Capacit’e Infraprojects IPO: Brokerage Views & Run up to IPO

Capacit’e Infraprojects Limited IPO
This post on Capacit’e Infraprojects Limited IPO tries to bring out consolidated brokerage views opinions, IPO Review / Analysis, Note/ reports and recommendation of brokerages , Analyst, Business New papers, Management views, information on Anchor investors, Subscription etc on Capacit’e Infraprojects Limited IPO and shall be updated continuously till the closure of the issue. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Capacit’e Infraprojects Limited IPO or not.

Capacit’e Infraprojects Limited IPO : Allotment Status Click Here

Related Posts: 
  1. Capacit’e Infraprojects Limited: Comparison with peers
  2. Capacit’e Infraprojects IPO Review
Capacit’e Infraprojects IPO: Grey Market Premium etc.

13/9/17 Grey Market Premium Rs. 120+  ,  Kostak (Application rate) –  Rs. – 550/-
13/9/17 Grey Market Premium Rs. 110+  ,  Kostak (Application rate) –  Rs. – 500/-
12/9/17 Grey Market Premium Rs. 110+  ,  Kostak (Application rate) –  Rs. – 400/-
11/9/17 Grey Market Premium Rs. 100+  ,  Kostak (Application rate) –  Rs. – 350/-

Subscription: Capacit’e Infraprojects Limited IPO ( x times)
  QIB NII Retail Total
Day 3  183.0  638.05  17.57  183.0
Day 2   5.53 0.28 5.96  4.62
Day 1  1.74   0.11 1.55  1.30
Complete Anchor List

 The Board of Directors of the Company at its meeting held on September 12, 2017, in consultation with the Book Running Lead Managers  has finalized allocation of 4,800,000 Equity Shares to  25  Anchor Investors at a price of Rs. 250 per Equity Share . These Anchor investors include  GOLDMAN SACHS INDIA LIMITED, HSBC GLOBAL INVESTMENT FUNDS- INDIAN EQUITY, HDFC TRUSTEE COMPANY LTD- HDFC EQUITY SAVING FUND., ICICI PRUDENTIAL. GROWTH FUND – SERIES 8, ICICI PRUDENTIAL VALUE FUND – SERIES , ICICI PRUDENTIAL INDIA RECOVERY FUND SERIES , ICICI PRUDENTIAL BUSINESS CYCLE FUND SERIES, SBI SMALL AND MIDCAP FUND etc. 
Click Here for Anchor List

Brokerages, Analysts, Business New Paper Reports, Management Views on Capacit’e Infraprojects IPO .

Ajcon Global: “At the upper end of the price band of Rs. 250, the IPO is valued at 24x at FY17 EPS on post IPO basis, we believe the IPO is fairly priced. With due
consideration to factors like a) exclusive focus on construction of buildings in major cities, b) specialist in construction of high rise buildings where competition is limited, c) large Order Book with marquee client base and repeat orders, d) ownership of stateof-the-art system formworks and other core assets, e) access to skilled workforce, f) seeking a great number of lock and key projects including MEP, finishing and interior services which enjoy higher margins, g) strong financial performance as evident by its robust topline and PAT growth, favorable cash conversion cycle, strong ROE of 23.2%, we recommend “SUBSCRIBE” to the issue.”

Angel Broking: “Considering, CIL’s experienced management, revenue visibility, strong track record of timely delivery of projects and strong relationships, we believe that CIL would continue to gain incremental order inflow going ahead. At the upper end of the price band, the pre-issue P/E works out to be 18.6x FY2017 earnings, which is lower compared to P/E multiple of its peers i.e. Ahluwalia – 22x, PSP 32x.
Moreover, post RERA, a contractor with strong track record of timely project delivery would garner major order. Hence, owing to all the positive factors, healthy return ratios we rate this IPO as “SUBSCRIBE”.”

Choice Broking: “On valuation front, CIL is trading at a premium to its peer. However, we feel that this is justified owing to its specialty in the construction in the high rise buildings and superior profitability and return ratios. Based on our quick estimate, we forecast the company to have an EPS of Rs. 14.2, which translates into a FY18E P/E multiple of 17.6x. Similarly, we forecast a RoE of 12.1% for FY18E. Thus considering the above observations, we assign a “SUBSCRIBE” rating for the issue.”

Capital Market: ” Score 47/100, At an asking price band of Rs 245-250 for a share of Rs 10 face value, the PE ratio on upper price band works out to 24.5 times its FY 2017 EPS on diluted equity. On comparison, the PE ratio of Ahluwalia Contracts is 21.6 times of its FY 2017 EPS. PE ratio of JMC Projects is 22.1 times of its FY 2017 standalone EPS. The EV/Order book was about 0.4 times for the company compared to 0.5 times for Ahluwalia Contracts and 0.3 times for JMC Projects. And the EV/Sales for the company were 1.6 times compared to 1.3 times for Ahluwalia Contracts and 0.8 times for JMC Projects.”

HEM Securities: “Co is bringing the issue at price band of Rs 245-250/share on post issue FY17 eps at p/e multiple of approx. 24.37 . Co’s large order book of Rs 46024.76 million gives strong revenue visibility. Also co has posted phenomenal growth in its financials with more than 70% CAGR from FY14 to FY17 in its topline & bottomline, thus making issue attractive one to deploy the funds in. Hence we recommend “Subscribe” on issue.”

ICICIDirect:At the IPO price band of | 245-250, the stock is available at 23.9-24.4x FY17 EPS). Given its robust orderbook position of | 4603 crore (4x FY17 revenues), lean balance sheet (D/E: 0.2x post IPO) and strong opportunities ahead, we believe CIL is in a better position to perform. better than industry growth. Hence, Ewe have a SUBSCRIBE recommendation on the issue”

KR Choksey: “ In terms of valuation, on the upper price band of INR 250, the company has been valued at ~24x on FY17 earnings as against 21.62x for Ahluwalia Contracts (India) Ltd and 16.2x for Simplex Infrastructures Ltd. We believe, valuations are reasonable given the prolific market size and potential to grow coupled with robust financial performance over FY14-FY17. Hence, we recommend ‘SUBSCRIBE’ rating on the issue.

MotilalOswal:Despite the Infrastructure segment struggling to grow in past few years, company has successfully delivered strong revenue / EBITDA / PAT growth of 75%/121%/169% in FY14-17. Other key strengths of the company are 1) Large Order Book with marquee client base and repeat orders, 2) Presence in cities with high growth potential, 3) Expansion in the mass housing segment, 4) superior ROEs / ROCEs of 29.6% and 38.1%. At upper price band, the issue is priced at PE of 24xFY17 post issue (and 19x FY17 pre-issue) which we believe is attractive in context of strengths mentioned above. Hence we recommend SUBSCRIBE for long term investment.”

Nirmal Bang: “Over FY13- FY17 the company’s revenues have grown at a CAGR of 75% though EBIDTA has grown at a CAGR of 114%. EBIDTA margins improved from 6.8% in FY13 to nearly 13.7% in FY17 on the back of higher revenue growth and tight control over other expenses. The company has also maintained its finance charges by keeping a tight control over working capital. Net profit witnessed a growth of 170% from FY14 to FY17 at Rs. 69.4Cr during the same period. At Rs. 250 per share (Upper end of the price band), CIL is offered at 24.5x P/E on a fully post issue diluted capital based on FY17 EPS of Rs.10.2. With Real estate regulatory act being passed in majority of the states, we expect professional EPC players like Capacite to gain traction as majority of the real estate developers would focus more on the business development and marketing front. There is a big emphasis on timely delivery of construction services and more emphasis on demand for quality and durability of construction. We recommend subscribing to the issue.”

SP Tulsiyan website:
“Key strengths favouring the company are niche presence in high rise residential construction, healthy historic growth rates, presence in rich geographies of Mumbai and other metros, extremely strong order book position, able and experienced promoters and marquee PE investors. Having scaled up business smartly in a very short period of time, company looks very promising, which, coupled with attractive valuations, makes the issue a subscribe, both for listing gains and for long term value investors.  “

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