Residential buildings stand in Ahmedabad, Gujarat (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know About Capacit’e Infraprojects IPO

Capacit'e Infraprojects Ltd.’s three-day initial public offering opens on Wednesday as the construction services provider seeks working capital and funds to acquire equipment, betting on the government’s housing and infrastructure push.

The Mumbai-based company will issue 1.6 crore fresh shares at Rs 245-250 apiece to raise up to Rs 400 crore. Axis Capital, IIFL Holdings and Vivro Financial Services are the book running lead managers to the issue.

Here’s all you need to know about the company and the offer…

About The Company

Capacit'e Infraprojects provides end-to-end construction services for residential, car parks, offices and commercial complexes. It counts Kalpataru Group, Oberoi Constructions Ltd., Wadhwa Group, Saifee Burhani Upliftment Trust, Lodha Group, Rustomjee, Godrej Properties Ltd., Brigade Enterprises Ltd. and Prestige Estates Projects Ltd. among its clients.

It operates in north, south and west India.

Shareholding Pattern

While no shareholder is selling stake, promoters’ holding will come down 57 percent to 43 percent after the company issues fresh shares. Rohit Kaytal holds 20.84 percent while his brother Rahul Katyal owns 17.5 percent stake. The remaining promoter group shares are held by Subir Malhotra and others.

Proceeds Of the Issue

  • Rs 250 crore towards funding working capital requirement.
  • Rs 51.95 crore to acquire capital assets like system formwork.
  • Rs 98 crore for general corporate purposes.

Financial Highlights

  • With an order book of Rs 4,600 crore as of May and timely project execution helped the company’s revenue grow from Rs 17.8 crore to Rs 1,157 crore in five years to March, a compounded annual growth rate of 130 percent.
  • Capacit'e Infraprojects reported a profit of Rs 69.7 crore in the year ended March compared to a loss of Rs 3.6 crore five years ago.
  • Its debt-to-equity ratio has come down to 0.5 times from 1.7 times in five years.
  • Return on equity at 23.15 percent is higher compared to listed peers like Ahluwalia Contracts (India) Ltd., JMC Projects (India) Ltd. and Simplex Infrastructures Ltd.
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