CapitalNumbers Infotech shares hit 5% lower circuit after muted debut on BSE SME

IT consulting and engineering company CapitalNumbers Infotech Ltd made a lacklustre debut on the BSE SME platform on Monday, January 27, with its shares listing at a premium of only 4% to the issue price.

The stock opened for trading at ₹274 apiece, reflecting gains of 4.18% compared to the issue price of ₹263 apiece. Soon after listing, the stock declined as much as 5% to hit the lower circuit limit at ₹260.3 apiece.

In early trade, more than 15.2 lakh equity shares changed hands on the BSE. The total turnover stood at ₹41.54 crore. The market valuation of the company stood at ₹635.83 crore.

At the listing price of ₹274 per share, the value of a single lot of shares bagged by investors in the IPO allotment reached ₹1,09,600 (₹274 x 400).

After listing of the stock, the IPO investors could have made gains of ₹4,400 per lot, as the minimum investment in a single lot was ₹1,05,200 (₹263 x 400).

CapitalNumbers Infotech IPO details

CapitalNumbers Infotech raised ₹169.37 crore through its initial public offering, which comprised fresh issuance of 32.2 lakh equity shares worth up to ₹84.69 crore and an offer for sale of 32.2 lakh equity shares worth up to ₹84.69 crore. The IPO price band was fixed at ₹250 to ₹263 per share. The lot size for a single application was 400 shares.

The issue was open for subscription from January 20 to January 22.

On the final day of the offer, the public offer received bids for 57.61 crore shares worth ₹15,145 crore against 42.77 lakh shares on offer, leading to oversubscription of 134 times. Retail investors’ portion was booked nearly 72 times, with applications for over 15.39 crore equity shares received against 21.38 lakh shares on offer.

The Non-Intuitional Investors’ (NIIs) quota was subscribed over 267 times as bids for 27.29 crore shares were received against 9.16 lakh shares on offer. The Qualified Institutional Buyers’ (QIBs) category was booked 122 times with applications for 14.93 crore shares against 12.22 lakh shares set aside for them.

CapitalNumbers Infotech is an IT engineering and digital consulting company that offers software development solutions. It offers services related to Digital Engineering, Artificial Intelligence/Machine Learning, Data Analytics, UI/UX Design, Cloud Engineering and advanced technologies like Blockchain. The company caters to enterprises and startups across the globe. It has more than 250 clients.

The company has proposed to utilise IPO proceeds for technology upgradation. It will also use a part of IPO proceeds for business development and investment in a subsidiary and fund its inorganic growth through acquisitions and strategic initiatives.

The proceeds from the OFS component will go to selling shareholders.

The company reported a net profit of ₹ 13.67 crore for the April-September period of FY2024-25. Its revenue stood at ₹51.64 crore during the six-month period.

The company posted a net profit of ₹25.98 crore for the year ended on March 31, 2024, against ₹17.35 crore in the year ended on March 31, 2023.

Its revenue stood at ₹100.38 crore in FY2024 against ₹92.98 crore in FY2023.