Capacite Infraprojects IPO sees huge response, subscribed 186 times on Day 3
Capacit’e Infraprojects’ Rs400 crore IPO received bids for 2,081,385,960 shares against the total issue size of 11,428,572 shares, shows NSE data
Mumbai: The initial public offering (IPO) of Capacit’e Infraprojects Ltd, a Mumbai-based construction company, was subscribed 186 times on Friday, the final day of the share sale, data from stock exchanges shows.
Capacit’e Infraprojects’ share sale is the most subscribed IPO so far in 2017. Other heavily subscribed IPOs this year include Central Depository Services (India) Ltd, which was subscribed 170 times; Dixon Technologies (India) Ltd, which was subscribed 117 times; Avenue Supermarts Ltd, which was subscribed 104 times; and Housing and Urban Development Corp. Ltd, which was subscribed almost 80 times.
The portion of Capacit’e Infraprojects’ shares reserved for institutional investors was subscribed 134 times, while that set aside for non-institutional investors was subscribed 651 times, setting the record for the highest ever subscription witnessed from non-institutional investors. Retail investors saw subscriptions to the extent of 16 times the limit.
The Rs400 crore IPO witnessed overwhelming response from investors and garnered over Rs52,000 crore. Capacit’e Infraprojects had priced its shares in a band of Rs245-250 for the share sale. The IPO will see the dilution of 24% stake. The company is backed by Siddharth Parekh-led private equity firm Paragon Partners. The IPO is a fresh issue of as many as 16 million shares.
The company plans to use the funds for working capital requirements, purchasing capital assets and general corporate purposes.
Axis Capital Ltd, IIFL Holdings Ltd and Marathon Capital Advisory Ltd are advising the company on the IPO.
Capacit’e Infraprojects undertakes construction of residential, commercial and institutional buildings, primarily in the Mumbai metropolitan region, the National Capital Region centred on Delhi, and Bengaluru.
According to its IPO prospectus, Capacit’e Infraprojects had a total revenue of Rs853 crore in fiscal 2015-16, up 54% from a year ago. For the nine-month period ended 31 December 2016, it had a revenue of Rs847 crore.