Ca­pacit’e In­fra IPO Sees Record Sub­scrip­tion

Is­sue sub­scribed 186.5 times; HNI por­tion too a big draw, with de­mand ris­ing 651 times

The Economic Times - - Markets: Beating Volatility - Our Bureau

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 SPTul­

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, Mat­ri­ and Bharat Road—raise ₹ 1,700 crore col­lec­tively, while SBI Life and ICICI Lom­bard com­bined will be rais­ing over ₹ 14,000 crore next week.

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