NACDAC Infrastructure Limited IPO opens today, December 17, 2024, offering investors a fresh opportunity to invest in a prominent construction company with a strong focus on delivering high-quality infrastructure projects. This IPO has garnered significant attention due to the company's robust financial performance and its contribution to the nation's infrastructure development.

The IPO is a Book Built Issue worth ₹10.01 Crores, comprising a Fresh Issue of 28.60 lakh shares. The price band is set between ₹33 and ₹35 per share, with a lot size of 4,000 shares. Retail investors are required to invest a minimum of ₹1,40,000, while HNIs must invest ₹2,80,000 for two lots. The shares are expected to be listed on the BSE SME platform on December 23, 2024.

Company Overview

NACDAC Infrastructure is helmed by experienced promoters Hemant Sharma and Ashish Saxena, who have extensive expertise in the construction industry. The company’s ethos revolves around the belief that robust infrastructure is pivotal for economic growth and poverty alleviation. With a team of dedicated professionals, NACDAC has established itself as a trusted name in the sector.

Revenue Performance:
The company’s revenue from operations has demonstrated consistent growth, reaching ₹1,376.22 Lakh as of October 31, 2024. Over the past three fiscal years, revenues have increased from ₹1,032.10 Lakh in FY22 to ₹3,633.22 Lakh in FY24. The company's Profit After Tax (PAT) for the same period has also shown significant improvement, standing at ₹160.42 Lakh as of October 31, 2024.

Financial Ratios:
NACDAC Infrastructure’s pre-issue EPS is ₹4.14, and post-issue EPS is ₹3.01. The company’s P/E ratio of 8.45x pre-issue and 11.62x post-issue is competitive compared to the industry P/E of 28x. With a ROCE of 25.88% and RoE of 26.39% for FY24, the company presents an attractive proposition for investors.

Grey Market Premium and Subscription Trends

The Grey Market Premium (GMP) for NACDAC Infrastructure IPO is currently at ₹9, indicating potential listing gains of 25.71%. However, it is important to note that GMP values are unofficial and fluctuate based on demand and supply.

On the first day of subscription (as of 11:00 AM on December 17, 2024), the IPO has been subscribed 8.55 times, reflecting strong interest from retail and institutional investors. The company has also raised ₹2.73 Crores from Anchor Investors at ₹35 per share, allocating 7.80 lakh shares.

Key Dates and Objectives

• Subscription Period: December 17-19, 2024
• Allotment Date: December 20, 2024
• Listing Date: December 23, 2024

The funds raised will primarily be utilized for:

1. Working capital requirements (₹750 Lakh).
2. General corporate purposes.

Recommendation

Given the company’s solid financial performance and potential listing gains, NACDAC Infrastructure IPO is an attractive option for risk-taking investors seeking listing gains. However, investors should exercise caution and consider the inherent risks of investing in SMEs.

The Upcoming IPOs in this week and coming weeks are Identical Brain Studios, Transrail Lighting, Mamata Machinery, DAM Capital  Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO is NACDAC Infrastructure, International Gemmological and Hamps Bio.

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