Nukleus Office Solutions Limited, a leading provider of co-working spaces and managed office solutions in the Delhi NCR region, is all set to launch its Initial Public Offering (IPO) in 2025. The company, which has seen remarkable growth in recent years, will offer a Fixed Price Issue amounting to ₹31.70 crores, with a total of 13.55 lakh fresh equity shares being offered to the public. The IPO subscription period begins on February 24, 2025, and will close on February 27, 2025. The company has set the issue price at ₹234 per equity share, which positions the total market capitalization at ₹94.35 crores at the issue price.

IPO Subscription Details: The subscription period for the Nukleus Office Solutions IPO is February 24 to February 27, 2025, and investors can subscribe to the shares during this window. The IPO has a lot size of 600 shares, meaning retail investors need to invest a minimum of ₹1,40,400. For High-Net-Worth Individuals (HNIs), the minimum subscription requirement is 1,200 shares, which amounts to ₹2,80,800. As per the company’s IPO allotment schedule, the final list will be declared on February 28, 2025, and the shares will be listed on the BSE SME platform with a tentative listing date set for March 4, 2025.

Grey Market Premium (GMP) and Market Sentiment: As of now, the Grey Market Premium (GMP) for the Nukleus Office Solutions IPO stands at ₹0, indicating no immediate price premium. However, the GMP is entirely based on demand and supply in the unorganized market and doesn’t provide an accurate reflection of the listing price. As market sentiment may fluctuate, it is essential to consider the company’s financial performance and valuation when deciding whether to invest.

Nukleus Office Solutions Financial Overview: Nukleus Office Solutions has demonstrated steady growth in revenues, with reported revenues from operations amounting to ₹2,135.66 lakh for the period ending on December 31, 2024. The company’s EBITDA has also seen a significant rise, reaching ₹529.99 lakh for the same period. Their Profit After Tax (PAT) for FY2024 was ₹151.13 lakh, reflecting the company’s consistent profitability.

IPO Objectives and Utilization of Proceeds: The net proceeds from the IPO will be used for several key purposes:

1. ₹2,296.24 lakh for capital expenditure and security deposits to establish new centers.
2. ₹34.22 lakh for enhancing the company’s technology platform, including the integration of its centers and improving online client interaction through a mobile application.
3. ₹49.56 lakh for advertising expenses aimed at increasing brand visibility.
4. ₹588.02 lakh will be allocated for general corporate purposes, ensuring smooth business operations and growth.

Management and Leadership: The company is led by Nipun Gupta (48), who holds over 26 years of experience in various sectors including real estate, finance, infrastructure, and technology. He is recognized as the Youngest Entrepreneur from India by the Government of UAE. Alongside him is Puja Gupta (46), who has 20 years of experience and oversees the backend operations of the company.

Performance Indicators and Valuation: Nukleus Office Solutions boasts a pre-issue Earnings Per Share (EPS) of ₹19.71 and a post-issue EPS of ₹2.97. The price-to-earnings (P/E) ratio pre-issue is 11.87x, which increases to 78.81x post-issue. While the Return on Capital Employed (ROCE) for FY24 is 14.39%, and the Return on Equity (ROE) stands at a strong 46.09%, these figures suggest that the IPO is fully priced in terms of valuation. Despite the steady growth, potential investors should exercise caution, especially since the Grey Market Premium is currently at ₹0, signaling limited short-term upside.

Recommendation for Investors: Considering the financial performance, valuation metrics, and the market conditions, it is recommended that investors avoid subscribing to the Nukleus Office Solutions IPO for short-term listing gains or long-term investment purposes. With the lack of immediate market demand, the IPO might not generate significant returns in the short term. Therefore, it may be more prudent for investors to assess other investment options before committing their funds to this particular offering.

In conclusion, the Nukleus Office Solutions IPO offers an opportunity for investors to participate in a growing business that provides flexible workspaces in the Delhi NCR region, but potential investors must thoroughly evaluate the risks and rewards before making any investment decisions.

The Upcoming IPOs in this week and coming weeks are Beezaasan Explotech, Nukleus Office.

The Current active IPO are Swasth Foodtech, HP Telecom India.

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