Afcons Infrastructure Ltd (AIL), the infrastructure engineering and construction arm of the Shapoorji Pallonji Group, is set to launch its Rs 54.30 billion initial public offering (IPO) on October 25. The IPO will remain open until October 29, with bidding for anchor investors starting on October 24, as outlined in the company’s red herring prospectus (RHP).

The IPO will consist of a fresh share issue worth Rs 12.5 billion, along with an offer for sale (OFS) of up to Rs 41.8 billion by the promoter entity, Goswami Infratech Private Limited. Afcons plans to reveal the IPO's price band next week.

The offer size has been revised from the initial target of Rs 70 billion mentioned in the March draft prospectus, following a successful pre-IPO fundraising round.

Currently, Afcons Infrastructure, based in Maharashtra, is predominantly owned by its promoters, who hold a 99% stake. Proceeds from the fresh issue will be allocated as follows: Rs 800 million for purchasing construction equipment, Rs 3.2 billion for long-term working capital needs, Rs 6 billion for debt repayment, and the remainder for general corporate purposes.

(ET)