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Afcons Infrastructure Ltd, a subsidiary of the renowned Shapoorji Pallonji Group, made headlines on Monday as it emerged as the lowest bidder (L-1) for a significant project worth ₹1,006.74 crore. The contract, encompassing the construction of Package BH-05 of the Bhopal Metro Phase 1 project, specifically the 12.915 km Blue Line (Line-2), is expected to be completed within three years. This ambitious project will connect Bhadbhada Chauraha and Ratnagiri Tiraha via 13 elevated stations, further enhancing the city's infrastructure.
The Blue Line's construction is funded by the European Investment Bank (EIB) through a substantial €400 million loan. The package, awarded by the Madhya Pradesh Metro Rail Corporation Ltd (MPMRCL), involves the construction of the entire Blue Line viaduct, 13 strategically placed stations, and a crucial ramp leading to the Subhash Nagar Depot. This depot will be shared with the Orange Line (Karond Circle – AIIMS) for maintenance and stabling purposes.
Despite a less-than-ideal debut on the stock exchanges, Afcons Infrastructure's shares managed to recover some lost ground, trading with gains of up to 3% during Monday's afternoon session. The company's stock initially listed at an 8% discount to its initial public offering (IPO) price of ₹463. The IPO, which concluded on October 29 after a public subscription period from October 25, successfully raised a substantial ₹5,430 crore for the company.
Afcons Infrastructure, with its rich legacy spanning over six decades, has established a strong presence in various sectors, including marine and industrial projects, surface transport projects, urban infrastructure projects, hydro and underground projects, and oil & gas projects. The company's impressive orderbook, reaching ₹31,747 crore at the end of June 2024, highlights its robust position in the market. The funds raised through the IPO are intended for strategic investments in capital expenditure, long-term working capital, prepayment or repayment of outstanding borrowings, and general corporate purposes, demonstrating Afcons Infrastructure's commitment to growth and expansion.
Source: Afcons Infra emerges as lowest bidder for ₹1,000 crore project; Stock recovers after tepid listing