NACDAC Infrastructure Limited is set to launch its Initial Public Offering (IPO) on December 17, 2024, aiming to raise ₹10.01 crore through a fresh issue of 28.6 lakh shares. The IPO is categorized under the SME segment and offers an attractive opportunity for investors in the construction and infrastructure sector.

• Issue Size: ₹10.01 crore
• Price Band: ₹33 to ₹35 per share
• Lot Size:
  • Retail Investors: 4,000 shares (₹140,000 minimum investment)
  • HNI Investors: Minimum 2 lots (₹280,000)
• Book Running Lead Manager (BRLM): GYR Capital Advisors Private Limited
• Registrar: Maashitla Securities Private Limited
• Market Maker: Giriraj Stock Broking
• Listing: Shares will list on BSE SME on December 24, 2024 (tentative).

Company Overview

NACDAC Infrastructure Limited, incorporated in 2012, specializes in the construction of multi-story buildings, residential, commercial, and institutional structures. The company is a Class A contractor registered with Uttarakhand Peyjal Sansadhan Vikas Evum Nirman Nigam and is also ISO-certified, ensuring high standards in construction and project execution.

• Core Expertise:

  • Civil and structural construction, including multi-story buildings.
  • Steel structure works, housekeeping, and manpower supply.
  • Construction of bridges, including FOBs (Foot Over Bridges) and ROBs (Road Over Bridges).
  • Electrical works (Low-Tension and High-Tension).

• Client Base:
  The company works with government agencies, including the Government of India and Uttarakhand, as well as private organizations. It also undertakes sub-contracts for infrastructure and construction projects.

• Project Completion:
  As of March 31, 2024, NACDAC Infrastructure has successfully completed 45 projects and employs 27 skilled staff.

Competitive Strengths

1. Proven Track Record: Demonstrated capability in executing civil projects efficiently, with a focus on quality and timely delivery.
2. Experienced Management: Led by experienced promoters and a skilled team, the company has built a strong reputation in the infrastructure sector.
3. Diverse Service Offerings: A wide range of services across civil, structural, and electrical domains, catering to various industries.
4. Strong Client Relationships: Long-term associations with government and private clients, ensuring a steady pipeline of projects.

IPO Timeline

• Subscription Period: December 17, 2024 – December 19, 2024
• Allotment Date: December 20, 2024
• Listing Date: December 24, 2024

Market Opportunity

The construction sector in India is experiencing robust growth, driven by government infrastructure initiatives and private investments. With expertise in both civil and structural construction, NACDAC Infrastructure is well-positioned to capitalize on this trend.

Investment Considerations

Strengths:

• Strong execution capabilities, supported by a skilled workforce.
• Steady revenue stream from government and private projects.
• Diversified service portfolio catering to various infrastructure needs.

Risks:

• Dependency on government contracts, exposing the company to regulatory and policy risks.
• Small employee base, which may limit the ability to scale operations quickly.

Conclusion

The NACDAC Infrastructure IPO provides a compelling opportunity for investors looking to participate in the growing infrastructure sector. With a proven track record, experienced management, and strong client relationships, the company is poised for sustainable growth.

Retail investors should consider the minimum investment requirement (₹140,000) and evaluate the company’s fundamentals and sector potential before subscribing. The IPO's SME listing on BSE offers a chance for early-stage participation in a niche construction-focused company.