Today i.e. 28th October is the second day of the IPO of Afcons Infrastructure Limited, a company working in transport, construction, oil and gas sectors. Waari Energies' IPO was subscribed by 10% on the first day. The issue was subscribed 14% in the retail category, 1% in the Qualified Institutional Buyers (QIB) and 11% in the Non-Institutional Investors (NII) category.
You can bid for this issue till 29th October. The company's shares will be listed on BSE and NSE on November 4. The company wants to raise Rs 5,430 crore through this issue. 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 money in it, then 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. Retail investors can bid for a minimum of one lot i.e. 32 shares.
If you apply for 1 lot at 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 maximum 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% share is reserved for retail investors and the remaining 15% share is reserved for non-institutional investors (NII).
Afcon will spend Rs 600 crore for corporate purposes Of the funds raised from the fresh issue, up to Rs 80 crore will be used to purchase construction equipment, Rs 320 crore to fund working capital requirements and prepayment or scheduled repayment of a part of certain outstanding borrowings taken by the company and Rs 600 crore for general corporate purposes. Crore rupees will be spent.
Afcon operates five major infrastructure businesses:
- Marine and Industrial- This includes projects like Ports, Harbours, 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- This includes dams, tunnels, and water related projects.
- Oil and Gas- This includes offshore and onshore projects in the oil and gas sector.
AIL's operating revenue in FY 2023 Rs 13,267.50 crore AIL's operating revenue is expected to increase from Rs 12,637.38 crore in FY 2023 to Rs 13,267.50 crore in FY 2024. During this period, the company's profit after tax stood at 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 of financial year 2024, the company is on top in terms of Return on Equity (ROE) and Profit After Tax (PAT).
The company's operating revenue for the quarter ending June 30, 2024 was Rs 3,154.36 crore and profit after tax was Rs 91.59 crore. According to data till June 30, 2024, Afcon Infrastructure's order book stands at 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 issuing new shares. For this the company brings IPO.
Graphics Source: VaskarAssets
