A promising player in India's tech landscape, CapitalNumbers Infotech Limited, is gearing up for an impressive ₹169.37 crore IPO debut. The digital consulting and IT services firm's offering is evenly split between a fresh issue and an offer for sale, each comprising 32.20 lakh shares worth ₹84.69 crores. With a brief subscription window from January 20-22, 2025, the company is charting its course toward a BSE SME platform listing scheduled for January 27, 2025.
For investors eyeing this tech sector opportunity, the equity shares come with a face value of ₹10 and are priced between ₹250-263 per share, with a modest lot size of 400 shares. Retail investors can join the action with a minimum investment of ₹105,200 per lot, while HNIs need to commit to at least two lots at ₹210,400. With the tech sector's growing prominence in India's economic landscape, this might be the perfect time to explore what CapitalNumbers brings to the table before the subscription window closes.
CapitalNumbers Infotech Limited IPO is a fundraise worth ₹169.37 crores comprising a fresh issue and an offer for sale with 330,000 shares reserved for the market maker Giriraj Stock Broking Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 20, 2025, to January 22, 2025, providing an opportunity for investors looking to gain a stake in the information technology sector.
| CapitalNumbers Infotech IPO date | January 20, 2025 - January 22, 2025 |
| Price band / Fixed price | ₹250 to ₹263 per share |
| Face value | ₹10 per share |
| Lot size | 400 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 32,20,000 shares amounting to ₹84.69 crores |
| Offer for Sale | 32,20,000 shares amounting to ₹84.69 crores |
| Total issue size | 64,40,000 shares amounting to ₹169.37 crores |
| Listing at | BSE SME |
| Market maker portion | 330,000 - Giriraj Stock Broking Pvt Ltd |
| Shareholding post-issue | 2,44,26,990 shares |
| Shareholding pre-issue | 2,12,06,990 shares |
The CapitalNumbers Infotech Limited IPO opens for subscription on January 20, 2025, and closes on January 22, 2025, with allotment scheduled for January 23, 2025.
| IPO open date | January 20, 2025 (Monday) |
| IPO close date | January 22, 2025 (Wednesday) |
| Basis of allotment | January 23, 2025 (Thursday) |
| Initiation of refunds | January 24, 2025 (Friday) |
| Credit of shares to Demat account | January 24, 2025 (Friday) |
| Listing date on BSE / NSE SME | January 27, 2025 (Monday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 22, 2025 (Wednesday) |
CapitalNumbers Infotech Limited, founded in 2012, is a global provider of digital consulting and IT engineering services. Specializing in complete software development solutions, the company offers a wide range of services including Digital Engineering, Data Analytics, AI/ML, Cloud Engineering, UI/UX Design, and emerging technologies like Blockchain and AR/VR. With a focus on tailored, project-based development and Time & Material (T&M) models, CapitalNumbers creates scalable solutions for businesses and startups worldwide. Serving over 1,000 clients, the company had 250 active clients as of September 2024.
The company provides custom software development, enterprise systems, automation tools, dynamic websites, e-commerce platforms, and mobile app development for both iOS and Android. It also emphasizes quality assurance through automated and manual testing to ensure high-quality, reliable software. As of September 2024, CapitalNumbers employed 447 professionals, reflecting its capacity to manage large-scale projects and continue offering innovative solutions across various industries.
CapitalNumbers Infotech plans to strategically deploy its IPO proceeds across several key initiatives aimed at fueling growth and expansion. The funds will be channeled into advancing cutting-edge technology, boosting business development activities, strengthening its subsidiary through strategic investments, and pursuing inorganic growth opportunities through acquisitions. Additionally, the company aims to capitalize on the benefits of stock exchange listing, while facilitating an offer for sale of 32,20,000 equity shares by its promoter selling shareholders. This comprehensive utilization strategy reflects the company's commitment to technological advancement, market expansion, and creating shareholder value.
The CapitalNumbers Infotech Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with Return on Capital Employed (ROCE) at 51.90%, the Return on Net-Worth (RoNW) at 38.62%, and the PAT Margin was 26.47%. The Price to Book Value was 8.29. The company’s market capitalisation is ₹642.43 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 5,164.14 | 10,038.8 | 9,298.1 | 6,963.23 |
| Assets | 8,995.96 | 7,290.57 | 6,895.91 | 4,872.2 |
| Net Worth | 8,114 | 6,744.95 | 5,996.12 | 4,251.23 |
| Profit After Tax | 1,367.04 | 2,598.88 | 1,735.28 | 1,583.82 |
| Reserves & Surplus | 5,993.3 | 4,624.25 | 5,985.28 | 4,240.39 |
| Total Borrowing | - | - | 107.13 | 116.18 |
Amount in ₹ lakhs
The pre-IPO EPS is at ₹12.25 while the post-IPO EPS will be ₹11.19. Similarly, the pre-IPO Price to Earnings ratio is 21.46 and will become 23.50 post-IPO.
CapitalNumbers Infotech Limited boasts a robust foundation built on long-standing customer relationships and consistent revenue generation, particularly through its 100% export-focused business model. The company has successfully established a strong global presence, primarily driven by its ability to maintain high customer satisfaction levels and deliver quality services across diverse industrial verticals.
The company's scalable business model is complemented by experienced leadership, with promoters and management bringing a decade of industry expertise to the table. Their strategic approach focuses on key growth drivers, including new account acquisition, talent development, strategic partnerships with Independent Software Vendors, and optimal resource utilization, creating multiple avenues for sustained growth.
A significant vulnerability lies in CapitalNumbers' heavy dependence on the US and UK markets, making it susceptible to regional economic fluctuations and adverse market developments. This geographical concentration is further complicated by foreign exchange risks, as a substantial portion of revenue is denominated in foreign currencies. Additionally, the company faces challenges in the rapidly evolving technology sector, where failing to keep pace with innovations or develop new services could lead to technological obsolescence.
The company grapples with several operational challenges, including high employee turnover in India's competitive IT labor market and potential intellectual property protection issues. Financial concerns are also noteworthy, as the company won't benefit from the Offer for Sale proceeds, and there's uncertainty around funding future inorganic growth initiatives. The reliance on a few major clients poses another significant risk, as any loss of these key accounts could substantially impact revenue and growth prospects.
An early stake in CapitalNumbers Infotech Limited's public journey could offer investors a chance to tap into India's booming IT sector through a company that's positioning itself for significant growth. However, making an informed decision requires a thorough evaluation of the company's performance metrics, industry position, and expansion plans. Smart investors will want to dive deep into the offer document, weigh the company's strategic vision against market realities, and perhaps consult financial advisors to determine if this IPO aligns with their investment goals and risk tolerance.
What is the CapitalNumbers Infotech Limited IPO?
The CapitalNumbers Infotech Limited IPO is an BSE SME offering consisting of a fresh issue of 32.20 lakh equity shares and an offer for sale of 32.20 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹169.37 crores. The price band has been set between ₹250 to ₹263 per share, with a minimum order quantity of 400 shares. This IPO will be open for subscription from January 20, 2025, to January 22, 2025. GYR Capital Advisors Private Limited is the book-running lead manager, Link Intime India Private Limited is the registrar while Giriraj Stock Broking Private Limited is the market maker.
When will the CapitalNumbers Infotech IPO open?
The CapitalNumbers Infotech Limited IPO will open for subscription on January 20, 2025, and will close on January 22, 2025.
When is the CapitalNumbers Infotech IPO listing date?
The tentative listing date for the CapitalNumbers Infotech Limited IPO is Monday, January 27, 2025.
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