About the Company:
Capacite Infra Projects is a fast growing construction company focused on Residential, Commercial and Institutional buildings, with growth in consolidated revenue from operations from Rs.2,14.2 crores for Fiscal 2014 to Rs. 11,57. crores for Fiscal 2017, and an Order Book of Rs.4,600 crores as at May 2017 comprising 56 ongoing projects.
They provide end-to-end construction services for residential buildings (“Residential”), multi level car parks, corporate office buildings and buildings for commercial purposes (collectively, “Commercial”) and buildings for educational, hospitality and healthcare purposes (“Institutional”). Their capabilities include constructing concrete building structures as well as composite steel structures. They also provide mechanical, electrical and plumbing (“MEP”) and finishing works.
Company predominantly operates in the Mumbai metropolitan region (“MMR”), the National Capital Region (“NCR”) and Bengaluru. Their operations are geographically divided into MMR and Pune (“West Zone”), NCR and Patna (“North Zone”) and Bengaluru, Chennai, Hyderabad, Kochi and Vijaywada (“South Zone”). As on May 31, 2017, projects in the West Zone, North Zone and South Zone constituted, approximately 58.93%, 14.29% and 26.79% of their total projects, respectively.
They work for a number of reputed clients and are associated with some marquee construction projects in India. Some of their clients include Kalpataru, Oberoi Constructions Limited, The Wadhwa Group, Saifee Burhani Upliftment Trust, Lodha Group, Rustomjee, Godrej Properties Limited, Brigade Enterprises Limited and Prestige
Estates Projects Limited.
Company’s quality of work and timely execution has resulted in good relationships with existing clients and helped them to secure projects from new clients. For example,they have secured repeat orders from some of their clients, namely the Lodha Group, The Wadhwa Group, Godrej Properties Limited, Transcon Developers Private Ltd, Ahuja Constructions and Puravankara Projects Limited, since the date of their first contract with each of them.
We believe that company’s client base, consisting of some of India’s leading real estate developers, allows them to bid for and secure a broad range of projects. Further, we believe that their ongoing execution of certain redevelopment projects, such as the Saifee Burhani Upliftment Project – Sub cluster 03 and Rustomjee Seasons, will allow them to qualify for and to bid for mass housing projects in the future.
As of May 31, 2017, they had 1,711 employees and 10,035 contract labourers across all the projects.
Some of the projects being done by the company (under various categories) are as follows:
Super High Rise. (more than 40 Floors)
Some of the projects of Super High Rise Buildings include The Park – Towers 3 and 4 for Lodha Group, H Mill for The Wadhwa Group and Enigma for Oberoi Constructions Limited.
High Rise.
Some of the projects of High Rise Buildings include Saifee Burhani Upliftment Project – Sub cluster 03 for Saifee Burhani Upliftment Trust, Tirumala Heights for Transcon Developers Private Limited, Century Breeze for Century Real Estate Holdings Pvt. Ltd. and The Tree for Provident Housing Limited.
Other Buildings.
Some of the projects of Other Buildings include the multi level car park for Sir Gangaram Hospital and Urbana Hyatt Place for Ozone Group.
Gated Community Projects.
Some of the Gated Community projects include Immensa for Kalpataru, The Walk for Hiranandani Constructions Private Limited, Prestige Hillside Gateway for Prestige Estates Projects Limited, Godrej Central for Godrej Properties Limited, Godrej Summit, Phase II for Godrej Premium Builders Private Limited and Neelkanth Woods – Phase
I & II in Thane for T Bhimjyani Realty.
Villa Projects.
They are also constructing a Villa project called Townsville for Patel Realty (India) Limited.
Company’s Future Growth Strategies:
- Expand in the mass housing segment.
- Expanding presence in cities with high growth potential.
- Undertake projects on a design – build basis.
- Increase the focus on and execute greater number of projects on a lock-and-key basis.(which gives more profit Margins)
- Bid for, and undertake, projects in the public sector.
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Objectives of the Issue:
- Funding working capital requirements;
- Funding purchase of capital assets (system formwork).
- General corporate purposes.
- Listing Benefits.
TOP 10 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | Mr. Rohit R Katyal | 10,816,190 | 20.84 |
| 2. | Katyal Merchandise Private Ltd | 9,072,994 | 17.48 |
| 3. | Paragon | 8,136,303 | 15.68 |
| 4. | NewQuest | 6,617,254 | 12.75 |
| 5. | Mr. Rahul R Katyal | 6,124,930 | 11.80 |
| 6. | Advance Housing Development Private Ltd | 5,245,800 | 10.11 |
| 7. | Mr. Subir Malhotra | 2,525,439 | 4.87 |
| 8. | Infina | 1,265,439 | 2.44 |
| 9. | Asutosh Trade Links | 1,189,153 | 2.29 |
| 10. | JT HUF | 822,101 | 1.58 |
| Total | 51,815,603 | 99.85% |
Management Team:
- Mr. Deepak Mitra (Designation: Chairman and Independent Director)
- Mr. Rahul R. Katyal (Designation: Managing Director)
- Mr. Subir Malhotra (Designation: Executive Director)
- Mr. Rohit R. Katyal (Designation: Executive Director and Chief Financial Officer)
Positives for the Company:
- Experienced Management team.
- Exclusive focus on construction of buildings in major cities.
- Large Order Book with marquee client base and repeat orders.
- Secured repeat orders from some of our clients.
- Ownership of modern system formworks and other Core Assets.
- Strong financial performance.
- Expand the presence in cities with high growth potential.
- Plans to bid for mass Housing projects to be developed by Government of India.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|
| Revenue | 216.58 | 562.58 | 860.24 | 1165.97 |
| Net Profit | 4.11 | 32.04 | 48.84 | 69.66 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 13th September 2017 |
| Isue Closes on:. | 15th September 2017 |
| Issue Price | Rs.245 – Rs.250 |
| Face Value | Rs.10 |
| Minimum Lot | 60 |
| Retail Allocation | 35% |
| Issue Constitutes | 23.56% |
| Issue Size | Rs.400 cr |
| Market Cap | Rs.1697.25 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered | 1,60,00,000 |
| Equity Shares Prior | 5,18,91,497 |
| Equity Shares after the issue | 6,78,91,497 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 21st September 2017 |
| Initiation of Refunds | on or Before 22nd September 2017 |
| Credit of Equity Shares: | on or Before 22nd September 2017 |
| Listing Date: | on or Before 25th September 2017 |
Subscription Details:(Will be Updated )
| (Subscription-Category-Wise (no. of times) Till time : 06:35 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 32,65,306 | 1.74 | 5.53 | 131.32 |
| NII | 24,48,980 | 0.127 | 0.288 | 638.04 |
| Retail | 57,14,286 | 1.55 | 5.961 | 16.96 |
| Employee | ——— | —— | —- | — |
| TOTAL | 1,14,28,572 | 1.34 | 4.67 | 188.72 |
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 17.22 | 14.51 | 23.17% | 74.36 |
Markets Guruji’s Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 35% |
