Afcons Infrastructure Ltd (AIL), the infrastructure, engineering and construction company of the Shapoorji Pallonji group said it had received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), for its ₹7,000 crore initial public offering (IPO).

 The IPO, with a face value of ₹10 per equity share, would be mix of fresh issue of shares of ₹1,250 crore and an offer for sale of up to ₹5,750 crore by Goswami Infratech Pvt. Ltd. 

Proceeds from the fresh issue to the extent of ₹150 crore will be used 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; and general corporate purposes.

Afcons operates across five major infrastructure business verticals, which include Marine and Industrial, encompassing projects such as ports, harbours, dry docks, LNG tanks, and material handling systems; Surface transport, including highways, interchanges, mining infrastructure, and railways; Urban infrastructure, covering metro works, bridges, flyovers, and elevated corridors; Hydro and Underground, comprising dams, tunnels, and water-related projects and Oil and Gas, involving offshore and onshore projects in the oil and gas sector, the firm said.

Afcons’ restated consolidated revenue from operations during the FY23 rose 14.69% to ₹12,637.38 crore from ₹11,018.97 crore in the previous year. 

Profit after tax grew 14.89% from ₹357.60 crore in FY22 to ₹410.86 crore the next year.