Afcons Infrastructure Raises Rs 1,621 Crore From Anchor Investors Ahead Of IPO

Shapoorji Pallonji Group's Afcons Infrastructure Ltd. has raised Rs 1,621.5 crore from anchor investors on Thursday ahead of its initial public offering. The company allotted 3.5 crore shares at Rs 463 apiece to 80 anchor investors.

HDFC Life Insurance Co. got the highest allocation of 2.34%. Manulife Global Fund- India Equity Fund got the second highest allotment of 1.85% and Baroda BNP Paribas Balanced Advantage Fund got 1.79% stake in the company.

Fifteen domestic mutual funds have applied through 31 schemes. They have collectively netted 33.44% of the anchor portion, the construction and engineering company said in an exchange filing on Thursday.

HDFC Mutual Fund, ICICI Prudential, Nippon Life India and Mirae were among the top fund houses in this category.

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

The company will launch its IPO on Friday to raise up to Rs 5,430 crore. The company has set a price band of Rs 440 to Rs 463 per share for its three-day IPO, which is a mix of both fresh issue and an offer for sale, totaling Rs 1,250 crore and Rs 4,180 crore respectively, at a face value of Rs 10 each.

The offer, which concludes on Tuesday, is set to list on the BSE and the National Stock Exchange.

The company plans to use the proceeds of the public issue to purchase construction equipment and to fund its long-term working capital needs. A portion of the proceeds will also be used for repayment of a portion of the company's borrowings and acceptances. Funds raised via the public issue will also be used for general corporate purposes.