Afcons Infrastructure Ltd. (AIL), part of the Shapoorji Pallonji Group, experienced a sharp 12% rebound in its stock price on the BSE, trading at Rs 470.70, following the company’s announcement of its successful bid for the Bhopal Metro Line-2 project. With a bid valued at Rs 1,006.74 crore, Afcons emerged as the lowest (L1) bidder for the Package BH-05 contract, a key component of the Bhopal Metro Phase 1 project.
Project Scope and Financial Backing
The Bhopal Metro Line-2 project, funded through a €400 million loan from the European Investment Bank, involves constructing a 12.9 km viaduct with 13 elevated stations, linking Bhadbhada Chauraha to Ratnagiri Tiraha. The ambitious project, led by Madhya Pradesh Metro Rail Corporation Ltd. (MPMRCL), also includes a ramp to the shared Subhash Nagar Depot, essential for efficient train maintenance and stabling across Bhopal’s metro network. The package has a three-year timeline, with Afcons set to execute one of the project’s most intricate sections.
Market Response and Stock Movement
Afcons’ entry into this major metro project fueled renewed investor confidence, reversing an earlier slump in its stock price post-listing. Initially debuting at Rs 430.05 on the BSE—7.01% below its IPO issue price of Rs 463—the stock had further dipped to Rs 419.85 before rallying after the project announcement. By midday, nearly 53 million Afcons shares had exchanged hands, indicating strong market interest.
Strategic Expansion and Future Outlook
Afcons Infrastructure, a heavyweight in construction with a diverse portfolio spanning marine, surface transport, urban infrastructure, hydro, and oil and gas sectors, has marked an impressive international footprint across Asia, Africa, and the Middle East. Its reputation for tackling high-value, complex projects aligns with India’s rapid urbanization and government infrastructure initiatives, bolstering Afcons’ prospects for continued growth.
As of June 2024, Afcons managed 65 active projects with an order book valued at Rs 31,747 crore. Recent accomplishments include constructing Kolkata Metro’s Hooghly tunnels, the Male-Thilafushi Link in the Maldives, and India’s first undersea rail tunnel for the Mumbai-Ahmedabad high-speed corridor. The Bhopal metro contract further strengthens its pipeline, setting Afcons on track for revenue stability and expansion.
