Afcons Infrastructure, the construction arm of Shapoorji Pallonji Group (SP Group), is looking to raise up to Rs 8,000 crore through an initial stake sale. The proceeds would be utilised to pare debt and fund expansion plans. The firm is expected to launch its initial public offering (IPO) in this financial year. The business conglomerate is also in talks with a clutch of domestic and international firms, including ICICI Securities and SBI Capital, for the IPO, which would be mostly through an offer for sale (OFS) and the bankers for the issue would be finalised soon, probably within a week, sources close to the development told FE.
SP Group, the single largest stakeholder in Tata Sons, the investment-holding arm of all Tata Group companies, is also believed to be in talks with DAM Capital, Nomura and Jefferies and others for the IPO, they added.When contacted, a spokesperson for SP Group declined to comment.Mumbai-based construction and engineering company Afcons Infrastructure is a closely held company, with presence in road construction, general civil engineering works, offshore oil and gas, among others. The firm also owns land parcels, including in Karnataka, through its arms.
Earlier, the group had plans to sell stakes in Afcons to investors, which was shelved.An IPO by Sterling and Wilson Solar in 2019 was the last time an SP Group firm had raised funds from the markets.
The fundraising comes close on heels of Goswami Infratech, another group company, raising nearly Rs 14,500 crore by issuing bonds to domestic and global private credit funds on Monday. The investors included Edelweiss Special Opportunities Fund, Davidson Kempner, Ares Capital Management, Varde Partners and Cerberus Capital Management, Deutsche Bank and Standard Chartered Bank, among others.
Earlier, in April, SP Group had plans to raise about $1.7 billion to repay part of its debt and infuse cash in its operating companies, through various means such as pledging of shares.
The group intended to raise part of the funding by pledging shares it holds in Tata Sons. As of April, Shapoorji Pallonji and Company (SPCPL), the holding company of SP Group, had a debt of about Rs 20,000 crore.