Afcons Infrastructure IPO: Afcons Infrastructure Limited, a leading company in the country's infrastructure sector, which specializes in building bridges, is coming up with its IPO before Diwali. Afcons Infra is a company of Shapoorji Pallonji Group, the largest shareholder of Tata Group. This IPO of Rs 5,430 crore of the company can change the fate of good investors investing in the share market.
Shapoorji Pallonji Group holds 18 percent stake in Tata Sons, the holding company of Tata Group. In this way, Shapoorji Pallonji Group is in a way the biggest partner in Tata Group. When Ratan Tata left the post of Chairman of Tata Sons, Cyrus Mistry of Shapoorji Pallonji Group was made the head of Tata Sons. A few years ago, Cyrus Mistry died in a car accident. Whereas Ratan Tata recently died at the age of 86.
The IPO of infrastructure engineering and construction company Afcons Infrastructure Limited (AIL) will open on October 25. According to the draft papers submitted by the company regarding this, the company will raise a total of Rs 5,430 crore from the IPO. The company's IPO will close on October 29. Whereas anchor investors will have a chance to bid on October 24, a day before the opening of the IPO.
The company has not yet decided the share price band for this IPO. Rather the company will announce it next week. In this IPO, the company will offer new shares worth Rs 1,250 crore. Whereas shares worth Rs 4,180 crore will be put up for offer for sale (OFS).
There is a buzz in the market regarding the IPO of Afcons Infra because at present the stake of its promoters and promoters group in the company is 99%. Higher stake of promoters is always considered a good reason for the growth of a company. The company will use Rs 80 crore of the total amount received from the IPO to purchase construction tools. Whereas Rs 320 crore will be used for long term working capital and Rs 600 crore will be used to repay the loan. The remaining amount will be used to meet other corporate expenses.
