The IPO market is abuzz with excitement, especially with the recent entry of Capital Numbers Infotech into the public domain. Scheduled to open for subscription on January 20 and close on January 22, 2025, this IPO is making waves as the largest SME offering of the year. With a target to raise ₹169.37 crore, Capital Numbers has set its share price between ₹250 and ₹263, making it an attractive proposition for investors looking to get in early.
Understanding the Demand: A Closer Look at Subscription Rates
By the end of Day 2, the IPO has been booked at a very high level of 6.38 times till 1 PM and is evidence that the market was quite interested. The retail investor portion was subscribed to 8.04 times. It reflects the investors’ confidence in this Capital Numbers, as it has found its niche successfully in the sphere of software development solutions all around the world. Such demand gives a promising lead for potential investors into its perceived value of the company in the market.
Grey Market Dynamics: What They Say
In addition to the subscription numbers, the grey market is also providing some sense of Capital Numbers’ performance. Shares are trading at a premium of ₹140, suggesting an estimated listing price of around ₹403—53% higher than the upper limit of the IPO price. While grey market rates can fluctuate, they often serve as a good barometer for investor sentiment. These dynamics, then, will be important to know for investors to estimate the prospects of returns in the initial days of its listing.
Financial Health: The Bottom-Line Story
CapitalNumbers Infotech, headquartered in West Bengal, has shown a tremendous increase in financial turnover. The net profit for the fiscal year 2024 is ₹26 crore, up by a whopping 50% from what it was last fiscal. With revenues climbing to ₹98.2 crore, up 6% from ₹92.6 crore, the financial graph of the company seems promising and stable in the future. The first half of the current financial year too has been good with profits at ₹13.67 crore and revenues at ₹50.2 crore.
Strategic use of IPO Proceeds
Investors should also note the details with which CapitalNumbers will use the funds from the IPO. The company intends to invest in state-of-the-art technology, intensify business development, and provide support to its subsidiary. Moreover, the proceeds will help inorganic growth through acquisitions and other strategic plans. This long-term focus on the channelization of capital will thus add to investor trust and guide future growth.
Who Should Consider Investing?
The entry barrier for retail investors is set at a minimum investment of ₹1.05 lakh for a lot size of 400 shares. With strong subscription rates and positive market sentiment, this IPO may be a good opportunity for portfolio diversification. As with any investment, it is important to do proper research and consider one’s financial goals and risk tolerance.
Conclusion: The Road Ahead
In conclusion, this is a quite attractive opportunity from the IPO offered by Capital Numbers Infotech for investors. Since there is huge demand, good financials, and a smart plan for how the proceeds from the issue would be used, this company is more likely to witness growth. This is the best time for investors because the final allotment is scheduled to take place on January 23 and the issue will be listed on January 27. Watch for this promising trend as the IPO landscape continues to change.
