About the Company:
AFCONS Infrastructure Ltd is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group, a diversified Indian conglomerate, and have a legacy of over six decades.
Company has a strong track record of executing numerous complex, challenging and unique EPC projects both within India and internationally.
During the period comprising the last ten financial years and the six month period , Company has successfully completed 76 projects across 15 countries with a total historic executed contract value of Rs.522.20 billion.
Company has 67 active projects across 13 countries, aggregating to an order book of Rs.348.88 billion. Among large infrastructure construction companies in India, Company had the highest ROCE and ROE margins for the Financial Year 2023.
Over the years, Company has expanded our presence globally and in particular across Asia, Africa and the Middle East. Company has undertaken many complex, challenging, unique and ‘first of its kind’ infrastructure projects in India and the rest of the world.
Company’s Projects cover Five Major Infrastructure Business Verticals:
• Marine and Industrial, covering ports and harbour jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks and material handling systems.
• Surface Transport, covering highways and roads, interchanges, mining related infrastructure and railways.
• Urban Infrastructure, covering elevated and underground metro works, bridges, flyovers and elevated corridors.
• Hydro and Underground, covering dams and barrages, tunnels (including large road tunnels) and underground works, water and irrigation.
• Oil and Gas, covering both offshore and onshore oil and gas projects.
Company’s Revenues from Various Business Verticals: (in Millions)
Major Projects Completed by the Company:
Chenab Bridge: The tallest single-arch railway bridge in the world. This is one of the toughest bridge works undertaken in India due to geological and engineering considerations.
Atal Tunnel: The world’s longest highway tunnel located at 3,000 metres above sea level. It has reduced the distance between Kulu and Lahaul by 48 km and travel time by four hours and provides all weather connectivity.
MG Setu Bridge: This project involved the replacing the existing concrete superstructure with a new steel superstructure. This was the first time that such work was executed in India
Annaram Barrage: Part of Kaleshwaram Lift Irrigation Project, the world’s largest multi-stage lift irrigation project.
Fourth Container Terminal, JNPT, Mumbai: The Jawaharlal Nehru Port Trust is India’s largest container port. We constructed one 1000 m x 61 m suspended deck wharf (comprising five modules each of 200 m length) and five approach trestles (each of 97 m length). This terminal has the deepest berths at the Jawaharlal Nehru Port and a quay length of 1000 m.
Kolkata Metro: Design and construction of tunnels below the Hooghly river forming part of the Kolkata Metro, which includes India’s first underwater metro tunnel and India’s deepest metro station, the Howrah metro station
Mumbai – Ahmedabad High Speed Railway (MAHSR-C-2): Construction of a 21 km long tunnel including India’s first undersea rail tunnel (seven km long) for the Mumbai – Ahmedabad high speed rail corridor.
Company’s Revenue from Various Types of Clients: (in Millions)
Company’s Key Performance Indicators:
Company’s Order Book from Various Business Verticals:
Management Team:
- Mr. Shapoorji Pallonji Mistry (Designation: Chairman and Non-Executive Director)
- Mr. Paramasivan Srinivasan (Designation: Managing Director)
Objectives of the Issue:
Offer For Sale: (Rs. 4180 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.1250 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fund Utilization:
| Particulars | Amount (Rs. in Lakhs/Crores) |
|---|---|
| Capital expenditure towards purchase of construction equipments | 80 cr |
| Funding long term working capital requirements | 320 cr |
| Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by our Company |
600 cr |
Positives for the Company:
Company has a strategic equipment base comprising a wide range of heavy machinery.
- Company maintains a strategic equipment base comprising a wide range of heavy machinery and specialized equipment.
- As of September 30, 2023, Company’s equipment base included 10 marine barges, 133 cranes, 16 tunnel boring machines, eight large capacity jack ups, and 20 piling rigs
- This equipment base, along with the ability to source other high-tech equipment and our in-house capabilities in managing specialized equipment, has been instrumental in winning several complex projects, such as the Atal tunnel, the High Speed Railway Project, the Delhi – Meerut regional rapid transit system, Delhi Metro Phase IV projects, and the second liquid cargo berth at Dahej, Gujarat for Gujarat Chemical Port Ltd.
Company Selectively Pursue Large Value and Complex Projects.
- Company is focused on pursuing large value and complex projects that fit our project selection process and risk management framework. Company typically do not pursue projects in which we anticipate a significant number of competing bids; since bidders tend to compete primarily based on their pricing for such projects.
- Further, Company targets technically complex projects in specialized areas since these projects offer better profit margins compared to less complex endeavors as there are fewer competitors. Only bidders that match specified eligibility criteria are permitted to bid for such projects.
- Such eligibility criteria, among other things, require previous experience in executing similar projects. In this regard, company significantly benefits from our experience of having executed multiple technically challenging projects across our business verticals.
Strong Parentage of the Shapoorji Pallonji Group.
- Company benefits from the strong parentage of the Shapoorji Pallonji Group. The Shapoorji Pallonji Group has a legacy of over 150 years, and its strong reputation, global presence and extensive industry experience assists us in the growth of our business and operations.
- Additionally, company gains access to the Shapoorji Pallonji Group’s network enabling strategic collaborations, business development opportunities and knowledge sharing. Further, company is strategically guided by our board of directors and the leadership of our management team.
Strong Track Record of Timely Execution of Large-Scale, Complex and High-Value Projects.
- Company is one of the leading infrastructure construction companies involved in the execution of large and complex projects both in India and overseas .
- Company focusses on large, complex, and high-value projects and have a strong track record in efficient project management, execution and on-time delivery of projects across verticals and geographies, with a substantial majority of our projects being executed ahead of or on schedule.
- Company has undertaken many complex, challenging, unique and ‘first of its kind’ infrastructure projects in India and the rest of the world.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | FY 24 | 30th June 24 |
|---|---|---|---|---|---|
| Revenue | 9521.1 | 11,269.5 | 12,844.0 | 13646.8 | 3213.4 |
| Net Profit | 169.9 | 357.6 | 410.8 | 449.0 | 87.3 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Afcons Infrastructure Ltd | 10 | 13.20 | 35.07 | 12.58% | 104.92 |
| Larsen & Toubro Ltd | 2 | 74.45 | 48.49 | 11.80 % | 631.34 |
| KEC International Ltd | 2 | 6.85 | 97.21 | 4.80 % | 142.78 |
| Kalpataru Project International Ltd | 2 | 29.06 | 36.72 | 9.58 % | 283.24 |
| Dilip Buildcon Ltd | 10 | (-0.10) | (-4,162.00) | 0.02 % | 270.45 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th October 2024 |
| Issue Closes on | 29th October 2024 |
| Issue Price | Rs.440-463 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 32 Shares |
| Minimum Investment | Rs.14,816 |
| Issue Constitutes | 31.89% |
| Issue Size | Rs.5430 cr ($646 million) |
| Market Cap | Rs.17,026 cr ($2.2 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,69,97,840 (Rs.1250 cr) |
| Equity Shares Offered (OFS) | 9,02,80,777 (Rs.4180 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 11,72,78,617 (Rs.5430 cr) |
| Equity Shares Prior to the Issue | 34,07,38,269 |
| Equity Shares after the Issue | 36,77,36,109 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 13.20 | 35.07 | 12.58% | 104.92 | 0.91 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| AFCONS Infrastructure Ltd is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group, a diversified Indian conglomerate with a legacy of over six decades. The company has built a strong reputation for executing complex and challenging EPC (Engineering, Procurement, and Construction) projects both in India and internationally.
Over the last decade , AFCONS has successfully completed 76 projects across 15 countries, with a total contract value of ₹522.20 billion. This demonstrates their consistent ability to handle large-scale projects across various geographies, including Asia, Africa, and the Middle East. The company specializes in undertaking unique and first-of-its-kind infrastructure projects, which showcase its engineering expertise and problem-solving capabilities. AFCONS’ success is backed by its strategic use of heavy machinery and specialized equipment, enabling the execution of challenging projects. Its focus on large-value and complex contracts has strengthened its position in the industry. As part of the Shapoorji Pallonji Group, AFCONS benefits from the strong backing and resources of its parent company. The company’s proven track record of timely completion of high-value projects makes it an attractive option for long-term investors considering its upcoming IPO. |
Important Dates:
| Finalization of Basis of Allotment | On or Before 30th October 2024 |
| Initiation of Refunds | On or Before 31st October 2024 |
| Credit of Equity Shares: | On or Before 31st October 2024 |
| Listing Date: | On or Before 4th November 2024 |
| Company Contact Info: |
|---|
| AFCONS Infrastructure Ltd Afcons House, 16 Shah Industrial Estate, Veera Desai Road, Andheri (West), Mumbai-400053, Maharashtra, 400053, India Telephone: 022-67191214, Email: gaurang@afcons.com Website: www.afcons.com |
| Registrar to the Issue: |
|---|
| LinkinTime Ltd C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli (West) Mumbai 400 083 Maharashtra, India Telephone: +91 810 811 4949 E-mail: afconsinfrastructure.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
