CapitalNumbers Infotech is a leading player in the digital consulting and IT engineering space, offering end-to-end software development solutions for enterprises and startups worldwide. Established by Mukul Gupta, the company's services span a wide range of technological advancements, including Digital Engineering, Data Analytics, Artificial Intelligence/Machine Learning (AI/ML), Cloud Engineering, UI/UX Design, and cutting-edge technologies like Blockchain and Augmented Reality/Virtual Reality (AR/VR).

The company has gained recognition for its innovative approach in these advanced fields and has established itself as a trusted partner to various businesses across different sectors.

IPO Details
The CapitalNumbers Infotech IPO is a Book Built Issue amounting to ₹ 169.37 Crores, comprising an offer for sale (OFS) and a fresh issue. The price band is set at ₹ 250 to ₹ 263 per share, and the lot size is 400 shares. The subscription period runs from January 20, 2025, to January 22, 2025, with the allotment date scheduled for January 23, 2025. The listing date on the BSE SME is expected to be January 27, 2025.

Grey Market Premium (GMP)
As of January 15, 2025, the Grey Market Premium (GMP) for the IPO is ₹ 65, indicating a 24.71% potential gain at listing. The GMP reflects market sentiment, though it does not guarantee future performance, as it is based on unregulated trading.

IPO Subscription Status
The IPO has attracted strong investor interest, with the subscription status showing that it was subscribed 125.04 times as of January 22, 2025, signaling high demand and positive market sentiment towards the offering.

Financial Performance and Metrics
CapitalNumbers Infotech has shown consistent growth in its financials, with revenues for FY2024 standing at ₹ 5,165.79 lakh, an increase from previous years. The EBITDA for FY2024 is ₹ 1,877.36 lakh, and the Profit After Tax (PAT) stands at ₹ 1,365.03 lakh. The company has demonstrated strong operational performance across its service offerings.

Key performance indicators include:

• Pre-issue EPS of ₹ 12.15, and post-issue EPS of ₹ 10.55 for FY24.
• P/E ratio (pre-issue) of 21.65x, with post-issue P/E standing at 24.92x compared to an industry P/E ratio of 50x.
• ROCE for FY24 is 51.58%, showcasing strong capital efficiency, and the ROE for FY24 is 0.41%.

These financial metrics suggest that the IPO is fairly priced, with solid growth potential driven by the tech services sector.

Utilization of IPO Proceeds
The company intends to use the net proceeds from the IPO for the following purposes:

1. ₹ 1,782.00 Lakh for technical advancement in leading-edge technologies.
2. ₹ 1,500.00 Lakh for increasing spending on business development.
3. ₹ 500.00 Lakh for investment in a subsidiary.
4. Funds will also be allocated for inorganic growth, strategic acquisitions, and general corporate purposes.

Why Invest in the CapitalNumbers Infotech IPO?
CapitalNumbers Infotech is well-positioned for growth in the digital consulting and IT engineering space. The company’s diversified service offerings, including high-demand technologies like AI, cloud engineering, and AR/VR, make it an attractive proposition. The strong subscription numbers and high GMP indicate a positive market outlook for the IPO.

Furthermore, the company's solid financials, consistent growth, and reputation in providing top-notch technological services make it a good investment for those seeking short-term listing gains and long-term growth.

Conclusion

With a strong GMP, impressive subscription figures, and solid financial performance, the CapitalNumbers Infotech IPO offers an attractive opportunity for risk-tolerant investors. The company’s focus on cutting-edge technologies and business expansion makes it a promising player in the rapidly growing IT services and consulting sector. Therefore, we recommend that investors consider subscribing to the CapitalNumbers Infotech IPO for potential listing gains and future growth.

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