Capital Infra Trust InvIT is set to launch its initial public offering (IPO) from January 7 to January 9, 2025, aiming to raise approximately ₹1,578 crores. This IPO will consist of a fresh issue of around ₹1,077 crores and an offer for sale of ₹501 crores by existing unitholders. As the first infrastructure investment trust (InvIT) of the new year, Capital Infra Trust focuses on acquiring and managing completed revenue-generating assets, primarily in the road construction sector.
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Expert Opinions
Market sentiment for the Capital Infra Trust InvIT IPO is largely positive, driven by increasing investor interest in infrastructure assets amid government initiatives to bolster the sector. Company strengths include its backing by Gawar Construction, a well-established player with a proven track record of over 100 road projects, positioning the trust favorably within the infrastructure landscape. However, risks and challenges involve potential fluctuations in government spending on infrastructure and competition from other investment trusts that could impact revenue generation.
Valuation analysis indicates a revenue decline for the trust, dropping to ₹1,543.51 crores in FY2024 from ₹2,518.92 crores in FY2023, raising concerns about its operational efficiency and the impact of market conditions on performance. From a long-term investment perspective, Capital Infra Trust is well-positioned to benefit from ongoing infrastructure development trends in India, making it an attractive option for investors seeking exposure to this growing sector.
Investor Considerations
Company performance and fundamentals indicate a decline in revenue, with ₹1,543.51 crores reported for FY2024, down from ₹2,518.92 crores in FY2023, alongside a profit drop to ₹125.77 crores, highlighting operational challenges. The sector outlook remains optimistic, driven by government investments in infrastructure development, which is expected to enhance demand for the trust’s assets.
IPO valuation depends on projected EPS for P/E ratio comparison, while RoNW highlights the trust’s profit generation ability, boosting investor confidence. Growth prospects are supported by plans to acquire additional revenue-generating assets and expand the existing portfolio of completed projects. However, potential risk factors include reliance on government contracts and economic fluctuations that could impact revenue streams. A long-term investment horizon is advisable as the trust aims to leverage infrastructure growth while navigating inherent market challenges effectively.
| Date | GMP | Trend |
|---|---|---|
| 16 Jan 2025 11.06 | ₹00 | --- |
| 15 Jan 2025 10.51 | ₹00 | --- |
| 13 Jan 2025 11.24 | ₹00 | --- |
| 12 Jan 2025 16.31 | ₹00 | --- |
| 11 Jan 2025 12.33 | ₹00 | --- |
| 10 Jan 2025 11.04 | ₹00 | --- |
| 09 Jan 2025 11.02 | ₹00 | --- |
| 08 Jan 2025 10.57 | ₹00 | --- |
| 07 Jan 2025 10.41 | ₹00 | --- |
| 06 Jan 2025 10.51 | ₹00 | --- |
| 05 Jan 2025 10.04 | ₹00 | --- |
| 04 Jan 2025 11.44 | ₹00 | --- |
| 03 Jan 2025 10.54 | ₹00 | --- |
| 02 Jan 2025 10.38 | ₹00 | --- |
| 01 Jan 2025 17.22 | ₹00 | --- |
FAQs
The Grey Market Premium showed strong accuracy in predicting Capital Infra Trust’s listing performance. The GMP of ₹0 suggested a flat listing at the issue price, and the stock listed with only a minimal discount of 1%. With a small prediction error of 1%, the GMP effectively captured the weak market sentiment and accurately predicted the near-flat listing, demonstrating good reliability as an indicator in this case.
Capital Infra Trust InvIT IPO Current GMP is ₹00.
Capital Infra Trust InvIT IPO Expected Returns is 0.00%.
Capital Infra Trust InvIT IPO estimated listing price is ₹100.