Currently, investors are making more money from IPOs than from shares. The listing of fundamentally strong companies is happening with a bang. Meanwhile, the IPO of a big company associated with Tata Sons is also going to come. Which company is it? What is the business model? How big is the IPO? Let us know the answers to all the questions.
Shapoorji Pallonji Group
Actually, Afcons Infrastructure Ltd, an infrastructure company of Shapoorji Pallonji Group, has got approval from SEBI to bring IPO. For this, the documents were submitted to SEBI by the company in March. Let us tell you that Shapoorji Pallonji (SP) Group of Mistry family has 18.37% stake in Tata Sons.
Size of IPO
This IPO can be of Rs 7,000 crore. The company will raise Rs 1,250 crore through fresh issue in IPO. Currently, the promoter and promoter group hold 99.48% stake in Afcons Infrastructure. Let us tell you that Goswami Infratech Private Limited is a company of the promoter group. At the same time, Goswami Infratech Private Limited will be seen trying to raise Rs 5,750 crore through Offer for Sale.
Company business model
Afcons works in various infrastructure sectors. The company works in the marine sector, various land transport sectors, urban infrastructure, underground infrastructure, hydro power plants, oil and gas related infrastructure.
order book of the company
Afcons Infrastructure’s order book has grown at a compounded interest rate of 7.6%. The company’s order book was Rs 26,248 crore in 2021, which increased to Rs 30,405 crore in 2023. The September 2023 order book was Rs 34,888 crore. ICICI Securities, DAM Capital Advisors, Jefferies, Nomura, Nuvama and SBI Capital are the lead managers for the book-running.
Use of funds
The company will use a large part of the money raised to repay the debt. The remaining money will be used for capital expenditure, working capital and general corporate purposes.
profit
The consolidated revenue of the company for the financial year 2022-23 increased by 14.69% to Rs 12,637 crore as compared to the previous year. In 2023, the net profit of the company increased by 14.89% to Rs 410 crore as compared to the previous year.
Earlier, Shapoorji Pallonji Group had launched the IPO of its company Sterling and Wilson Renewable Energy in the market. Sterling and Wilson, which entered the stock market in August 2019, was later bought by Reliance Industries. Currently, only two companies of Shapoorji Pallonji Group, Forbes & Co and Gokak Textiles, are listed on the stock market.