Capacite Infraprojects Share price and Fundamental Analysis

Company History

Capacit'e Infraprojects Limited is a fast growing construction company focussed on Residential, Commercial and Institutional buildings, with specialization in construction of super high rise buildings. The Company provides end-to-end construction services for residential buildings, multi level car parks, corporate office buildings and buildings for commercial purposes and buildings for educational, hospitality and healthcare purposes. The Company's capabilities include constructing concrete building structures as well as composite steel structures. It also provides mechanical, electrical and plumbing ('MEP') and finishing works.

The Company predominantly operates in the Mumbai metropolitan region ('MMR'), the National Capital Region ('NCR'), Bengaluru. Its operations are geographically divided into MMR and Pune ('West Zone'), NCR and Patna ('North Zone') and Bengaluru, Chennai, Hyderabad and Kochi ('South Zone').

Capacit'e Infraprojects Limited was incorporated as a private limited company with the name 'Capacit'e Infraprojects Private Limited' on 9th August 2012. During the financial year ended 31 March 2013, the company was accredited the Quality Management System - ISO 9001: 2008, Environmental Management System - ISO 14001: 2004 and Occupational Health and Safety Management System - OHSAS 18001: 2007.

During the financial year ended 31 March 2014, the company incorporated a special purpose vehicle with Pratibha Pipes and Structural Limited and Yongnam Engineering and Construction (Pte) Limited in the name of CIPL-PPSL-Yongnam Joint Venture Constructions Private Limited in Mumbai. Capacit'e Infraprojects was converted into a public limited company and the name of the company was changed to 'Capacit'e Infraprojects Limited' on 21st March 2014.

During the financial year ended 31 March 2016, HW Private Investments Limited made investment of Rs 63 crore in the company by subscribing to 10.07 lakh compulsorily convertible preference shares (CCPSs) and five equity shares.

During the financial year ended 31 March 2017, Paragon Partners Growth Fund - I, Infina Finance Private Limited, Jyotiprasad Taparia HUF and NewQuest Asia Investments II Limited made total investment of Rs 60 crore in the company by subscribing to 6.49 lakh compulsorily convertible preference shares of face value Rs 20 each.

The company raised Rs 400 crore from an initial public offer (IPO) in September 2017. The issue was open for subscription during the period from 13 September 2017 to 15 September 2017. The stock debuted at Rs 399 on BSE on 25 September 2017, a premium of 59.6% compared with the IPO price of Rs 250 per share.

On 6 November 2017, Capacit'e Infraprojects announced that it has bagged a contract worth Rs 825.01 crore (excluding GST), from Arihant Abode Ltd., a subsidiary of Arihant Superstructures Limited, for affordable housing project situated at Panvel, Maharashtra, in proximity to the proposed Navi Mumbai International Airport. The scope includes construction of civil and structural, finishing & MEP works to be executed in phases for 8 residential buildings of 42 floors each.

On 24 December 2017, Capacit'e Infraprojects clarified that the company has no direct or indirect linkage with Capacite Structure Limited and / or any other entity / individual sought to be probed. Capacit'e Infraprojects Limited and Capacite Structure Limited are different independent legal entities under different management. The company issued this clarification after some reports appeared in print and electronic media with regards to action taken by CBI on officials of NBCC, Capacite Structures Limited and others.

On 16 January 2018, credit rating agency India Ratings and Research (Ind-Ra) upgraded Capacit'e Infraprojects Limited's (CIL) Long-Term Issuer Rating to IND A' from IND A-', while resolving the Rating Watch Positive (RWP). The outlook is stable. The upgrade reflects an improvement in CIL's liquidity, post successful completion of an INR4 billion initial public offering in September 2017. The company intends to utilise these proceeds for its working capital requirements and purchase of capital assets.

On 22 June 2018, Capacit'e Infraprojects Limited announced that a consortium of the company (lead member), Tata Projects Limited and CITIC Construction Co Ltd, has received Letter of Acceptance from Mumbai Housing and Area Development Board (a MHADA Unit) for total contract value of Rs 11744.26 crore. The project will be executed through a Special purpose vehicle in which Capacit'e Infraprojects Limited will have 37.1% share worth Rs 4357.12 crore. Share of Tata Projects Limited in the Consortium will be 36.9% and CITIC Construction Co. Ltd. will have 26% share. The project involves technical designing (structure service + infrastructure), co-ordination and construction of rehabilitation/ sale/commercial/ amenities/any other structure along with construction of Habitable temporary transit camps, work of on-site, off-site infrastructure and landscaping & performing various co-ordination activities and obtaining all relevant permissions & approvals from all concerned authorities on lump-sum basis for Redevelopment of project of BDD Chawls at Lower Parel Division at Worli, Mumbai.

On 27 June 2018, Capacit'e Infraprojects Limited announced that it has received repeat orders from Oberoi Realty Group and Wadhwa Group and order from Kohinoor CTNL Lefrastructure Company Private Limited for total contract value of Rs 851 13 crore.

The Board of Directors of Capacit'e Infraprojects at its meeting held on 3 November 2018 considered and approved Draft Scheme of Arrangement amongst Capacit'e Infraprojects Limited (the Company) and CIPL-PPSL-Yongnam Joint Venture Constructions Private Limited, wholly owned subsidiary of the Company and respective Members and Creditors as may be amended from time to time (Draft Scheme) under sections 230 to 232 of the Companies Act, 2013, subject to receipt of approvals from shareholders and creditors of the Company as may be directed by National Company Law Tribunal (NCLT), BSE Limited and the National Stock Exchange of lndia Limited, the Securities and Exchange Board of India, and approval of other regulatory or statutory authorities as may be required.

On 28 November 2018, Capacit'e Infraprojects Limited announced that it has received contract worth Rs 335.38 crore from Bharat Sanchar Nigam Limited (BSNL), a Government of India Enterprise, for construction of buildings for Unified Network Management System including finishing work, water supply & sanitary installations, electrical installations and cable laying, automatic fire detection & fire-fighting system, lifts and such other development works.