Afcons Infrastructure Limited has received a termination notice from SOCIÉTÉ AUTOROUTIERE DU GABON (SAG) for a major highway project in Gabon, following the earlier invocation of bonds by the client. The company disclosed this development under Regulation 30 of SEBI LODR.

Project Details and Current Status

The terminated contract involves the design, construction, rehabilitation, and upgradation of National Road NR1 from PK 24+000 to PK 105+000, covering approximately 117 km. The project carries a contract value of approximately EUR 113.03 million.

Company's Response and Legal Position

Afcons Infrastructure has contested the termination, stating that it believes the client's action is inconsistent with the contractual terms and applicable law. The company emphasized that the major portions of the project, approximately 93.47%, have been completed and opened to traffic nearly two years back. The remaining balance portions are awaiting land handover from the client.

The infrastructure company continues to pursue its contractual and legal remedies to address what it considers an unjustified termination. The dispute appears to center around the completion of remaining work that is dependent on land handover by the client.

Business Impact Assessment

Afcons Infrastructure has provided assurance regarding the limited impact of this termination on its broader business operations. The company stated that the dispute is project-specific in nature and does not impact the company's overall order book or operational capability.

Regulatory Compliance and Future Updates

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Gaurang Parekh signed the disclosure document, ensuring proper regulatory adherence.

Afcons Infrastructure has committed to keeping stock exchanges informed of any material developments in the matter as the legal proceedings progress. The company's proactive communication approach demonstrates its commitment to transparency with stakeholders and regulatory compliance.

Afcons Infrastructure promoter Shapoorji Pallonji and Company Private Limited has filed an official regulatory disclosure regarding the creation of a fresh pledge on 1,22,34,940 equity shares on February 16, 2026. The disclosure, submitted under SEBI regulations on February 17, 2026, was communicated to both BSE Limited and National Stock Exchange of India Limited where the company's shares are listed.

Official Regulatory Filing Details

The pledge disclosure was made under Regulation 31(1) of SEBI (Substantial Acquisition of Shares & Takeover) Regulations, 2011, following the format prescribed by SEBI Circular No. SEBI/HO/CFD/DCRI/CIR/P/2019/90 dated August 07, 2019. The document was signed by F.K. Bhathena, Director of Shapoorji Pallonji and Company Private Limited (DIN: 00010075), and addressed to both stock exchanges where Afcons Infrastructure trades under scrip code 544280 on BSE and symbol AFCONS on NSE.

Pledge Specifications and Valuation

The pledged shares were valued at Rs 3,99,22,60,922 based on the NSE closing price of Rs 326.30 per share on February 16, 2026. On BSE, the shares were valued at Rs 3,99,10,37,428 at Rs 326.20 per share on the same date. The pledge has been created in favor of Catalyst Trusteeship Limited as debenture trustee for working capital requirements, securing an amount of Rs 170 crore with a security cover ratio of 2.347.

Complete Promoter Holdings Now Encumbered

With this latest pledge, Shapoorji Pallonji now has 100% of its shareholding in Afcons Infrastructure encumbered. The promoter holds a total of 5,66,81,410 shares, representing 15.41% of the company's total share capital. This includes a previous pledge of 4,44,46,470 shares (12.08% of share capital) created on June 25, 2025, in favor of SBICAP Trustee Company Limited for a working capital facility from a consortium of lenders led by State Bank of India.

Regulatory Compliance and Documentation

The official disclosure document confirms that the encumbered shares represent 100% of Shapoorji Pallonji's shareholding in Afcons Infrastructure, which constitutes 78.41% of the promoter's total holdings. The filing includes detailed annexures providing comprehensive information about existing encumbrances, security cover ratios, and the specific purpose of fund utilization. The document was copied to Mr. Gaurang Parekh, Company Secretary & Compliance Officer of Afcons Infrastructure Limited, ensuring proper communication channels as per regulatory requirements.