Capacit’e Infra IPO Sees Record Subscription
Issue subscribed 186.5 times; HNI portion too a big draw, with demand rising 651 times
Mumbai: Capacit'e Infraprojects' Rs 400-crore initial public offering scripted a record on Friday, with the issue being subscribed 186.5 times, surpassing the record set by Central Depository Services, whose IPO was subscribed 119.4 times earlier this year. Going by the grey market premium of ₹ 150 over the IPO price band of ₹ 245-250, the company is likely to make a strong debut on the bourses. The Mumbai-based construction company’s IPO got bids for 208.8 crore shares against 1.14 crore shares on offer. The IPO also set a record in terms of the subscription by high net worth individuals, with the portion reserved for them bring subscribed 651 times.
The shares reserved for qualified institutional buyers was subscribed 134 times while those set aside for retail investors got subscribed 17.3 times. A day before the IPO opened on Wednesday, the company had raised Rs 120 crore by alloting 48 lakh shares to anchor investors. The anchor investors included Goldman Sachs India, HSBC Global Investment Funds, ICICI Pridential and Reliance Capital Trustee Co.
“The fundamentals of the issue are strong. The balance sheet is strong, there is reasonable debt and there is exceptionally high revenue visibility. The company is good both from a listing gains perspective and a long-term point of view,” said Geetanjali Kedia, analyst at SPTulsian.com.
Analysts said the company’s niche presence in high-rise residential construction, strong order book position and attractive valuation of 24 times on FY17 earnings per share augur well for the company.
The company will utilise the pro- ceeds from the issue for funding working capital requirements, purchase of capital assets and for general corporate purposes. The IPO comprises entirely of fresh issue of shares. Axis Capital, IIFL Holdings and Vivro Financial Services managed the issue.
For the financial year ended March 2017, the company reported a consolidated profit of ₹ 69.66 crore, up 42.6% from a year ago, while consolidated revenues from operations stood at ₹ 1,157 crore, up 35.6% from the previous financial year.
Besides Capacit’e, the current month has seen three companies—Dixon, Matrimony.com and Bharat Road—raise ₹ 1,700 crore collectively, while SBI Life and ICICI Lombard combined will be raising over ₹ 14,000 crore next week.