Debt Route Activated: Afcons Infrastructure To Raise Rs 500 Million Via NCDs

Afcons Infrastructure Ltd has approved the issuance of non-convertible debentures (NCDs) worth up to Rs 500 million, marking a strategic move to bolster its funding base for ongoing and upcoming infrastructure projects. The decision was formalized through a board resolution on September 24, 2025, and reflects the company’s intent to tap debt markets for cost-effective capital amid rising execution momentum across transport and marine engineering segments.

 

The NCDs will be issued on a private placement basis to eligible investors, with tenure, coupon rate, and redemption terms to be finalized in subsequent tranches. The funds are expected to support working capital needs, project mobilization, and refinancing of existing liabilities.

 

Key highlights from the announcement:

- Board approval granted for issuance of NCDs up to Rs 500 million  

- Instruments to be issued in one or more tranches via private placement  

- Proceeds earmarked for working capital, project execution, and debt servicing  

- NCDs will be unsecured and non-convertible, with fixed income terms  

- The move aligns with Afcons’ capital strategy to diversify funding sources  

 

Strategic Context And Sector Outlook

Afcons, a subsidiary of Shapoorji Pallonji Group, is currently executing large-scale infrastructure contracts including metro corridors, marine terminals, and high-speed rail packages. With government spending on infrastructure expected to remain strong through FY26, the company is positioning itself to scale operations and maintain liquidity buffers.

 

The NCD issuance complements Afcons’ broader financial strategy, balancing equity, internal accruals, and structured debt to sustain growth.

 

Sources: BSE Corporate Filings, Afcons Infrastructure Board Resolutions, Economic Times Infra Finance Desk, BusinessLine Debt Market Tracker.