Shares of Capacit'e Infraprojects, a Mumbai-based construction company, made blockbuster debut on exchanges today even in a weak market. Its shares surged as much as 49 per cent to Rs 373 compared to its issue price of Rs 250. Capacit'e Infraprojects' Rs 400 crore initial public offer (IPO), which ended on September 15, has been the most subscribed issue of this year. The IPO was subscribed 186 times led by strong demand from non-institutional investors, who bid for 651 times the shares that were reserved for them. The portion reserved for Institutional investors was also subscribed 134 times.
Capacit'e Infraprojects has a track record of timely project execution and an order book of Rs. 4,600 crore, which gives revenue visibility, say analysts.
Capacit'e Infraprojects will use the proceeds from the IPO for funding working capital requirements and for purchase of some capital assets.
Incorporated in 2012, Capacit'e Infraprojects provides construction services for high rise and super rise buildings, gated communities, commercial and official complexes, institutional buildings and multilevel car parks. Its top clients include Kalpataru, Oberoi Realty, Godrej Properties and Prestige Estates Projects.
Capacit'e Infraprojects' asset light model and earnings growth potential makes the stocks attractive, analysts say. Its revenues have grown from Rs 214 crore in FY2014 to Rs 1,157 crore in Rs FY2017 while its net profit catapulted to Rs 70 crore from Rs 4.11 crore during the same period.
As of 10:06 am, Capacit'e Infraprojects' shares traded 47.60 per cent higher at Rs 369 compared to 0.89 per cent decline in the broader Nifty.
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