Article

Capacit’e Infraprojects Ltd- Information Note

12 Sep 2017 Nikita Bhoota

Untitled Document

This document summarizes a few key points related to the issue and should not be treated as a comprehensive summary. Investors are requested to refer the Red Hearing Prospectus for further details regarding the issue, the issuer company and the risk factors before taking any investment decision. Please note that investments in securities are subject to risks including loss of principal amount and past performance is not indicative of future performance. Nothing herein constitutes an offer of securities for sale in any jurisdiction where it is unlawful to do so.

This document is not intended to be an advertisement and does not constitute an invitation or form any part of any issue for sale or solicitation of an offer to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis for any contract or commitment whatsoever.

Issue Opens: September 13, 2017
Issue Closes: September 15, 2017
Face Value: Rs 10
Price Band: Rs 245- Rs 250
Issue Size: ~Rs 400 cr (16 mn shares)
Bid Lot: 60 Equity shares (and in multiples thereon)           
Post Issue Market Cap: ~Rs 1,697 cr (at upper band)
Issue Type: 100% Book Building

% shareholding

Pre IPO

Post IPO

Promoter

57.3

43.8

Public

42.7

56.2

Source: RHP, * calculated based on info from RHP (at upper band)

Company Background

Capacit’e Infraprojects Ltd. (CIL) is a fast growing Construction Company with a focus on Residential, Commercial and Institutional buildings. Its capabilities include construction of concrete building structures as well as composite steel structures. It also provides mechanical, electrical and plumbing (MEP) and finishing works. It primarily operates in the Mumbai metropolitan region (MMR), the National Capital Region (“NCR”) and Bengaluru. As on May 31, 2017, projects in the West Zone (MMR and Pune), South Zone (Bengaluru, Chennai, Hyderabad, Kochi and Vijaywada) and North Zone (NCR and Patna) constituted approximately 58.9%, 26.8% and 14.3% of its projects respectively. CIL has a strong clientele which includes Kalpataru, Oberoi Constructions Limited, The Wadhwa Group, Lodha Group, Rustomjee, Godrej Properties Limited etc.

Objective of the Offer

The offer consists of Fresh Issue of ~16 mn equity shares (aggregating upto ~Rs 400 cr). The proceeds of the issue will be used for funding working capital requirements (Rs 250 cr), purchase of capital assets (~ Rs 52 cr) and for other general corporate purposes.

Key Points

  1. CIL has a strong order book of Rs 4,602 cr (May 31, 2017); comprising 56 ongoing projects which include Residential (90%), Commercial (9.6%) and Institutional (0.4%) projects.
  2. CIL’s quality of work and timely execution has allowed it to enhance its relationships with existing clients which has resulted into several repeat orders. These capabilities have also helped the company in securing projects from new clients.
  3. CIL aims to expand its presence in the South Zone; thereby reducing concentration in a few markets such as MMR. Additionally, it plans to increase its presence in other cities, such as Ahmedabad, which has high growth potential.
  4. CIL intends to capitalize on recent government initiatives such as “Housing for All by 2022’’ by bidding for redevelopment and mass housing projects in major cities in India.
  5. CIL’s quality of work and timely execution has allowed it to enhance its relationships with existing clients which has resulted into several repeat orders. These capabilities have also helped the company in securing projects from new clients.

      *For additional information and risk factors please refer to the Red Herring Prospectus. Please note that this document is for information purpose only.

      Research Disclaimer

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      Capacit’e Infraprojects Ltd- Information Note

      12 Sep 2017 Nikita Bhoota

      Untitled Document

      This document summarizes a few key points related to the issue and should not be treated as a comprehensive summary. Investors are requested to refer the Red Hearing Prospectus for further details regarding the issue, the issuer company and the risk factors before taking any investment decision. Please note that investments in securities are subject to risks including loss of principal amount and past performance is not indicative of future performance. Nothing herein constitutes an offer of securities for sale in any jurisdiction where it is unlawful to do so.

      This document is not intended to be an advertisement and does not constitute an invitation or form any part of any issue for sale or solicitation of an offer to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis for any contract or commitment whatsoever.

      Issue Opens: September 13, 2017
      Issue Closes: September 15, 2017
      Face Value: Rs 10
      Price Band: Rs 245- Rs 250
      Issue Size: ~Rs 400 cr (16 mn shares)
      Bid Lot: 60 Equity shares (and in multiples thereon)           
      Post Issue Market Cap: ~Rs 1,697 cr (at upper band)
      Issue Type: 100% Book Building

      % shareholding

      Pre IPO

      Post IPO

      Promoter

      57.3

      43.8

      Public

      42.7

      56.2

      Source: RHP, * calculated based on info from RHP (at upper band)

      Company Background

      Capacit’e Infraprojects Ltd. (CIL) is a fast growing Construction Company with a focus on Residential, Commercial and Institutional buildings. Its capabilities include construction of concrete building structures as well as composite steel structures. It also provides mechanical, electrical and plumbing (MEP) and finishing works. It primarily operates in the Mumbai metropolitan region (MMR), the National Capital Region (“NCR”) and Bengaluru. As on May 31, 2017, projects in the West Zone (MMR and Pune), South Zone (Bengaluru, Chennai, Hyderabad, Kochi and Vijaywada) and North Zone (NCR and Patna) constituted approximately 58.9%, 26.8% and 14.3% of its projects respectively. CIL has a strong clientele which includes Kalpataru, Oberoi Constructions Limited, The Wadhwa Group, Lodha Group, Rustomjee, Godrej Properties Limited etc.

      Objective of the Offer

      The offer consists of Fresh Issue of ~16 mn equity shares (aggregating upto ~Rs 400 cr). The proceeds of the issue will be used for funding working capital requirements (Rs 250 cr), purchase of capital assets (~ Rs 52 cr) and for other general corporate purposes.

      Key Points

      1. CIL has a strong order book of Rs 4,602 cr (May 31, 2017); comprising 56 ongoing projects which include Residential (90%), Commercial (9.6%) and Institutional (0.4%) projects.
      2. CIL’s quality of work and timely execution has allowed it to enhance its relationships with existing clients which has resulted into several repeat orders. These capabilities have also helped the company in securing projects from new clients.
      3. CIL aims to expand its presence in the South Zone; thereby reducing concentration in a few markets such as MMR. Additionally, it plans to increase its presence in other cities, such as Ahmedabad, which has high growth potential.
      4. CIL intends to capitalize on recent government initiatives such as “Housing for All by 2022’’ by bidding for redevelopment and mass housing projects in major cities in India.
      5. CIL’s quality of work and timely execution has allowed it to enhance its relationships with existing clients which has resulted into several repeat orders. These capabilities have also helped the company in securing projects from new clients.

          *For additional information and risk factors please refer to the Red Herring Prospectus. Please note that this document is for information purpose only.

          Research Disclaimer