-, Oct 01, 2024, India Blooms News Service
Mumbai/IBNS: The Shapoorji Pallonji (SP) Group is considering increasing the size of the initial public offering (IPO) for Afcons Infrastructure Ltd, with the aim of raising between Rs 8,000 and Rs 8,500 crore due to strong interest from institutional investors, Moneycontrol reported, citing people familiar with the matter.
Sources told Moneycontrol under the condition of anonymity that under the revised plan, the SP Group may raise Rs 3,500 to Rs 4,000 crore in a pre-IPO round through a secondary share sale to foreign and domestic institutional investors, as well as family offices and high-net-worth individuals.
Initially, the group had set a fundraising target of Rs 7,000 crore, which included a Rs 5,750-crore secondary share sale by SP Groups Goswami Infratech and a primary fundraising of Rs 1,250 crore.
Afcons has garnered considerable interest from global and domestic institutional investors for its upcoming IPO. Some feedback from investors suggested increasing the offering size to meet the strong demand, one of the sources was quoted as saying by Moneycontrol.
To address this interest, the company may conduct a pre-IPO round, which could lead to a larger overall deal, though the IPO size itself might be smaller than initially expected, according to the report.
The offer size could be reduced to approximately Rs 4,000 to Rs 4,500 crore, depending on the pre-IPO rounds outcome, reports Moneycontrol.
Afcons Infrastructure, however, has not officially commented on the matter so far.
This move to adjust the offer size comes as the SP Group is in discussions with several lenders to refinance its debt, Moneycontrol reported.
A larger fundraising through Afcons would provide the SP Group with additional capital to manage its debt, offering reassurance to its lenders, as per the report.