Tata's biggest partner is going to bring this IPO
Afcons Infrastructure Limited, a leading company in the country's infrastructure sector, especially in bridge construction, is bringing its IPO before Diwali. Afcons Infra is a company of Shapoorji Pallonji Group, the largest shareholder of Tata Group. This IPO of Rs 5,430 crore of the company can change the fortunes of good investors investing in the stock market.
Shapoorji Pallonji Group has 18 percent stake in Tata Group's holding company Tata Sons. In this way, Shapoorji Pallonji Group is the biggest partner in Tata Group. When Ratan Tata left the post of Chairman of Tata Sons, Cyrus Mistry of Shapoorji Pallonji Group was made the head of Tata Sons. A few years ago, Cyrus Mistry died in a car accident. While Ratan Tata has recently passed away at the age of 86.
How will Afcons' IPO be?
The IPO of infrastructure engineering and construction company Afcons Infrastructure Limited (AIL) will open on October 25. According to the draft papers submitted by the company, the company will raise a total of Rs 5,430 crore from the IPO. The company's IPO will close on October 29. While anchor investors will have the opportunity to bid on October 24, a day before the IPO opens.
The company has not yet decided the share price band for this IPO. Rather, the company will announce it next week. In this IPO, the company will offer new shares worth Rs 1,250 crore. While shares worth Rs 4,180 crore will be kept for Offer for Sale (OFS).
The fortunes of many will shine
The buzz in the market regarding the IPO of Afcons Infra is also because at present the stake of its promoters and promoters group in the company is 99%. Higher stake of promoters is always considered a good reason for the growth of a company. Out of the total amount raised from the IPO, the company will use Rs 80 crore to buy construction tools. Rs 320 crore will be used for long term working capital and Rs 600 crore will be used to repay the debt. The remaining amount will be used to meet other corporate expenses.