Capacit’e Infraprojects, the company that has bagged the contract to build the Trump Tower in the city, created history of sorts on Friday in the stock market. The company’s Rs 400 cr initial public offer (IPO) was subscribed 186 times, translating into a demand worth about Rs 52,000 cr. This makes it the most subscribed issue in India in the last 17 years.
The Capacit’e IPO also created another record. The portion set aside for high net worth individuals (HNIs) was subscribed over 650 times, making it the most subscribed such issue ever in the country. The previous record was a subscription figure of 560 times in the Rs 523 cr IPO for CDSL. The retail part in the IPO was subscribed 16 times, official data showed.
Sankhya Infotech’s Rs 1.67 cr IPO still remains the most subscribed maiden offer ever at 284 times. The Bhubaneswar-based company, in which disgraced big bull Ketan Parekh had a stake at the time of the IPO, had gone public in March 2000. According to merchant bankers, with the real estate sector showing continuing weakness, investors are preferring to play the sector through proxies. “People are playing the real estate sector via the ancillary space,” said Axis Capital MD Dharmesh Mehta. Axis Cap is the lead merchant banker for the issue. “The company’s track record for executing projects and a reasonable valuation also attracted investors,” Mehta added.
In addition to the Trump Tower - a real estate project having the approval and signature of US President Donald Trump, Capacit’e is currently executing a project by Lodha Developers on Altamount Road in south Mumbai, the Bhendi Bazaar redevelopment project also in south Mumbai, two projects by Godrej Properties (one each in Delhi and Mumbai) and one by Brigade Group in Chennai.