Kapston Facilities Management Ltd

 Kapston Facilities Management

About the Company:

Kapston Facilities Management Limited (KFML), was incorporated in the year 2009 and is a provider of private security and facility management services in India.

Company is headquarters in Hyderabad (2 offices- Registered office and Corporate office), Kapston boasts of a widespread branch network consisting of 4 additional branch offices and 8 training centres across 10 cities in 8 states.

Company is an ISO 9001 & OHSAS 18001 certified company for providing Integrated Facility Management Services for Security, House Keeping, M&E (Electro Mechanical) and Landscaping (Horticulture) and allied services.

Company has grown considerably over such a short span and is one of the leading service providers of Security Services in Telangana & Andhra Pradesh.

Presently they have around 6394 employees, including a team of competent & qualified professionals & esteemed clients spread across different locations.

They serve prominent names of various segments including IT & ITES, Multinational Corporations (MNCs), Corporates, Industries, Banks, Hotels, Hospitals, Malls & Retail, Infrastructure, Construction projects and Residential Sites, etc.

Kapston plans to be a market leader in the security and facilities management industry with expansion plans in South India.

State wise Distribution of Revenues:

revenue distribution

Company’s Employee Strength:

employee strength

Services Provided by the Company:

Security Services:

  • Manned Guarding
  • Escort Guarding
  • Event management.

Facility Management:

  • House Keeping
  • Office Support & Staffing (Business Support Services)
  • Engineering & Maintenance (Electro, Mechanical & Technical Services)
  • Landscaping & Garden Maintenance.
  • Pantry Management Services.
  • Façade Cleaning Services.
  • Pest Control Services.


Infrastructure Facilities of the Company (For Training):

Company’s Academy is situated across a two-and-a-half-acre campus at Kompally, Hyderabad with a capacity of training 4000 students annually. Company is honored to be a part of ‘Rajiv Yuva Kiranalu’ a prestigious program under the Government of Andhra Pradesh.


Management Team:

  1. Mr. Srikanth Kodali (Designation: Managing Director)
  2. Mrs. Kanti Kiran Doddapaneni (Designation: Whole Time Director)
  3. Mr. Radha Krishna Pinnamaneni (Designation: Non-Executive Director)


Objectives of the Issue:

Offer for Sale (OFS): (Around Rs.10.59 cr)

  • Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.


Fresh Issue: (Around Rs.10.59 cr)

  • Part finance working capital requirements of the Company.
  • Part repayment of Unsecured Loans.
  • Meet General Corporate Purposes.
  • Meet Offer Expenses.


Fund Utilization:

Particulars Amount (Rs. in Crores)
Part Finance Working Capital Requirements 6.60
Part repayment of Unsecured Loans 2.0
Meet General Corporate Purposes 0.99
Issue Expenses 1.00
Net Proceeds 10.59 crores


Positives for the Company:

Integrated services provider in diversified business segments, industries and geographies.

Kapston Facilities Management is one of the leading provider of Security Services in Telangana and Andhra Pradesh.

They provide security and integrated facility management services to a various customer segments including IT & ITES, Multinational Corporations (MNCs), Corporates, Industries, Banks, Hotels, Hospitals, Malls & Retail, Infrastructure, Construction projects and Residential Sites.

Company’s operations are spread across 8 Indian states with 1 Registered office, 1 Corporate office and 6 branch offices across 10 cities in India, giving them a nation-wide presence and reducing their dependence on any one particular region.

Partnership with National Skill Development Corporation (NSDC):

Company has entered into an agreement with the National Skill Development Corporation India (“NSDC”).

NSDC is a one of its kind, Public Private Partnership (“PPP”) set-up by Ministry of Finance working under the supervision and control of Ministry of Skill Development and Entrepreneurship.

NSDC is a unique model, by which funds are provided to entities at a concessional interest rate of 6% p.a. and other terms of repayment. Such funds are required to be used by such company for investment towards Training Infrastructure  and Working Capital requirements.

Kapston has already availed a loan of Rs. 4.34 crores through this model and is successfully in process of complying with the terms of the Training Commitment, so much so that, it has already begun the process of applying to the NSDC for a further loan upto Rs. 20 crores to invest in its future financial requirements for training manpower/ facilities.

This continued public private partnership shall enable the Company to continue to reap the benefits of low interest costs and considerably lenient terms which in turn shall help in efficient Working Capital Management of the Company.


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17 31st Dec 17
Revenue  28.00  41.52  58.91  74.99 93.87  84.87
Net Profit  1.15  1.45  1.99  2.16  3.05  4.38


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Kapston Facilities Management Ltd 10 4.06 22.66 29.32% 16.60
Quess Corp Limited 10 9.10 110.70 13.56 66.02
Security and Intelligence Services Ltd 10 12.93 81.53 16.54 81.17


IPO Details:

Details Info
Issue Opens on 21st March 2018
Issue Closes on:. 23rd March 2018
Issue Price Rs.92
Face Value Rs.10
Minimum Lot 1200
Minimum Investment Rs.1,10,400
Issue Constitutes 26.49%
Issue Size Rs.21.19 cr
Market Cap Rs.79.99 cr
Listing at NSE SME
Equity Shares Offered (Fresh) 11,52,000
Equity Shares Offered (OFS) 11,52,000
Total Equity Shares Offered (Fresh + OFS) 23,04,000
Equity Shares Prior to the Issue 75,42,909
Equity Shares after the Issue 86,94,909


Important Dates:

Finalization of Basis of Allotment on or Before 28th March 2018
Initiation of Refunds on or Before 2nd April 2018
Credit of Equity Shares: on or Before 3rd April 2018
Listing Date: on or Before 4th April 2018


Subscription Details:

(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day-3
HNI  10,93,200  0.16  0.66  1.07
Retail  10,93,200  0.46  0.77  1.33
Others    1,17,600  0.00  0.00  0.00
Employee  ———  —-  —-  —–
TOTAL  23,04,000  0.29  0.68  1.14


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
4.06 22.66 29.32% 16.63


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Subscribe Long Term 10%


Check IPO Allotment Status:

Bigshare Website (Click on the below Link)



Company Contact Info:
Kapston Facilities Management Limited
Plot No.287, MIG-2, IX Phase
KPHB, Kukatpally Hyderabad- 500072,
Telangana, India.
Telephone: +91 9640504050
CIN: U15400TG2009PLC062658
Email id: info@kapstonfm.com
Website: www.kapstonfm.com


IPO Registrar Info:
1st Floor, Bharat Tin Works Building, Opp.
Vasant Oasis, Makwana Road,
Marol, Andheri East, Mumbai, Maharashtra 400059
Tel: 022 – 6263 8200; Fax: 022 – 6263 8299;
Email: ipo@bigshareonline.com;
Investor Email: investor@bigshareonline.com;
Website: www.bigshareonline.com


Lead Manager to the Issue:
906, Jay Antariksh 13/14, Makawana Road, Marol Naka,
Andheri (East), Mumbai – 400 059, India
Tel No.: +91 9322997964/ 022- 49749802
Email: info@ckpfinancialservices.com
Investor Email: investors@ckpfinancialservices.com
Website: www.ckpfinancialservices.com