CapitalNumbers Infotech Limited is all set to debut in the market with its IPO scheduled from January 20, 2025, to January 22, 2025. This IPO offers a book-built issue of ₹169.37 crores, including fresh issues and an offer for sale. Below, we analyze this IPO in detail, covering its financial performance, business model, market prospects, and key highlights.
CapitalNumbers Infotech IPO Details
| Particulars | Details |
|---|---|
| IPO Date | January 20, 2025 – January 22, 2025 |
| Price Band | ₹250 to ₹263 per share |
| Minimum Lot Size | 400 shares |
| Issue Size | ₹169.37 crore |
| Fresh Issue | ₹84.69 crore |
| Offer for Sale (OFS) | ₹84.69 crore |
| Listing | BSE SME |
| Market Maker Portion | 3,30,000 shares |
| Anchor Investor Portion | ₹48.19 crore (18,32,400 shares) |
The IPO aims to raise funds for advancing technology, expanding business development initiatives, and pursuing inorganic growth through acquisitions.
Financial Performance of CapitalNumbers Infotech
Key Financial Metrics (₹ in Lakhs)
| Metric | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 8,995.96 | 7,290.57 | 6,895.91 | 4,872.2 |
| Revenue | 5,164.14 | 10,038.8 | 9,298.1 | 6,963.23 |
| PAT (Net Profit) | 1,367.04 | 2,598.88 | 1,735.28 | 1,583.82 |
| Net Worth | 8,114.0 | 6,744.95 | 5,996.12 | 4,251.23 |
Profit Margins and Ratios:
- PAT Margin: 26.47% (as of Sep 2024)
- Return on Capital Employed (ROCE): 51.90%
- Return on Net Worth (RoNW): 38.62%
Key Takeaway:
The company has shown consistent growth in its financials, with robust profit margins and returns. Its ROCE and RoNW are particularly impressive, indicating efficient use of capital and strong shareholder returns.
Business Model and Services Offered
CapitalNumbers Infotech Limited operates as a digital consulting and IT engineering services provider. The company offers a range of services catering to startups and enterprises worldwide.
Core Services:
- Custom Software Development: Tailored software solutions to optimize operations and scalability.
- Web Development: Dynamic websites, e-commerce platforms, and CMS solutions.
- Mobile App Development: iOS/Android apps and cross-platform solutions.
- Quality Assurance (QA): Manual and automated testing to ensure high-quality software.
Unique Strengths:
- Diverse client base with over 250 active clients worldwide.
- Strong certifications like ISO 9001, ISO 27001, and SOC 2 for quality and security.
- Awards including Economic Times Best Tech Brands 2024 and Clutch Top 1000 B2B Companies.
Industry Overview
The IT and BPM (Business Process Management) sector in India has been a major growth driver for the economy, contributing 7.4% to GDP in FY22 and projected to increase to 10% by FY26.
Key Trends in the Industry:
- Digital Transformation: Increasing demand for AI/ML, blockchain, and cloud engineering.
- Global Demand: Indian IT companies serve as global outsourcing hubs due to cost efficiency.
- Market Growth: The sector’s market size is expected to reach $500 billion by 2027.
CapitalNumbers Infotech is well-positioned to capitalize on these trends, given its expertise in emerging technologies and a growing international presence.
Competitive Analysis
Key Competitors:
- TCS
- Infosys
- Wipro
- Mindtree (specific to niche services)
Comparison Metrics:
| Metric | CapitalNumbers | Industry Leaders |
|---|---|---|
| ROCE | 51.90% | ~30-35% |
| PAT Margin | 26.47% | ~20% |
| Market Cap (₹ Cr.) | 642.43 | Multiple times larger |
While the scale of CapitalNumbers is smaller compared to industry giants, its profitability metrics surpass many larger players, making it an attractive mid-size investment.
Key Risks and Challenges
- High Competition: Operating in a fragmented IT services market could pressure margins.
- Client Concentration: Dependency on a few large clients may pose revenue risks.
- Global Factors: Economic slowdowns or currency fluctuations could impact revenues.
Investment Analysis
Valuation Metrics:
- Pre-IPO P/E Ratio: 21.46x
- Post-IPO P/E Ratio: 23.5x
- Price-to-Book Value (P/BV): 8.29x
Should You Invest?
Considering its strong financials, high growth potential, and reasonable valuation relative to peers, the CapitalNumbers Infotech IPO is worth considering for medium to long-term investors.
Key Dates to Remember
| Event | Date |
|---|---|
| IPO Open Date | January 20, 2025 |
| IPO Close Date | January 22, 2025 |
| Allotment Finalization | January 23, 2025 |
| Refunds Initiation | January 24, 2025 |
| Listing Date | January 27, 2025 |
Disclaimer
This article is for informational purposes only and should not be considered as investment advice. Investors are advised to conduct their own research or consult with a financial advisor before making investment decisions. The information provided here is based on the details available in the RHP and public sources at the time of writing.