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Afcons Infrastructure, a Shapoorji Pallonji Group unit may raise ₹7,000 crore via IPO: Exclusive
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Afcons is likely to raise ₹1,200 crore via fresh issue of equity, the Shapoorji Pallonji Group may fetch ₹5,750 crore by selling some of its stake in the IPO through an offer for sale.
Afcons Infrastructure, a Shapoorji Pallonji Group company is likely to raise ₹7,000 crore via an upcoming Initial Public Offer (IPO), sources with knowledge of the matter told CNBC-TV18.
The Shapoorji Pallonji Group has filed the Draft Red Herring Prospectus for the Afcons Infra IPO.
Afcons’ ₹7,000 crore IPO is likely to be a combination of a fresh issue and an offer for sale, according to the sources. While Afcons is likely to raise ₹1,200 crore via fresh issue of equity, the Shapoorji Pallonji Group may fetch ₹5,750 crore by selling some of its stake in the IPO through an offer for sale.
Based on available data, the Shapoorji Pallonji Group holds a 99.48% stake in Afcons Infrastructure.
The IPO, according to the sources, is likely to value Afcons Infra between ₹19,000 crore to ₹20,000 crore.
The Shapoorji Pallonji Group is currently on a deleveraging spree, having recently sold its stake in Gopalpur Ports to Adani Ports and SEZ for an enterprise value in excess of ₹3,000 crore.
This was the second port divestment by the infrastructure conglomerate, having earlier sold its Dharamtar Port to JSW Infrastructure for an enterprise value of ₹710 crore.
“These divestments are key milestones in our roadmap to reduce Group debt and set the stage for growth, taking advantage of the macro trends for demand in our core businesses, both in India and overseas,” a statement from the group had said post the Gopalpur Port sale.
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