Nukleus Office Solutions IPO is a Fixed Price Issue offering a total of ₹ 31.70 Crores through the issuance of 13.55 Lakh shares at a price of ₹ 234 per equity share. The subscription period for this IPO started on February 24, 2025, and will close on February 27, 2025. The IPO allotment is expected to be finalized by February 28, 2025, with shares to be listed on BSE SME on or about March 4, 2025. The lot size for retail investors is 600 shares, requiring a minimum investment of ₹ 1,40,400, while HNIs need to invest for at least two lots (1,200 shares), totaling ₹ 2,80,800.

Company Overview

Nukleus Office Solutions is a prominent provider of co-working and managed office spaces in the Delhi NCR region, offering flexible workspaces for startups, SMEs, and large enterprises. The company provides a variety of office solutions, including dedicated desks, private cabins, meeting rooms, startup zones, virtual offices, and enterprise workspaces for teams ranging from 50 to 500 seats. As of December 31, 2024, Nukleus operates 7 flexible workspace centers and manages 4 managed office locations, with a total seating capacity of 2,796.

IPO Details and Objectives

The IPO proceeds will be allocated towards several key objectives:

1. ₹ 2,296.24 Lakhs for capital expenditure and security deposit for establishing new centers.
2. ₹ 34.22 Lakhs for technology platform development, integrating centers, online client interactions, and a mobile application.
3. ₹ 49.56 Lakhs for advertising to enhance brand visibility.
4. ₹ 588.02 Lakhs for general corporate purposes, supporting overall growth strategies.

Financial Performance and Metrics

As of the year ending December 31, 2024, the company reported revenues of ₹ 2,135.66 Lakh, a significant increase from previous years: ₹ 1,716.41 Lakh in 2023, ₹ 1,089.76 Lakh in 2022, and ₹ 342.42 Lakh in 2021. The EBITDA for 2024 stood at ₹ 529.99 Lakh, reflecting a steady upward trend from ₹ 327.53 Lakh in 2023. The Profit After Tax (PAT) for the year was ₹ 151.13 Lakh, up from ₹ 119.72 Lakh in 2023.

The pre-issue Earnings Per Share (EPS) for the fiscal year 2024 is ₹ 19.71, with a projected post-issue EPS of ₹ 2.97. The pre-issue P/E ratio is 11.87x, and the post-issue P/E ratio jumps to 78.81x, indicating a relatively high valuation for the company. Despite steady growth, the company's Return on Capital Employed (ROCE) for FY24 is 14.39%, and Return on Equity (ROE) is 46.09%.

Grey Market Premium and Subscription Status

As of February 27, 2025, the Grey Market Premium (GMP) for the Nukleus Office Solutions IPO stands at ₹ 0, indicating no active trading or expected listing gains in the grey market. GMP is often seen as a short-term indicator, but its reliability is limited and dependent on demand and supply in the unorganized market.

The live subscription status for the IPO shows it has been subscribed 1.00 times as of February 27, 2025, indicating moderate interest. The subscription data reflects demand across retail and institutional investors but with no oversubscription, signaling a balanced market reception.

IPO Review and Recommendation

Despite steady financial growth, the high P/E ratio suggests that the Nukleus Office Solutions IPO may be fully priced, making it less attractive for short-term listing gains. Furthermore, the zero GMP indicates a lack of strong investor enthusiasm ahead of listing.

Recommendation: Given the financials and the IPO valuation, investors should exercise caution. The Nukleus Office Solutions IPO may not offer substantial listing gains, and the long-term prospects require further analysis. Therefore, we recommend avoiding this IPO if you're seeking short-term profits and suggest a wait-and-watch approach for those interested in long-term investment.

The Upcoming IPOs in this week and coming weeks are  NAPS Global.

The Current active IPO are Balaji Phosphates, Shreenath Paper.

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