Shapoorji arm plans initial float

Afcons, a Shapoorji Pallonji group company, is planning to raise around Rs 300 crore (Rs 3 billion) through an initial public offering.

The company is planning to issue 1.26 crore (12.6 million) fresh shares, which will form 18 per cent of the post-issue capital. The IPO is expected by March.

This will be the Shapoorji Pallonji group's first foray into the capital markets. Forbes Gokak, the only listed group company, was already listed when it was taken over by the Shapoorji group.

A company executive said the group considered listing the company mainly to "create visibility and unlock value". The proceeds from the IPO will be used to acquire capital assets such as specialised construction equipment, he said.

Afcons was acquired by the Shapoorji Pallonji group in 2000 when ICICI Bank sold its stake Shapoorji Pallonji Mistry, the reclusive owner of the group, owns around 96.9 per cent stake in the company.

Mistry is the fifth richest Indian and the Forbes Magazine estimated his networth in 2003 to be around Rs 9,200 crore (Rs 92 billion). Mistry also holds 18 per cent stake in Tata Sons and his son, Cyrus, joined the Tata Sons board in September 2006.

Afcons is counted among the top five construction companies in the country and has to its credit some specialised projects such as the cryogenic tanks at Dahej LNG terminal, nuclear power projects and train corridors.