Shares of construction firm Capacit’e Infraprojects made a strong debut on the bourses on Monday and ended with a sharp gain of 37% from the issue price of Rs 250. The stock listed at Rs 399, a premium of 59.6% over the issue price of Rs 250 on BSE. However, the stock gave up its initial gains and ended the session at Rs 342, a gain of 36.8% from its issue price. It later ended at Rs 342.40, up 36.96%. On NSE, shares of the company debuted at Rs 399, a surge of 59.6% against the issue price and closed the day with a gain of 37.02% at Rs 342.55.
The company’s market valuation stands at Rs 2,324.60 crore. The initial public offering (IPO) of Capacite Infraprojects was subscribed by 186 times.
The company had allotted 48 lakh equity shares at Rs 250 aggregating to Rs 120 crore to 15 anchor investors. DSP Blackrock India, Goldman Sachs, HSBC Global Investment Funds, ICICI Prudential Growth Fund and SBI Infrastructure Fund were among the investors who were allotted shares. Capacite Infraprojects had priced its IPO, aimed at raising up to Rs 400 crore, between Rs 245 and Rs 250 per equity share. The IPO was a fresh issue of shares up to Rs 400 crore. Marathon Capital Advisory Limited is the advisor to the issue. The company proposes to utilize the net proceeds of the issue for funding working capital requirements, funding purchase of capital assets and general corporate purposes.
Capacit’e Infraprojects provides construction services for residential buildings, multi-level car parks, corporate office buildings and buildings for commercial purposes and buildings for educational, hospitality and healthcare purposes. The company offers services such as the construction of concrete building structures as well as composite steel structures. Capacite also provides mechanical, electrical and plumbing (MEP) and finishing work. In 2017, 23 companies raised `30,115 crore through IPO. Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend. BSE, HUDCO, CDSL, Avenue Supermarts, Shankara Building Products, S Chand and Company, Cochin Shipyard and AU Small Finance Bank are some of the companies who completed their IPO in the last nine months.