that set new benchmarks in the construction and engineering sectors, both in India and internationally.

Business Verticals

They operate through five major infrastructure business verticals, each addressing a specific aspect of the infrastructure and engineering sectors. Their diversified approach allows them to maintain a broad portfolio of projects across various sectors, ensuring a balanced and stable growth trajectory.

i. Marine and Industrial                            ii. Surface Transport                     iii. Urban Infrastructure
iv. Hydro and Underground                     v. Oil and Gas

Conclusion

Their diversified business model, consistent financial performance, and a global track record of delivering complex projects position them as one of the leading infrastructure companies in India and the world. With an ever-growing portfolio and a strong order book, they remain committed to driving innovation and excellence in the infrastructure and engineering sectors while expanding their global footprint.

Objects of the Afcons Infrastructure Limited IPO:

The Company proposes to utilise the Net Proceeds towards funding the following objects i. Capital expenditure towards purchase of construction equipment. ii. Funding long term working capital requirements. iii. Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the Company. iv. General corporate purpose. Total number of shares issue:- i. Fresh issue is 26,997,840 shares, ii. Offer for sale is 90,280,778 shares.

Afcons Infrastructure Limited IPO Details:

Open Date: Oct 25 2024
Close Date: Oct 29 2024
Total Shares: 117,278,618
Face Value: ₹ 10 Per Equity Share
Issue Size: 5,430.00 Cr.
Lot Size: 32 Shares
Issue Price: ₹ 440 - 463 Per Equity Share
Listing At: NSE,BSE
Listing Date: Nov 04 2024

Promoters And Management:

Shapoorji Pallonji Mistry is the Non-Executive Director and Chairman of the company. With a bachelor's degree in business administration and economics from Richmond College, London, he has been the Non-Executive Chairman of Shapoorji Pallonji and Company Private Limited since March 2014. He brings 37 years of experience across construction, real estate, infrastructure, water, oil & gas, and renewable energy sectors. He also serves on the boards of several companies, including Shapoorji Pallonji and Company Private Limited and Sterling Investment Corporation Private Limited. Subramanian Krishnamurthy is the Executive Vice Chairman (Whole-time Director) of the company. He holds a bachelor's degree in mechanical engineering from the University of Madras and a postgraduate diploma in industrial engineering from NITIE. He has been honored with a D.Litt. from KIIT, Odisha, and received the Bharat Shiromani Award in 2004. He also earned the Distinguished Alumnus Award from NIT, Tiruchirappalli. With over 40 years of experience in the construction and engineering sector, he has been with the company since 2002, and was previously associated with Hindustan Construction Company Limited. Paramasivan Srinivasan is the Managing Director of the company. He holds a bachelor's degree in commerce from Madurai University and is a fellow member of the Institute of Cost Accountants of India and the Institute of Company Secretaries of India. He is also a Stanford Certified Project Manager with over 22 years of experience in finance, secretarial, and legal matters. Associated with the company since 2002, he previously worked with State Bank of Travancore and Fouress Engineering. He also serves on the board of Afcons Corrosion Protection and has been involved with industry committees like FICCI and the Bombay Chamber of Commerce.

Financials of Afcons Infrastructure Limited IPO:

Particulars (in cr) FY24 Fy23 Fy22
Revenue 13646 12844 11269
Cost of material consumed 4012 3851 3176
Cost of construction 5293 5200 4939
Employee benefits expense 1383 1298 1084
Other expenses 1212 976 881
EBITDA 1746 1519 1189
Finance Cost 577 446 424
D&A 494 471 355
PBT 672 600 406
Tax 222 188 48
PAT 450 412 357

Comparison With Peers:

Particulars in (cr) Sales 3Y Sales Growth EBITDA OPM(%) PAT 3Y PAT Growth NPM(%) EV EV/EBITDA P/E
Afcon Infra 13646 10.40% 1583 11.60% 449 12.15% 3.29% 18000 11.37 37.86
L&T 221000 18.85% 29865 13.51% 15540 21.79% 7.03% 594559 19.9 37
Dilip Buildcon 12000 12.01% 1421 11.84% 201 NA 1.68% 13450 9.47 42
KEC Intl. 19900 20.38% 1353 6.80% 347 2.23% 1.74% 29000 21.4 66

Recommendation on Afcons Infrastructure Limited IPO:

Registrar of Afcons Infrastructure Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Afcons Infrastructure Limited Afcons House, 16 Shah Industrial Estate, Veera Desai Road ndheri (West), Mumbai,-400053 Phone: 022 67191214 Email: gaurang@afcons.com Website: https://www.afcons.com/en

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