CapitalNumbers Infotech, a digital consulting and IT engineering company, made its stock market debut on January 27, 2025, on the BSE SME platform. The shares opened at ₹274 per share, a 4.18% premium over the issue price of ₹263.
However, the excitement was short-lived as the stock dropped to ₹260.30, a 1% decrease from the IPO price.
Key Details of the CapitalNumbers Infotech IPO
IPO Structure:
- Total IPO Size: ₹169.37 crore
- Price Range: ₹250–₹263 per share
- IPO Period: January 20 to January 22, 2025
- Fresh Issue: 32.20 lakh shares worth ₹84.69 crore
- Offer for Sale (OFS): 32.20 lakh shares worth ₹84.69 crore
Subscription Highlights
The IPO saw robust demand, with an overall subscription of 134.64 times:
- Non-Institutional Investors (NII): Subscribed 297.32 times
- Retail Investors: Subscribed 72 times
- Qualified Institutional Buyers (QIBs): Subscribed 122.19 times
This overwhelming interest highlights investor confidence in the company’s potential for growth, despite the stock’s tepid debut.
How Will the IPO Proceeds Be Used?
CapitalNumbers Infotech plans to utilize the funds raised for:
- Technological Advancements: Developing cutting-edge technologies to remain competitive in the market.
- Business Development: Increasing marketing and business outreach efforts.
- Inorganic Growth: Exploring acquisitions to expand its market presence.
- Strategic Initiatives: Investing in subsidiaries and other corporate purposes.
About CapitalNumbers Infotech
Business Focus:
CapitalNumbers Infotech specializes in digital consulting and IT engineering, offering comprehensive solutions to enterprises and startups globally.
Its services include:
- Software Development: End-to-end solutions for businesses.
- Data Analytics: Helping clients derive insights from data.
- AI/ML Development: Artificial Intelligence and Machine Learning services.
- Cloud Engineering: Cloud-based IT solutions.
- UI/UX Design: Enhancing user experience through advanced design.
- AR/VR & Blockchain: Leveraging emerging technologies for business solutions.
Workforce & Clients:
- Employees: Over 500 IT professionals and consultants.
- Clients: More than 250 global clients served from locations across India.
Financial Performance
CapitalNumbers Infotech has demonstrated consistent financial growth in recent years:
| Financial Year/Period | Revenue from Operations (₹ crore) | Profit After Tax (₹ crore) |
|---|---|---|
| FY 2020-21 | ₹47.04 crore | ₹12.54 crore |
| FY 2021-22 | ₹69.07 crore | ₹15.84 crore |
| FY 2022-23 | ₹92.57 crore | ₹17.35 crore |
| Period Ending Jan 31, 2024 | ₹82.79 crore | ₹21.64 crore |
The company has shown steady revenue and profit growth, with a notable profit increase in the latest period.
Why Did the Stock Make a Tepid Debut?
Despite the strong subscription numbers, CapitalNumbers Infotech’s shares struggled on debut due to the following factors:
- Market Sentiment: Ongoing market volatility has dampened enthusiasm for newly listed stocks.
- Valuation Concerns: Some investors may view the IPO pricing as stretched relative to industry peers.
- Profit Booking: Early investors could have cashed out to secure initial gains, driving the stock price lower.
Should You Consider Investing in CapitalNumbers Infotech?
Key Strengths:
- Strong foothold in digital consulting and IT engineering, with a focus on emerging technologies like AI/ML, blockchain, and AR/VR.
- Steady financial growth and consistent profitability.
- Robust demand during the IPO subscription phase, reflecting investor confidence.
Key Risks:
- Dependence on global markets makes the company vulnerable to economic downturns.
- Rising competition in the IT and consulting space could pressure margins.
Expert Advice:
Investors should consult certified financial advisors before making any decisions.
FAQs
What was the IPO price of CapitalNumbers Infotech?
The IPO price was set at ₹263 per share, with a price range of ₹250–₹263.
How did the stock perform on its debut?
CapitalNumbers Infotech’s shares opened at ₹274 (4.18% premium) but dropped to ₹260.30 by the end of the trading session.
What is the size of the IPO?
The IPO raised a total of ₹169.37 crore, consisting of a fresh issue and an offer for sale (OFS) worth ₹84.69 crore each.
How were the funds raised in the IPO allocated?
The funds will be used for technological advancements, business development, inorganic growth through acquisitions, and general corporate purposes.
How many times was the IPO subscribed?
The IPO was subscribed 134.64 times, with notable demand from non-institutional investors (297.32 times) and retail investors (72 times).
What services does CapitalNumbers Infotech offer?
The company provides digital consulting and IT engineering services, including data analytics, AI/ML, blockchain, AR/VR, cloud engineering, and UI/UX design.
How has the company performed financially?
The company has shown consistent growth, with revenue increasing from ₹47.04 crore in FY 2020-21 to ₹92.57 crore in FY 2022-23.
Who are the key clients of CapitalNumbers Infotech?
The company serves over 250 clients globally, ranging from enterprises to startups.
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