The initial public offering (IPO) of Afcons Infrastructure Limited, a company operating in the transport, construction, oil and gas sectors, has opened today. Investors can bid for the issue till October 29. The company's shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 4.
The company through this issue raised Rs. 5,430 crores sought to be raised. For this company Rs. Issuing 2,69,97,840 new shares worth 1,250 crores. Whereas, the existing investors of the company through Offer for Sale i.e. OFS Rs. Selling 9,02,80,778 shares worth Rs 4,180 crore.
If you are also thinking of investing money in it, we are telling you how much you can invest in it.
What is the minimum and maximum amount that can be invested? Afcons Infrastructure Limited has fixed the price band of this issue at Rs. 440 to Rs. 463 per share has been fixed. Retail investors can bid for a minimum of one lot i.e. 32 shares.
If you apply for 1 lot as per IPO upper price band of Rs 463, you 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 have to invest Rs 1,92,608 as per the upper price band.
35% of the issue is reserved for retail investors The company has reserved 50% of the issue for Qualified Institutional Buyers (QIB). Apart from this, around 35% shares are reserved for retail investors and the remaining 15% shares are reserved for non-institutional investors (NIIs).
For Afcon corporate purposes Rs. 600 crore will be spent Out of the funds raised from the fresh issue, Rs. 80 crore to be used to purchase construction equipment, Rs. 320 crore will be used to fund working capital requirements and prepayment or scheduled repayment of part of certain outstanding borrowings taken by the company and Rs. 600 crore will be done. Crores of rupees will be spent for general corporate purposes.
Afcon operates five core infrastructure businesses:
- Marine and Industrial – These include projects such as ports, harbors, dry docks, LNG tanks and material handling systems.
- Surface Transport – This includes highways, interchanges, mining infrastructure and railways.
- Urban Infrastructure- This includes metro works, bridges, flyovers and elevated corridors.
- Hydro and Underground Projects – These include dams, tunnels and water related projects.
- Oil and Gas – This includes offshore and onshore projects in the oil and gas sector.
AIL's operating income in FY 2023 will be Rs. 13,267.50 crore AIL's operating income in FY2023 is Rs. 12,637.38 crore in FY 2024 to Rs. 13,267.50 crore is expected. During this period, the company's profit after tax was Rs. 449.74 crore, which in FY 2023 will be Rs. 410.86 crores.
According to a Fitch report, among the country's major infrastructure companies, Afcon tops in terms of Return on Capital Employed (ROCE) i.e. return against costs and EBITDA margin. According to FY 2024 data, the company is at the top in terms of Return on Equity (ROE) and Profit after Tax (PAT).
The company's operating income for the quarter ended June 30, 2024 was Rs. 3,154.36 crore and profit after tax was Rs. 91.59 crores. According to data till June 30, 2024, Afcon Infrastructure's order book stands at Rs 31,747.43 crore.
What is an IPO? when When a company issues its shares to the general public for the first time, it is called an initial public offering or IPO. A company needs money to grow its business. In such a situation, the company raises money by selling some shares to the public or by issuing new shares instead of borrowing from the market. For this the company brings IPO.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
