Top Reasons to Subscribe Afcons Infrastructure Limited IPO

Afcons Infrastructure Limited: An Overview Founded in 1959, Afcons Infrastructure Limited is a renowned infrastructure engineering and construction company under the Shapoorji Pallonji group, boasting a legacy spanning over six decades. The company has established a significant presence in the infrastructure sector with a diverse portfolio of complex projects worldwide.

Project Completion and Global Reach As of September 30, 2023, Afcons has successfully completed 76 projects across 15 countries, achieving a cumulative executed contract value of ?522.20 billion. With a global presence spanning Asia, Africa, and the Middle East, the company continues to expand its footprint across continents. Currently, Afcons is managing 67 active projects in 13 countries with an order book value of ?348.88 billion.

Core Business Verticals Afcons’ expertise spans five major infrastructure business verticals:

1. Marine and Industrial Projects: Covering ports, harbor jetties, dry docks, wet basins, breakwaters, outfall and intake structures, liquefied natural gas tanks, and material handling systems.
2. Surface Transport Projects: Encompassing highways, roads, interchanges, railways, and mining-related infrastructure.
3. Urban Infrastructure Projects: Including elevated and underground metro systems, bridges, flyovers, and elevated corridors.
4. Hydro and Underground Projects: Involving dams, barrages, tunnels (including large road tunnels), and various underground works, water, and irrigation projects.
5. Oil and Gas Projects: Providing comprehensive solutions for both offshore and onshore oil and gas developments.

Competitive Strengths Afcons’ competitive advantage is driven by a solid track record of timely delivery of large-scale, high-value, and complex projects. The company’s diversified order book, spanning various geographies, clients, and business segments, underpins its global reach and strong financial performance. Afcons also boasts long-standing relationships with its clients, maintained through consistent delivery and reliability.

Additionally, Afcons’ execution capabilities are bolstered by seamless collaboration among internal teams and JV partners, supported by a robust strategic equipment base. This synergy enables the company to handle the intricate demands of its projects effectively, maintaining a strong competitive edge in the global infrastructure landscape.

Key Factors

• Strong Track Record: Afcons has a history of successfully executing large-scale, high-value, and complex projects on time, enhancing its credibility and trust among clients and stakeholders.

• Diversified Order Book: The company maintains a balanced order book across multiple geographies, client types, and infrastructure segments, reducing dependency on any single market and allowing flexibility and resilience.

• Global Client Relationships: Afcons has built long standing relationships with clients worldwide, highlighting its consistent quality, reliability, and ability to adapt to varying client needs and standards.

• Robust Financial Performance: The company’s financial strength supports ongoing project execution, the acquisition of new projects, and long-term growth initiatives.

• Collaborative Execution Capabilities: With seamless teamwork among internal divisions, joint venture partners, and a strategic equipment base, Afcons effectively tackles the complexities of large infrastructure projects, driving efficient and high-quality results.

Key Details

IPO Date: 25 October 2024 to 29 October 2024?

Face Value: ?10 per share

Price Band: ?440 to ?463 per share

Lot Size: 32 Shares?

Total Issue Size: ?5,430 Cr

Conclusion

Afcons Infrastructure Limited, established in 1959, has emerged as a leading player in global infrastructure, covering diverse sectors such as marine, urban, transport, hydro, and oil & gas. With a presence in 15 countries and 76 completed projects, Afcons has demonstrated its capacity for executing complex, large-scale projects, building a reputation for quality and reliability.

As of September 30, 2023, Afcons holds a substantial order book of ?348.88 billion with 67 active projects in 13 countries, indicating its resilience and growth potential. Key strengths, such as collaborative execution capabilities, a diversified order book, strong client relationships, and timely project delivery, underscore Afcons’ competitive edge in the market. Financially, the company has shown consistent growth in revenue and profit, backed by prudent asset and borrowing management.

The upcoming IPO, scheduled for October 25-29, 2024, offers a strategic entry point for investors at a price band of ?440-?463 per share, with a total issue size of ?5,430 crore. Given its stable revenue, strong project pipeline, and growth outlook, Afcons Infrastructure is well-positioned for sustained expansion and long-term value creation for shareholders.