Today, i.e. 28 October, is the second day of the IPO of Afcons Infrastructure Limited, a company working in the transport, construction, oil and gas sector. On the first day, Wari Energies’ IPO was subscribed by a total of 10%. The issue was subscribed 14% in the retail category, 1% in qualified institutional buyers (QIB) and 11% in the non-institutional investors (NII) category. You can bid for this issue till 29 October. The company’s shares will be listed on BSE and NSE on 4 November. Through this issue, the company wants to raise Rs 5,430 crore. For this, the company is issuing 2,69,97,840 fresh shares worth Rs 1,250 crore. Whereas, the existing investors of the company are selling 9,02,80,778 shares worth Rs 4,180 crore through Offer for Sale i.e. OFS. If you are also planning to invest in it, then we are telling you how much you can invest in it. How much minimum and maximum money can you invest?
Afcons Infrastructure Limited has fixed the price band of this issue from Rs 440 to Rs 463 per share. Retail investors can bid for a minimum of one lot i.e. 32 shares. If you apply for 1 lot as per the upper price band of IPO of Rs 463, then you will have to invest Rs 14,816 for it. At the same time, retail investors can apply for a maximum of 13 lots i.e. 416 shares. For this, investors will have to invest Rs 1,92,608 as per the upper price band. 35% of the issue reserved for retail investors
The company has reserved 50% of the issue for Qualified Institutional Buyers (QIB). Apart from this, about 35% is reserved for retail investors and the remaining 15% is reserved for non-institutional investors (NII). Afcon will spend Rs 600 crore for corporate purposes
Up to Rs 80 crore of the funds raised from the fresh issue will be used to purchase construction equipment, Rs 320 crore for funding working capital requirements and Rs 600 crore for prepayment or scheduled repayment of a part of certain outstanding borrowings taken by the company and general corporate purposes. Afcon operates five major infrastructure businesses: AIL’s operating revenue in FY 2023 was Rs 13,267.50 crore
AIL’s operating revenue increased from Rs 12,637.38 crore in FY 2023 to Rs 13,267.50 crore in 2024. During this period, the company’s profit after tax was Rs 449.74 crore, which was Rs 410.86 crore in FY 2023. According to the Fitch report, among the big infrastructure companies of the country, Afcon is at the top in terms of Return on Capital Employed (ROCE) i.e. return against cost and EBITDA margin. According to the data for FY 2024, the company is at the top in terms of Return on Equity (ROE) and Profit After Tax (PAT). In the quarter ended June 30, 2024, the company’s operating revenue was Rs 3,154.36 crore and profit after tax was Rs 91.59 crore. According to the data till June 30, 2024, the order book of Afcon Infrastructure is Rs 31,747.43 crore. What is IPO?
When a company issues its shares to the general public for the first time, it is called Initial Public Offering i.e. IPO. The company needs money to expand its business. In such a situation, instead of taking loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.
