Overview
Capital Infra Trust IPO is scheduled to start on January 7, 2025 giving investors an opportunity to invest in a diversely diversified infrastructure portfolio. In this article, we look into everything you need to know about the IPO from the financial performance, analyst recommendation to the list of risks.
Key Details of the Capital Infra Trust IPO
Financial Performance of Capital Infra Trust
| Financial Year | Total Income (Rs crore) | Net Profit (Rs crore) |
|---|---|---|
| FY22 | 1,981 | 125.55 |
| FY23 | 2,518 | 497.2 |
| FY24 | 1,543.51 | 125.76 |
Timeline of the Capital Infra Trust IPO
| Event | Date |
|---|---|
| Anchor Bidding | January 6, 2025 |
| Subscription Period | January 7-9, 2025 |
| Allotment Date | January 10, 2025 |
| Refunds Initiation | January 13, 2025 |
| Demat Credit | January 13, 2025 |
| Listing Date | January 14, 2025 |
Sponsor Information and Business Overview
GCL is a prominent company offered 15 years of experience in road and highway construction and the sponsor of Capital Infra Trust. NHAI has already awarded 11 out of 26 hybrid annuity model (HAM) projects for GCL to implement.
Portfolio Highlights
- Total Projects: 26 road projects under HAM
- Completed Projects: 11
- Geographic Reach: Across 19 states in India
- CRISIL Rating: NCDs and long term bank loans finally get ‘Provisional ‘CRISIL AAA/Stable’
Objectives of the IPO
The proceeds from the IPO will be utilized for the following:
- Repayment or Pre-Payment: Including the repayment or prematurity of external borrowings.
- Unsecured Loans: It has settled unsecured loans from Gawar Construction Limited, the sponsor.
Analyst Recommendations
Financial experts have shared positive views on the IPO:
Canara Bank Securities:
- Recommendation: Subscribe for long-term.
- Reason: Trends in stable income and growth potential are shown.
Bajaj Broking:
- Recommendation: Subscribe for long-term.
- Reason: Dividend distribution notes, partial redemption, capital appreciation.
Risks Associated with the Capital Infra Trust IPO
Investors should be aware of the potential risks:
- Asset Overvaluation: Infrastructure assets are overvalued.
- Delays in Annuity Payments: NHAI’s payments could end up getting delayed.
- Rising Interest Rates: For example increased borrowing costs could hurt profitability.
- Operational Challenges: The challenge of managing and operating infrastructure assets can be large.
Grey Market Premium (GMP)
In the grey market the shares of Capital Infra Trust trade at no premium as of January 7, 2025, implying that there is no price edge to the IPO listing price. Since January 1, 2025, the GMP status has not changed.
Why Capital Infra Trust IPO is a great investment for you?
Stable Income Potential
The road projects are part of the trust’s portfolio which ensures a steady stream of annuity income for the stakeholders, on long term agreements with the NHAI.
Growth Opportunities
As India’s infrastructure sector expands, the trust is well placed to benefit from future growth opportunities.
Strong Sponsor
The trust is credible and reliable because of GCL’s track record and experience in the road construction.
Allocation and Investor Categories
| Category | Allocation Percentage |
|---|---|
| QIB (Qualified Institutional Buyers) | Up to 75% |
| NII (Non-Institutional Investors) | At least 25% |
Key Highlights
- IPO Size: Fresh Issue: Rs 1,077 crore, Offer for Sale: Rs 501 crore
- Price Band: Rs 99-100 per share
- Minimum Investment: Rs 15,000
- Lead Managers: HDFC Bank Limited and SBI Capital Markets Limited
- Registrar: Kfin Technologies Limited
Conclusion
Contact Information
Capital Infra Trust: compliance@capitalinfratrust.com | +0124 4920139
Registrar: nationalinfra.units@kfintech.com | 04067162222, 04079611000
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