Vikrant Shekhawat : Oct 20, 2024, 06:00 AM
Afcons Infrastructure IPO: Afcons Infrastructure Limited, a leader in the country's infrastructure sector, which specializes in bridge construction, is going to launch its much-awaited IPO (Initial Public Offering) soon. This IPO can prove to be a great opportunity for investors, who can get a golden opportunity to increase their investment capacity through this public issue of Rs 5,430 crore. Afcons Infra is a company of Shapoorji Pallonji Group, which is one of the largest shareholders of Tata Group.Afcons has a deep relationship with Tata GroupShapoorji Pallonji Group, of which Afcons Infra is a part, holds an 18% stake in Tata Sons, the holding company of Tata Group. This group is considered one of the most important partners of the Tata Group. Cyrus Mistry, who belonged to the Shapoorji Pallonji family, was chosen as the chairman of Tata Sons after Ratan Tata. However, he died untimely in a road accident a few years ago. Ratan Tata also passed away recently at the age of 86, marking the end of an era in the industry.What to know about Afcons IPO?This IPO of Afcons Infrastructure Limited (AIL) will open on October 25 and close on October 29. Anchor investors will have the opportunity to invest in this IPO from October 24 itself. The company plans to raise Rs 5,430 crore from this IPO. Its main highlight is that new shares worth Rs 1,250 crore will be issued and shares worth Rs 4,180 crore will be offered under the Offer for Sale (OFS).However, the company has not yet disclosed the share price band, but it will be announced next week. A large part of the funds raised through the Afcons IPO will be spent on the company's working capital, repaying debt and purchasing construction equipment.Promoters' Majority Stake: A Strong SignThe most important aspect of Afcons Infrastructure is that currently its promoters and promoter group hold 99% stake in the company. This is a positive sign from the investors' point of view, as a higher promoter stake is considered important for the company's growth and stability. The company expects this stake to decrease slightly after the IPO, but will still open new avenues of growth for the company.Use of IPO ProceedsAfcons plans to use the proceeds from the IPO for various purposes. The company intends to invest Rs 80 crore in purchasing new construction tools, while Rs 320 crore will be used for long-term working capital. Additionally, Rs 600 crore will be used by the company to repay its debt. The rest of the amount will be used to meet other corporate needs.Golden opportunity for investorsThis IPO of Afcons Infrastructure can be a golden opportunity for those investors who are willing to increase their capital by investing in the infrastructure sector. Afcons's strong market position, deep stake of promoters and solid action plan of the company make it an attractive investment option. If you are looking for a reliable investment for the long term, then Afcons IPO can definitely prove to be a great opportunity for you.This IPO, which will be launched before Diwali, is going to create a stir in the market, and the company's stable position in the infrastructure sector makes it even more special.