Shapoorji Pallonji Group’s company gets Sebi approval for Rs 7000 crore....

Shapoorji Pallonji group's Afcons Infrastructure Ltd (AIL), a flagship infrastructure engineering and construction company, has received Sebi's nod to raise funds (Rs 7,000 crore) through initial public offerings (IPO), PTI reported.

Going by the draft papers, Afcons Infrastructure Ltd's Rs 7,000-crore proposed 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 5,750 crore by a promoter Goswami Infratech Pvt Ltd. The company had filed their preliminary IPO paper with the market regulator between March and June. 

At present, only two Shapoorji Pallonji Group entities -- Forbes & Co and Gokak Textiles Ltd. -- are listed on the stock exchanges. Afcons IPO will mark the second time when a company from the Group has tapped the primary market, after Sterling and Wilson Renewable Energy Ltd. The company made their stock market debut in August 2019, however, it was later acquired by Mukesh Ambani's Reliance Industries after the SP Group divested shares to alleviate debt.

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Moreover, promoter and promoter group entities own a 99.48 per cent stake in Maharashtra-based Afcons Infrastructure. Proceeds from the fresh issue to the extent of Rs 150 crore will be used for capital expenditure towards the purchase of construction equipment; Rs 350 crore for funding long-term working capital requirements; Rs 500 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the company; and general corporate purposes.

(With inputs from PTI)