Nukleus Office Solutions has launched its IPO with a fixed price of ₹234 per equity share, amounting to ₹31.70 crores. The IPO consists of 13.55 lakh shares, offered in an entirely Fresh Issue. Investors can apply for a minimum of 600 shares (₹1,40,400) per retail investor. High-Net-Worth Individuals (HNIs) must apply for a minimum of 2 lots, totaling 1,200 shares (₹2,80,800). The subscription period for the IPO will run from February 24 to February 27, 2025, with the allotment date scheduled for February 28, 2025. The shares will be listed on BSE SME on March 4, 2025.

Company Overview

Nukleus Office Solutions is a prominent provider of co-working spaces and managed office solutions in the Delhi NCR region. Offering a wide range of flexible office setups, such as dedicated desks, private cabins, meeting rooms, startup zones, virtual offices, and enterprise workspaces, the company caters to startups, SMEs, large enterprises, and professionals. As of December 31, 2024, Nukleus operates 7 flexible workspace centers and manages 4 Managed Offices with a total seating capacity of 2,796.

IPO Subscription and Allotment Details

The IPO subscription for Nukleus Office Solutions will conclude on February 27, 2025, with the allotment to be finalized on February 28, 2025. Investors can check the allotment status on the registrar’s website Bigshare Services Private Limited. The IPO lot size is 600 shares, with the minimum investment requirement for retail investors being ₹1,40,400.

As of 7:00 PM on February 27, 2025, the IPO had been subscribed 1.00 times on its final day of subscription. Investors can track the live subscription status on the BSE website.

Grey Market Premium (GMP) and Market Sentiment

The Grey Market Premium (GMP) for Nukleus Office Solutions IPO is ₹0, indicating no significant pre-listing gains are expected. The GMP reflects the unorganized trading of shares before listing and does not guarantee future price movements. Investors should note that GMP trends cannot be used to predict listing outcomes reliably and should be considered for educational purposes only.

Financial Overview and Key Metrics

Nukleus Office Solutions has shown impressive financial growth since its inception in 2019. For the period ending December 31, 2024, the company’s revenue from operations stood at ₹2,135.66 lakh, reflecting a strong increase from ₹1,716.41 lakh in 2023 and ₹1,089.76 lakh in 2022. The company’s EBITDA also grew from ₹140.23 lakh in FY22 to ₹529.99 lakh in FY24, while its Profit After Tax (PAT) rose from ₹10.64 lakh in FY22 to ₹151.13 lakh in FY24.

Key financial metrics include:

• Pre-issue Earnings Per Share (EPS): ₹19.71
• Post-issue EPS: ₹2.97
• Pre-issue P/E Ratio: 11.87x
• Post-issue P/E Ratio: 78.81x

Valuation and Investment Considerations

The company’s Return on Capital Employed (ROCE) for FY24 stands at 14.39%, with a Return on Equity (ROE) and Return on Net Worth (RoNW) both at 46.09%. Based on the company’s financial performance and the IPO price, the P/E ratio suggests the IPO is fully priced.

The IPO proceeds will be used for:

• Capital expenditure for new center establishment (₹2,296.24 lakh)
• Technology platform development (₹34.22 lakh)
• Brand visibility and advertising (₹49.56 lakh)
• General corporate purposes (₹588.02 lakh)

IPO Review: Should You Invest?

Given the financial stability and steady growth shown by Nukleus Office Solutions, the IPO presents an attractive option for long-term investors. However, with the Grey Market Premium (GMP) at ₹0 and the high post-issue P/E ratio, the IPO is fully priced, and listing gains may be limited. For short-term investors seeking quick returns, the IPO may not offer significant gains at the time of listing.

Conclusion

Nukleus Office Solutions IPO provides an opportunity to invest in a growing co-working space provider in the Delhi NCR region. However, with no Grey Market Premium (GMP) and a high post-issue P/E ratio, the IPO is considered fully priced. Investors are advised to carefully evaluate their investment horizon and consider the IPO for long-term growth potential rather than short-term listing gains.

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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