Afcons Infrastructure IPO Subscribed 36% on Day 2

New Delhi, Oct 28 (PTI) The initial public offering (IPO) of Shapoorji Pallonji Group's flagship infrastructure engineering and construction firm Afcons Infrastructure received 36 per cent subscription on the day two of the share sale on Monday.

The initial share sale received bids for 3,15,57,920 shares against 8,66,19,950 shares on offer, as per NSE data.

The portion for non-institutional investors fetched 72 per cent subscription while the category for retail individual investors (RIIs) got subscribed 36 per cent. The qualified institutional buyers (QIBs) part received 8 per cent subscription.

Afcons Infrastructure Ltd (AIL) on Thursday said it has mopped up Rs 1,621 crore from anchor investors.

The Rs 5,430-crore IPO will remain open till Tuesday. The price band has been fixed at Rs 440-463 per share.

The IPO is a combination of a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 4,180 crore by promoter Goswami Infratech Pvt Ltd.

Currently, promoter and promoter group entities own a 99 per cent stake in the Maharashtra-based Afcons Infrastructure.

The company will utilise Rs 80 crore from the fresh issue proceeds to buy construction equipment, Rs 320 crore for long-term working capital, Rs 600 crore to repay debt, and the rest for general corporate purposes.

Founded in 1865, Shapoorji Pallonji Group (SP Group) is a diversified institution and has a leading presence in engineering & construction, infrastructure, real estate, water, energy and financial services sectors across the globe.

ICICI Securities Ltd, DAM Capital Advisors Ltd, Jefferies India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd are the book-running lead managers to the issue.