CapitalNumbers Infotech, a leading digital consulting and IT engineering firm, is set to raise ₹169.37 Crores through its Book Built Issue. The offering consists of 32.20 lakh fresh shares and an Offer for Sale of an equal number of shares, making the total issue size ₹169.37 Crores. The IPO opens for subscription on January 20, 2025, and closes on January 22, 2025, with a price band set between ₹250 and ₹263 per equity share.

At the upper price band of ₹263, CapitalNumbers Infotech will have a market capitalization of ₹642.42 Crores, a robust valuation for a company specializing in advanced digital technologies like AI/ML, data analytics, cloud engineering, and blockchain. This IPO targets both retail investors, requiring a minimum investment of ₹1,05,200, and High-Net-Worth Individuals (HNIs) who must invest ₹2,10,400 for two lots.

Company Overview
CapitalNumbers Infotech is recognized for providing end-to-end software development solutions to enterprises and startups across the globe. With a focus on Digital Engineering, Data Analytics, Cloud Engineering, and cutting-edge technologies like AR/VR and blockchain, the company has earned a stellar reputation in the IT sector. The company was founded by Mukul Gupta, who has received the Economic Times-Promising Entrepreneur award in 2021.

The company’s experienced leadership, including Vipul Gupta, focuses on finance and strategy, ensuring that CapitalNumbers Infotech is positioned for continuous growth in the global IT landscape.

Financial Performance
CapitalNumbers Infotech has demonstrated impressive growth over the years, with revenues increasing from ₹6,959.79 Lakh in FY 2022 to ₹10,024.75 Lakh in FY 2023, and ₹5,165.79 Lakh for the period ended September 30, 2024. The company's EBITDA and Profit after Tax (PAT) figures reflect strong operational efficiency and profitability.

For FY24, the pre-issue EPS stands at ₹12.15, while the post-issue EPS is ₹10.55, with the PE ratio hovering around 21.65x (pre-issue) and 24.92x (post-issue). These figures compare favorably with the industry’s average P/E ratio of 50x, indicating that the IPO is reasonably priced.

Grey Market Premium (GMP)
The GMP of CapitalNumbers Infotech is ₹65, reflecting a 24.71% premium over the issue price. This suggests strong potential for listing gains, which could benefit investors looking for short-term gains. However, since GMP is based on unorganized trading, it should be considered for informational purposes only and does not guarantee actual listing prices.

Subscription Status and Allotment
As of 5:00 PM on January 22, 2025, the CapitalNumbers Infotech IPO has been subscribed a massive 124.64 times, signaling substantial demand for the shares. The IPO allotment date is set for January 23, 2025, and investors can check their allotment status online by entering their application number, PAN, or DP Client ID on the registrar’s website.

Objectives of the IPO
CapitalNumbers Infotech plans to utilize the proceeds of the IPO for several key initiatives:

1. ₹1,782 Lakh for the advancement of leading-edge technology.
2. ₹1,500 Lakh for increased spending on business development.
3. ₹500 Lakh for investment in a subsidiary.
4. Strategic acquisitions and other initiatives to drive inorganic growth.
5. General corporate purposes and the benefits of being listed on the stock exchanges.

Investment Outlook
With a strong growth trajectory, impressive financials, and a focus on cutting-edge digital technologies, the CapitalNumbers Infotech IPO offers a promising investment opportunity. Investors seeking exposure to the IT consulting and AI/ML sectors could find this IPO appealing, especially with a potential listing gain of 24.71% based on the GMP.

Recommendation: For investors with a risk appetite, particularly those seeking listing gains, this IPO presents an attractive opportunity. Given the company’s strong financial performance, promising growth potential, and favorable market dynamics, we recommend applying for CapitalNumbers Infotech Limited IPO.

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