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NACDAC Infrastructure IPO subscribed 674.18 times on Day 3. Check GMP and other details
Team Finance Saathi
19/Dec/2024
What's covered under the Article:
- NACDAC Infrastructure IPO opens with a price band of ₹33 to ₹35 per share and a market cap of ₹36.83 Crores.
- Subscription status shows significant interest, with IPO over-subscribed by 674.18 times.
- Grey Market Premium (GMP) points to potential listing gains of 89.26%.
NACDAC Infrastructure Limited, a leading construction company committed to developing the country’s infrastructure, has launched its IPO with promising financial metrics and investor interest. The IPO opened on December 17, 2024, and will close on December 19, 2024. The company aims to raise ₹10.01 Crores through the issue of 28.60 Lakh shares, with a price band set between ₹33 and ₹35 per share.
The subscription period has seen robust demand, and as of December 18, 2024, the IPO is 674.18 times subscribed on its final day, signaling high investor interest. This could be indicative of strong demand in the secondary market once the shares are listed on the BSE SME on December 23, 2024.
Investment Insights and Key Metrics
The company's market capitalization at the upper price band of ₹35 per share will be approximately ₹36.83 Crores. Investors are required to apply for a minimum of 4,000 shares, equating to ₹1,40,000 for retail investors and ₹2,80,000 for High-Net-Worth Individuals. This suggests a targeted focus on HNI and retail investors to drive the IPO’s success.
The Grey Market Premium (GMP) for NACDAC Infrastructure IPO has seen significant growth, standing at ₹31 (89.26%) as of December 16, 2024, reflecting positive investor sentiment towards the upcoming listing. Although GMPs are not reliable for accurate price discovery, the strong premium is encouraging for those looking for listing gains.
The financial performance of NACDAC Infrastructure has been stable, with revenues increasing from ₹1,032.10 Lakh in FY 2022 to ₹3,633.22 Lakh in FY 2023. Despite fluctuations in profits, the company’s EBITDA margin has improved, showcasing operational efficiency. The pre-issue P/E ratio stands at 8.45x, well below the industry average of 28x, making it an attractive proposition for investors looking for value.
IPO Objectives and Use of Proceeds
The proceeds from the Fresh Issue will primarily be used for working capital needs, with ₹750.00 Lakh allocated for this purpose. Additional funds will be directed towards general corporate purposes, including strengthening the company’s financial position for future growth.
Anchor Investors and Market Maker
NACDAC Infrastructure has successfully raised ₹2.73 Crores from Anchor Investors, securing confidence from key institutional investors ahead of the IPO. The market maker for the IPO is Giriraj Stock Broking Private Limited, who will ensure liquidity and smooth trading of shares post-listing.
The Upcoming IPOs in this week and coming weeks are Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse Financial.
The Current active IPO is Transrail Lighting, Mamata Machinery, DAM Capital Sanathan Textiles, Concord Enviro, Newmalayan Steel, Identical Brain Studios and NACDAC Infrastructure.