Capacit’e Infraprojects’ Rs 400 crore IPO to open on 13 September: 5 things to know

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Published: September 7, 2017 1:20:47 PM

Capacit'e Infraprojects' Rs 400 crore initial public offer (IPO) will open for subscription on 13 September 2017. Here we take a look at five things to consider before going for this IPO.

The issue, with a price band of Rs 245-Rs 250 per equity share, will close on 15 September 2017. (Image: Reuters)

Capacit’e Infraprojects’ Rs 400 crore initial public offer (IPO) will open for subscription on 13 September 2017. The construction company will sell up to 1.6 crore new shares through this IPO. The issue, with a price band of Rs 245-Rs 250 per equity share, will close on 15 September 2017. Here we take a look at five things to consider before going for this IPO.

IPO details

Axis Capital Ltd, IIFL Holdings Ltd, and Vivro Financial Services Pvt Ltd are the book running lead managers while Karvy Computershare Pvt Ltd is the registrar to the issue. The bids can be made for a minimum of 60 equity shares and in multiples of 60 equity shares thereafter. The credit of equity shares to demat accounts will be on or about 22 September 2017 and trading will commence on or about 25 September 2017.

IPO proceeds

“We plan to utilise the proceeds of the issue for funding working capital requirements, purchasing of capital assets and general corporate purposes,” PTI reported citing company’s director Rohit Katyal.The company, which is focused on construction of residential, commercial and institutional buildings, had reported a consolidated revenue of Rs 1,166 crore in the financial year 2017. The company’s order book as on 31 May 2017 stands at Rs 4,600 crore with projects across metros like the Mumbai Metropolitan Region, the NCR, Patna, Bengaluru, Chennai, Hyderabad, Kochi, and Vijayawada.

Business attention

“We will continue to focus on the housing sector, especially on the back of growing demand in the segment. Initiatives like focus on affordable housing, RERA, easing FDI norms and interest rates coming down has driven the housing sector,” Rohit Katyal said. “Developing mass housing and educational and healthcare institutions and projects awarded by the public sector would be our key focus areas of growth. We will continue to expand in the metros where we are currently operating,” Katyal added.

Business profile

Capacit’e Infraprojects’ is a Mumbai based construction company incorporated in August 2012. The company is focused on Residential, Commercial and Institutional buildings in metro cities across India. Capacit’e Infraprojects’ provide end-to-end construction services for residential buildings, multi level car parking, corporate office buildings and buildings for educational, hospitality and healthcare purposes.

Financials

Capacit’e Infraprojects’ reported a rise of 45% in the consolidated net profit for the financial year ended 31 March 2017 to Rs 69.31 crore. The company had posted a net profit of Rs 47.68 crore in the last financial year.

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