Shapoorji Pallonji Group’s flagship infrastructure firm Afcons Infrastructure Limited (AIL) has filed a draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO) route. The engineering and construction company, which competes with Larsen & Toubro, KEC International, Kalpataru Project International, and Dilip Buildcon, looks to raise ₹7,000 crore by public listing of its shares on the domestic stock exchange, which is touted to be the largest IPO in a decade.

The IPO is a mix of fresh issue of shares up to ₹1,250 crore and an offer for sale (OFS) of up to ₹5,750 crore by Goswami Infratech Private Limited. The offer includes a reservation for subscriptions by eligible employees.

As per the DRHP, the infrastructure company may consider undertaking a further issue of equity shares through a preferential issue or any other method for a cash consideration aggregating up to ₹250 crore as a "pre-IPO placement.". If such placement is completed, the fresh issue size will be reduced, the document noted.

The offer document showed that the Mumbai-based company has reserved half of the issue for qualified institutional buyers, up to 15% for non-institutional bidders, and up to 35% for retail individual bidders.

Afcons Infrastructure has a proven track record of successfully delivering a wide range of complex and challenging engineering, procurement, and construction (EPC) projects both domestically and internationally. According to the Fitch report, Afcons is recognised as one of India’s leading international infrastructure firms, as per the 2023 rankings by Engineering News-Record (ENR) based on international revenue for the financial year 2023.

Shapoorji Pallonji Group IPO

Shapoorji Pallonji Group’s Afcons Infra files DRHP for ₹7,000 cr IPO