NACDAC Infrastructure IPO: A Step Toward Building Nation's Infrastructure

NACDAC Infrastructure Limited, a prominent construction company, is embarking on a major public offering with a total issue size of ₹10.01 Crores, aimed at strengthening the nation's infrastructure. With an emphasis on economic growth and poverty reduction, NACDAC's dedication to quality makes it an exciting proposition for investors. The IPO opens on December 17, 2024, and closes on December 19, 2024, offering a price band of ₹33 to ₹35 per share. The lot size is 4,000 shares, with a retail investment minimum of ₹1,40,000.

The IPO proceeds will be primarily directed towards working capital requirements and general corporate purposes, reinforcing NACDAC's ability to scale operations efficiently. The company's Market Capitalization at ₹35 per share will be ₹36.83 Crores, reflecting its growing presence in the infrastructure sector.

IPO Subscription Status & Grey Market Premium Trends

As of December 18, 2024, the NACDAC Infrastructure IPO has been subscribed 161.11 times, a clear indicator of robust investor interest. The Grey Market Premium (GMP) currently stands at ₹31, suggesting a potential listing gain of 89.26%, signaling strong demand even before the shares are listed.

The GMP is an unofficial trading figure, and although it cannot provide a concrete indication of the listing price, it suggests an optimistic view for investors seeking to capitalize on market demand. This premium, based on supply and demand, may shift until the final listing on December 23, 2024 on the BSE SME.

Company Overview and Financial Performance

Led by experienced promoters Hemant Sharma and Ashish Saxena, NACDAC Infrastructure has been consistently expanding its footprint in the construction sector. The company’s revenue growth is noteworthy, with a fiscal 2024 revenue of ₹1,376.22 Lakh, an improvement from ₹1,173.92 Lakh in FY 2022. Furthermore, the company demonstrated a Profit After Tax (PAT) of ₹160.42 Lakh for the period ending October 31, 2024.

In terms of valuation, the company has a pre-issue P/E ratio of 8.45x and post-issue P/E ratio of 11.62x, significantly lower than the industry average of 28x, making the IPO an attractive option for value-driven investors. The company’s Return on Capital Employed (ROCE) for FY 2024 stands at 25.88%, and its Return on Equity (RoE) is 26.39%, indicating strong profitability and efficiency.

NACDAC IPO Allotment and Final Listing Details

The NACDAC Infrastructure IPO allotment date is set for December 20, 2024, and investors can check the allotment status by visiting the registrar's website and entering their application details. The shares will be listed on the BSE SME segment on December 23, 2024.

Investors are advised to stay updated on the IPO’s subscription progress and to apply early to ensure the best chance of allotment. The IPO is fully priced, with substantial potential for listing gains, driven by the company’s strong market fundamentals and investor interest.

Why You Should Consider Applying

The NACDAC Infrastructure IPO offers a great opportunity to be part of a rapidly expanding company in the growing construction sector. With strong financial metrics, attractive Grey Market Premium, and a lower P/E ratio compared to industry peers, this IPO could deliver solid listing gains. Investors seeking long-term growth in India's infrastructure space may find this IPO particularly appealing.

The Upcoming IPOs in this week and coming weeks are 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 Identical Brain Studios and NACDAC Infrastructure.
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