Afcons Infrastructure on Monday announced that it was declared as the lowest bidder for construction of a new package for Bhopal Metro Phase 1 project’s 12.915 km Blue Line (Line-2) which will connect Bhadbhada Chauraha – Ratnagiri Tiraha via 13 elevated stations.
Afcons’ bid of ₹1,006.74 crore was declared the lowest - L1. The project is expected to be completed in 36 months.
“This package by Madhya Pradesh Metro Rail Corporation Ltd (MPMRCL) includes the construction of the entire Blue Line’s viaduct, 13 stations, and a ramp leading to Subhash Nagar Depot which will be shared with Orange Line (Karond Circle – AIIMS) for maintaining and stabling,” the newly listed company says in a stock exchange filing.
MPMRCL had invited bids for the Blue Line’s construction, financed by the European Investment Bank (EIB) through a 400 million euro loan. The contract comes with a 3 year construction deadline.
Reacting to the development, shares of Afcons rose 3.5% in intraday trade to hit a high of ₹479.25 on the BSE after making a muted debut on stock exchanges today. The share price of the Mumbai-based engineering and construction company listed at ₹426 on the NSE, down 8% against the initial public offering (IPO) price of ₹463 per share. On the BSE, the stock started trading at ₹430.05, down 7.1% over the issue price.
Afcons Infrastructure, part of the Shapoorji Pallonji group and established in 1959, has a legacy of over six decades in infrastructure engineering. As of September 30, 2023, it has completed 76 projects in 15 countries, with a contract value of ₹52,220 crore and an active order book of ₹31,700 crore from 67 projects. The company operates across Asia, Africa, and the Middle East, specializing in marine, surface transport, urban infrastructure, hydro, and oil and gas projects.
The IPO was a combination of fresh issuance of equity shares worth ₹1,250 crore and an offer for sale (OFS) of shares worth ₹4,180 crore by its promoter Goswami Infratech.
Ahead of opening of the IPO, the Mumbai-based company raised ₹1,621 crore from anchor investors. It allocated over 35 lakh equity shares to 80 anchor investors at the upper end of the IPO price band at ₹463 per share on October 24, 2024.
The company has already raised ₹2,896 crore in the pre-IPO round, which saw participation from some marquee investors such as GIC Singapore, Enam Holdings, Synergy Capital, 360 One, Quant MF, and others. Out of ₹1,250 crore raised from fresh equities, Afcons intends to use ₹150 crore for capital expenditure towards purchase of construction equipment; ₹350 crore for funding long term working capital requirements; ₹500 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the company. The remaining fund will be used to meet general corporate purposes.
