Afcons Infrastructure Ltd IPO

Strong Track Record of Timely Execution of Large-Scale, Complex and High-Value Projects.

Large Order Book and Strong Financial Performance.

Collaboration among Internal Teams and with JV counterparties, and a Strategic Equipment Base leading to Strong Execution Capabilities.

Knowledge Management and Innovation Practices.

Experienced Leadership Team with Shapoorji Pallonji Group parentage.

Strong Risk Management, Project Selection and Dispute Resolution Processes.

If the company fails to qualify for, or win new contracts from project owners, its business, financial condition, result of operations, prospects and cash flows could be adversely affected.

The companys business significantly depends on projects awarded by government or government-ownedcustomers, which subjects the company to a variety of risks. Such projects contributed to 69.80% of the companys Orders Book as of June 30, 2024.

A portion of the Net Proceeds may be utilized for prepayment and / or re-payment of all, or a portion of, certain outstanding borrowings availed by the Company from State Bank of India, which is an affiliate of one of the Book Running Lead Managers, i.e., SBI Capital Markets Limited.

One of its group companies and a member of the Promoter Group, Shapoorji Pallonji Finance PrivateLimited (SPFPL) is registered as a non-banking financial company not accepting public depositswith the RBI and is subject to periodic inspections by the RBI, and any non-compliance with observations made by the RBI during these inspections could result in penalties and restrictions being imposed on SPFPL.

The SP Group relies on dividends from its Company as a source of income and cash flows. Any reduction or delay in the declaration or payment of dividends by the Company may adversely affectthe financial position and liquidity of the SP Group.

Certain amounts which have been recognized as contract assets relate to uncertified work or contract variations which are under arbitration. its may be required to write-off such assets if the company clients does not certify such work or if arbitration proceedings are not decided in its favor.

Certain government authorities are seeking royalties / penalty payments from the company for the alleged illegal use of minerals (Murrum) in the construction of a project. The company has filed a writ petition challenging such royalties / penalty payments. If the company writ petition is not allowed, its may be required to pay such royalties / penalties, which may adversely affect its results of operations and financial condition.

The Company is subject to risks relating to fluctuations in prices of raw materials on overseas projects.

A part of the company Order Book is in early stages of execution and may be subject to delays, cancellations,cost overruns or disputes, which could adversely affect its business, financial condition and results of operations.

The company may not be able to recognize unbilled revenues in a timely manner or at all, which may adversely affect its financial condition and results of operations.