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Updated: July 11, 2025 20:05
Afcons Infrastructure Ltd, a leading engineering and construction firm under the Shapoorji Pallonji Group, has issued commercial papers worth Rs 550 crore. This move reflects the company’s proactive approach to managing short-term liquidity while supporting its expanding order book and operational scale.
Key Developments
The commercial papers are short-term unsecured debt instruments, typically used for working capital needs
Issued at competitive rates, backed by a strong credit rating of CARE A1+
Funds likely earmarked for project mobilization, equipment procurement, and interim cash flow support
Comes amid a robust order pipeline exceeding Rs 34,000 crore across domestic and international markets
Strategic Context
Afcons has been scaling up execution across metro, marine, tunneling, and surface transport projects
Recent wins include a Rs 1,283 crore marine package in Gujarat and two Pune Ring Road contracts worth Rs 4,787 crore
The company’s liquidity profile has improved, with Gross Current Asset days reducing from 306 to 266 over three years
Management maintains a liquidity coverage ratio of 1.25x against outstanding commercial paper
Market Sentiment
Investors view the issuance as a sign of disciplined financial planning
The move aligns with Afcons’ strategy to maintain undrawn credit lines and cash buffers
No incremental exposure to group companies, reinforcing standalone financial prudence
Sources: CARE Ratings, Economic Times, Trendlyne, Afcons Annual Report, BSE India, SEBI Prospectus Archive
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