NACDAC Infrastructure Limited, a renowned construction company, is set to launch its IPO starting on December 17, 2024. This fresh issue consists of 12.20 lakh shares amounting to ₹6.22 crores. The subscription period for the IPO will run until December 19, 2024. Investors should be aware that the IPO will be listed on the BSE SME platform, with the tentative listing date expected on December 23, 2024.

IPO Price Band and Investment Details

The price band for the NACDAC Infrastructure IPO is set between ₹33 and ₹35 per equity share. The market capitalization of NACDAC Infrastructure at the IPO price of ₹35 per share is estimated at ₹36.83 crores. The lot size is 4,000 shares, and the minimum investment for retail investors is ₹1,40,000. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,80,000, which covers two lots (8,000 shares).

Grey Market Premium (GMP) and Market Potential

The Grey Market Premium for the NACDAC Infrastructure IPO currently stands at ₹9, suggesting a potential listing gain of approximately 25.71%. It’s important to note that while the GMP offers an unofficial sense of market demand, real trading occurs only once the shares are officially listed. Therefore, relying solely on GMP data for investment decisions can be risky. The GMP reflects the market sentiment and demand for shares in an unregulated market, making it an educational reference rather than an absolute indicator.

NACDAC Infrastructure IPO Allotment Process

The IPO allotment will be finalized on December 20, 2024, and investors can check their allotment status online through the registrar’s website. The process is simple:

• Visit the IPO allotment status page.
• Select NACDAC Infrastructure IPO from the list of IPOs.
• Enter your application number, PAN, or DP Client ID.
• Submit to see your allotment status.

This tool helps investors track their IPO allotment quickly and accurately.

Company Overview and Financials

NACDAC Infrastructure is led by Hemant Sharma and Ashish Saxena, both seasoned professionals with extensive experience in the infrastructure construction industry. The company has seen impressive revenue growth over the years, with the Revenues from Operations for the fiscal year 2024 touching ₹1,376.22 lakh. The company's EBITDA for the same period stood at ₹293.73 lakh, with a Profit after Tax (PAT) of ₹160.42 lakh. This performance highlights NACDAC Infrastructure’s strong position in the sector and its commitment to quality infrastructure development.

NACDAC Infrastructure IPO Valuation

The IPO is priced at a pre-issue P/E ratio of 8.45x, and a post-issue P/E ratio of 11.62x, which is lower than the industry P/E of 28x, indicating that the IPO is reasonably priced compared to competitors. The company’s Return on Capital Employed (ROCE) for FY24 is 25.88%, and Return on Equity (RoE) stands at 26.39%, showcasing its strong profitability and efficient use of capital.

Use of Proceeds

The proceeds from the fresh issue will be used for working capital requirements and general corporate purposes. Specifically, ₹7.5 crores will be allocated to enhancing the company’s working capital.

IPO Review and Investment Recommendation

Based on the financial performance and the current Grey Market Premium, the NACDAC Infrastructure IPO is expected to offer good returns, especially for risk-tolerant investors looking for listing gains. The company's healthy financials and attractive valuation make it a promising investment, though investors should proceed cautiously due to market uncertainties.

The Upcoming IPOs in this week and coming weeks are NACDAC Infrastructure, Transrail Lighting, Mamata Machinery, Identical Brain Studios, Rosmerta Digital, Indo Farm, DAM Capital and Avanse Financial.

The Current active IPO is and International Gemmological, Hamps Bio, Yash Highvoltage and Inventurus Knowledge.

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