Key Highlights: 

  • Capacit'e Infraprojects get listed at 60% premium on stock exchanges
  • Capacit'e Infraprojects got oversubscribed by 183 times in its IPO issue
  • Capacit'e Infraprojects raised over Rs 400 crore from its IPO issue

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Mumbai-based construction company Capacit'e Infraprojects listed at a premium of 60%, at Rs 399 per share on Monday.

At 1107 hours, the company's stock price was trading at Rs 366-per share higher by Rs 116 or 46.42% on BSE – as against its IPO issue price of Rs 250 per share.

The company is listed in the 'B' Group Securities category on BSE.

Priyakant Dave, analyst, Quant Broking said, "CIL’s asset light business model, proven execution track record, healthy order book of Rs.4,600 crore (4x FY17 revenue) and superior margin provides strong earnings growth visibility.”

During FY14-17, Capacit'e posted robust revenue compounded annual growth rate (CAGR) of 75% and EBITDA CAGR 121%. 

Currently, its EBITDA margins stand healthy at 14% versus 7% in FY14. CIL's PAT grew at a CAGR of 175% over FY14-17. 

On September 13, 2017, Capacit'e lauched its Rs 400 crore initial public offering (IPO) at a price between Rs 245 - Rs 250 per share. At the end of the issue, the company received oversubscription of 183.03 times.

At the higher price band of Rs 250, the offer was valued at 24.5x P/E on FY17 basis (post dilution), which is in-line with peers like Ahluwalia Contracts (trading at 21.8x its FY17 EPS), Simplex Infrastructures (18.8x), PSP Projects (31.7x).

With this block buster performance in primary market, Capacit'e has become the fourth company to receive over 100 times subscription since the start of the year 2017.

So far this year, Avenue Supermarts has gotten over-subscribed by 104.59% following BSE-owned Central Depository Services Limited (CDSL) which saw over 170-times subscription and Salasar Techno Engineering which saw whopping 273.05 times subscription.

Also Capacit'e has become the third highest company to get over 150 times subscription since the year 2000.

Nandish Shah, Research Analyst, Nirmal Bang, said, "With Real estate regulatory act being passed in majority of the states, we expect professional EPC players like Capacite to gain traction as majority of the real estate developers would focus more on the business development and marketing front.”

Shah added, “ There is a big emphasis on timely delivery of construction services and more emphasis on demand for quality and durability of construction."