New Delhi: Shares of Shapoorji Pallonji Group's flagship infrastructure engineering and construction firm. Afcons Infrastructure Ltd listed with a discount of 8 per cent against the issue price of Rs 463. The stock made its debut at Rs 430.05, a discount of 7.11 per cent from the issue price on the BSE. It further declined 9.31 per cent to Rs 419.85. On National Stock Exchange (NSE), the stock listed at Rs 426, registering a decline of 7.99 per cent.
The company's market valuation stood at Rs 16,680.87 crore. The company’s IPO got fully subscribed on the last day of its sale on Tuesday ending with 2.63 times subscription. The Rs 5,430-crore initial share sale had a price band of Rs 440-463 per share. The IPO had 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.
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Moreover, the company relies heavily on projects of government and government-related entities. If it fails to bid for such projects, which plays a major part in business revenue generation. Operating in a capital-intensive industry, it has utilised working capital demand loans from various banks worth Rs 1,594 crore .
Shapoorji Pallonji Group Allocates Rs 1,000 Crore for Growth and Debt Repayment
The Maharashtra-based company is set to 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.
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