Shares of Afcons Infrastructure, part of the Shapoorji Pallonji Group, witnessed an impressive rally on 16 December 2024. The stock soared over 5%, reaching INR 564.40 on the Bombay Stock Exchange (BSE), marking its highest point in a year. The surge came on the heels of a big announcement: Afcons clinched a Letter of Acceptance (LOA) from the Madhya Pradesh Metro Rail Corporation for the Bhopal Metro Phase 1 project.
Afcons Infrastructure – Contract Details
This new project is no small feat. It spans almost 13 kilometres of the metro’s blue line and is valued at a substantial INR 1,006.74 crore. Scheduled for completion within 36 months, the project will follow the Engineering, Procurement, and Construction (EPC) model.
Here’s what the work entails:
- Building a 12.91 km elevated viaduct.
- Constructing 13 elevated metro stations.
- Connecting key areas from Bhadbhada Chauraha to Ratnagiri Tiraha.
Afcons, in a formal exchange filing, confirmed the news, underscoring its reputation for delivering complex infrastructure projects on time and to specification.
The Bhopal Metro deal is just the latest in Afcons Infrastructure’s growing list of wins this year. In November 2024, the company bagged another significant project worth INR 1,274 crore from the Government of Uttarakhand. This contract involves civil construction for a high concrete gravity dam on the River Song in Dehradun.
The numbers speak for themselves. By September 2024, Afcons had already secured orders worth more than INR 19,000 crore for the financial year. The company is now targeting additional inflows of INR 5,000 crore, pushing its total order book to an impressive INR 34,000 crore.
Afcons Infrastructure – Key Highlights
- Afcons Infrastructure clinched a major INR 1,007 crore contract for the Bhopal Metro Phase 1 project.
- The company’s stock hit a 52-week high, boosted by strong investor confidence.
- Other significant wins include an INR 1,274 crore dam project in Uttarakhand.
- The total order book now exceeds INR 34,000 crore, with more inflows expected soon.
- Afcons aims for 25% revenue growth by FY26, supported by ongoing projects and new ventures.
Afcons Infrastructure IPO was listed in the stock market on 4 November 2024, at INR 474.20, a 2.42 % increase from its issue price of INR 463. The lukewarm debut, however, was short-lived. Since then, the stock has rebounded strongly. It is trading at INR 548.95, at the time of writing this news, an 18.56% jump from its listing price, leaving investors optimistic about its future.
Looking Ahead
Afcons isn’t slowing down anytime soon. The company has set ambitious goals for the next few years. Krishnamurthy Subramanian, the company’s Executive Vice Chairman, has expressed confidence in achieving a 25% revenue increase by FY26. The growth, he noted, will stem from ongoing projects and a steady stream of new opportunities, particularly in Maharashtra and other key regions.
Afcons’ strategy is clear: focus on large-scale projects while leveraging its strong execution capabilities. This approach, coupled with a robust order book, positions the company as a formidable player in India’s booming infrastructure sector.
In many ways, Afcons represents the potential of Indian engineering and project execution. From metro lines to massive dams, its portfolio reflects the scale of ambition driving the nation’s growth story. Investors, it seems, are taking notice—and betting big on what’s to come.
In 2024 so far, 7 IPOs from the construction sector have hit the primary market. Out of these, 5 IPOs have delivered positive listing returns, with an average listing gain of 13.75%.  For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
