Nukleus Office Solutions, a key player in the Delhi NCR co-working space market, is all set to launch its IPO in 2025, aimed at raising ₹31.70 crores. The company, founded in 2019, provides flexible and managed office spaces including dedicated desks, private cabins, meeting rooms, and virtual offices. Nukleus Office Solutions operates across 7 centers and manages 4 offices with a combined seating capacity of 2,796 seats as of December 31, 2024. The company's service offerings cater to a wide spectrum of clients, from startups and SMEs to large enterprises.

The IPO, which opens on February 24, 2025, and closes on February 27, 2025, offers a fixed price issue of ₹234 per share with a fresh issue of 13.55 lakh shares. The market capitalization of Nukleus Office Solutions at the issue price will be ₹94.35 crores, and the lot size is set at 600 shares. Retail investors need to invest a minimum of ₹1,40,400, while High-Net-Worth Individuals (HNIs) are required to purchase 2 lots (1,200 shares), which amounts to ₹2,80,800.

Key Financial Performance:

The company has shown impressive growth in its financial performance. For the period ended December 31, 2024, Nukleus reported revenues of ₹2,135.66 lakh, which is a significant increase from ₹1,716.41 lakh in 2023. Over the years, the company has continued to improve its EBITDA, which reached ₹529.99 lakh in FY24. The Profit after Tax (PAT) was ₹151.13 lakh, reflecting a steady growth trajectory. The company’s growth is evident in its expanding operational footprint, with 7 flexible workspace centers and 4 managed office locations.

IPO Subscription and Market Performance:

As of February 24, 2025, the IPO has been subscribed 0.19 times on the first day of the subscription period, which shows limited investor demand so far. The Grey Market Premium (GMP) of the IPO is currently at ₹0, indicating a lack of significant interest in the unorganized market. The listing date is set for March 4, 2025, and the allotment will be finalized on February 28, 2025. These details suggest that the IPO may not generate immediate listing gains.

IPO Objectives:

Nukleus Office Solutions intends to utilize the funds raised through this IPO for the following objectives:

1. ₹2,296.24 lakh for capital expenditure and security deposits for establishing new office centers.
2. ₹34.22 lakh for building its technology platform and enhancing the online client interaction and mobile application.
3. ₹49.56 lakh for advertisement expenses aimed at enhancing the visibility of its brand.
4. ₹588.02 lakh for general corporate purposes to support ongoing business operations.

Investment Consideration:

Based on the financials, pre-issue EPS stands at ₹19.71, while the post-issue EPS will be ₹2.97 for FY24. The pre-issue P/E ratio is 11.87x, and the post-issue P/E ratio jumps to 78.81x, indicating that the IPO is priced high. With a Return on Capital Employed (ROCE) of 14.39% and a Return on Equity (ROE) of 46.09%, Nukleus has a strong financial position, but the IPO valuation is steep compared to its past performance.

Despite the solid financials, the Grey Market Premium suggests limited investor optimism, and the company’s valuation might not provide substantial listing gains. Therefore, potential investors are advised to approach the Nukleus Office Solutions IPO cautiously, especially for those seeking quick returns or long-term investments.

Conclusion:

The Nukleus Office Solutions IPO offers insight into a growing co-working space provider in the Delhi NCR region, which is known for its flexible office solutions. However, due to the current valuation and limited Grey Market Premium, this IPO may not be the best opportunity for those seeking immediate gains. Long-term investors might consider participating, but should carefully weigh the market dynamics and company performance before making any decisions.

The Upcoming IPOs in this week and coming weeks are Shreenath Paper, Balaji Phosphates.

The Current active IPO are Nukleus Office, Beezaasan Explotech, Swasth Foodtech, HP Telecom India.

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