Shares of newly-listed Afcons Infrastructure rallied 8% in early trade on Monday after the company won an order worth ₹1,007 crore from Madhya Pradesh Metro Rail Co. Ltd. The order pertains to construction of a new package for Bhopal Metro Phase 1 project’s 12.915 km Blue Line (Line-2) which will connect Bhadbhada Chauraha – Ratnagiri Tiraha via 13 elevated stations.

The Shapoorji Pallonji group company was declared as the lowest bidder for the construction package BH-05 of Bhopal Metro Rail Project on November 4, 2024, while the order was formally awarded to the company on December 14.

“In continuation to our announcement dated November 4, 2024, intimating you of the Company being declared the Lowest Bidder (L1) for the construction Package BH-05 of Bhopal Metro Rail Project and in compliance with Regulation 30 of SEBI…, we hereby inform you that the Company has today received Letter of Acceptance (LOA) from Madhya Pradesh Metro Rail Co. Ltd formally confirming our selection and the award of the said Project to the Company,” it said in a regulatory filing.

The timeline for completion of the project is 36 months. The project covers design and construction of 13 elevated metro stations which will connect Bhadbhada Chauraha to Ratnagiri Tiraha Elevated (excluding an Passenger interchange Metro Rail Station), between chainage and access to Depot between Chainages and for Blue Line.

Last week, Afcons-Hindustan JV (a joint venture between the company and Hindustan Project) secured water supply project worth ₹503.85 crore from the government of Rajasthan. The project involves water supply to 353 villages of Dungarpur district of the state under jal jeevan mission with O&M for 10 years after defect liability period of 1 year.

Earlier this month, the engineering and construction major completed longest tunnelling drive for DMRC in Delhi Metro phase-4. The package is part of the Aerocity to Tughlakabad Corridor (Line-10) of phase-IV of the Delhi Metro, with a total route length of 23.62 km. The package includes three stations, 11.26 km of tunnelling, a 223-meter ramp, and a 119-meter cut-and-cover section. The three underground stations are Maa Anandmayee Marg Station, Tughlakabad Railway Colony Station, and Tughlakabad Station.

Cheering the news, shares of Afcons Infrastructure rallied 8% to hit a new all-time high of ₹564.40 on the BSE today. At the time of reporting, the stock was trading 3.25% higher at ₹540, with a market capitalisation of ₹19,847 crore.

The midcap stock trade nearly 22% higher than its initial public offering (IPO) price of ₹463 per share. The stock made its debut on the stock exchange on November 4 after raising ₹5,430 crore via IPO route, which was subscribed 2.77 times. Ahead of opening of the IPO, the Mumbai-based company raised ₹1,621 crore from anchor investors.

The IPO was a combination of fresh issuance of equity shares worth ₹1,250 crore and an offer for sale (OFS) of shares worth ₹4,180 crore by its promoter Goswami Infratech. Out of ₹1,250 crore raised from fresh equities, Afcons intends to use ₹150 crore for capital expenditure towards purchase of construction equipment; ₹350 crore for funding long term working capital requirements; ₹500 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the company.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)