As the stock market braces for a new wave of investment opportunities, one of the most anticipated IPOs in recent times is the upcoming listing of NACDAC Infrastructure. With a strong reputation in the infrastructure sector and an impressive portfolio of completed and ongoing projects, NACDAC is ready to open its doors to public investors.
This IPO presents a unique opportunity to invest in a company poised for substantial growth, as the demand for infrastructure development continues to surge. As the company prepares to hit the stock market, the IPO promises not only potential financial gains but also the chance to be a part of nation-building efforts that impact sectors ranging from transportation and utilities to urban development.
In this article, we will explore the key aspects of the NACDAC Infrastructure IPO, its potential, and what makes it an exciting investment opportunity for both seasoned and new investors.
Table of Contents
NACDAC Infrastructure IPO Details
NACDAC Infrastructure IPO is a book-built issue of ₹10.01 crore and it’s entirely a fresh issue, which means the proceeds from the issue will go to the company to strengthen it.
NACDAC Infrastructure’s ₹10.01 crore IPO opens for subscription on Tuesday, December 17, 2024 and will close on Thursday, December 19, 2024. The allotment for the NACDAC Infrastructure IPO is expected to be finalized on Friday, December 20, 2024 and the company will be listed on BSE SME with a tentative listing date on the stock exchanges set for Tuesday, December 24, 2024. The price band for the NACDAC Infrastructure IPO has been fixed at ₹33 to 35 per share.
| IPO Name | NACDAC Infrastructure Limited |
| IPO Open Date | 17 December 2024 |
| IPO Close Date | 19 December 2024 |
| Price Band | ₹33 to 35 per share |
| Lot Size | 4,000 shares |
| Face Value | ₹10 per share |
| Total-Issue Size | 28,60,000 shares (aggregating up to ₹10.01 Cr) |
| Fresh Issue | 28,60,000 shares (aggregating up to ₹10.01 Cr) |
| Share Allotment Date | 20 December 2024 |
| Initiation of Refund | 23 December 2024 |
| Demat Transfer | 23 December 2024 |
| Listing Date | 24 December 2024 |
| UPI Cut Off Time | 19 December 2024 – 5 P.M. |
| Listing Exchange Name | BSE SME |
| Lead Manager(s) of Issue | GYR Capital Advisors Private Limited |
| Registrar of Issue | Maashitla Securities Private Limited |
| Market Maker Portion | 2,20,000 shares Giriraj Stock Broking Private Limited |
For detailed information, you can refer to NACDAC Infrastructure IPO RHP.
NACDAC Infrastructure IPO GMP
Ahead of the opening, the IPO has been getting a good response in the unlisted market where the issue is currently commanding a premium of about 60% in the grey market, with the latest GMP standing at ₹21 today.
Check IPO Live GMP: View now for Real-Time Updates
NACDAC Infrastructure IPO Lot Size
NACDAC Infrastructure Limited company has issued 28,60,000 shares worth ₹10.01 Cr for the fresh issue. The minimum lot size for an application is 1 lot (4,000 shares). The minimum amount of investment required by retail investors is ₹1,40,000.
The minimum lot size for HNI (High Net Worth Individual) is 2 lots (8,000 shares), amounting to ₹2,80,000.
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Min) | 1 | 4,000 | ₹1,40,000 |
| Retail(Max) | 1 | 4,000 | ₹1,40,000 |
| HNI(Min) | 2 | 8,000 | ₹2,80,000 |
NACDAC Infrastructure IPO Reservation Details
Below are the limits for the shares offered in the different investor categories for this IPO:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net Offer |
| Retail Shares Offered | Not less than 35.00% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Offer |
About the Company
That concludes the details of this IPO. Now, let’s shift our focus to explore more about the company’s background, operations, strengths and risks, financial statements, and key highlights.
Incorporated in 2012, NACDAC Infrastructure is a construction company that offers various civil and structural works. The company focuses on building multi-story buildings, steel structures, bridges like Foot Over Bridges (FOBs) and Road Over Bridges (ROBs), and performing electrical works ( both Low & High-Tension).
The company is a Class A contractor registered with Uttarakhand Peyjal Sansadhan Vikas Evam Nirman Nigam (UPSVENN) and holds ISO certifications for quality, environmental, and safety management. In addition to this, the company also undertakes sub-contracting projects and joint ventures from major third-party infrastructure and construction firms for large infrastructure projects.
The company works for both government agencies and private companies and has completed several projects for the Government of India and Uttarakhand. It has completed 63 projects worth ₹96.75 crore, working with government agencies and private corporations.
As of 31 October 2024, NACDAC Infrastructure has been appointed as a civil sub-contractor by Larsen & Toubro for their Delhi Airport project. The total contract value for this project stands at ₹9.19 crore. As of the same date, the company employs 29 personnel on its payroll.
NACDAC Infrastructure has established itself as a trusted brand by completing numerous projects for government agencies and private businesses, particularly in Uttarakhand.
Objectives of NACDAC Infrastructure IPO
The company intends to utilize the proceeds of the issue to meet the following objectives:
- General Corporate Purposes
- Working Capital
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NACDAC Infrastructure Limited Financial Information (Restated)
The company’s revenue grew by 209.49%, while its profit after tax (PAT) surged by 464.38% in the FY24 (April 1, 2023 to March 31, 2024).
| Period Ended | 31 Oct 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 3,022.78 | 2,459.76 | 1,246.09 | 900.80 |
| Revenue | 1,376.22 | 3,633.22 | 1,173.92 | 1,032.10 |
| Profit after tax | 160.42 | 316.90 | 56.15 | 31.55 |
| Net Worth | 1,361.22 | 1,200.80 | 581.20 | 487.77 |
| Reserves & Surplus | 594.71 | 434.29 | 117.05 | 47.19 |
| Total Debt | 811.17 | 643.24 | 9.49 | 189.92 |
| Amt in ₹ Lakhs | ||||
Key Performance Indicators
NACDAC Infrastructure Limited’s current market capitalization is ₹36.84 Cr, and if we talk about the key performance indicators (KPIs) of the company, then the ROCE and PAT Margin (%) as of 31 March 2024 are 25.88% and 8.73% respectively.
| Key Performance Indicators | Value |
| ROE | 35.57% |
| ROCE | 25.88% |
| Debt/Equity | 0.54 |
| RoNW | 26.39% |
| P/BV | 1.87 |
| PAT Margin (%) | 8.73 |
The EPS and PE ratios before and after the NACDAC Infrastructure IPO issue are detailed in the list below:
| Ratios | Pre IPO | Post IPO |
| EPS (Rs.) | 0.73 | 2.45 |
| P/E (x) | 47.78 | 14.28 |
- The Pre IPO EPS is calculated based on pre-issue shareholding as of the date of RHP and the latest FY earnings as of March 31, 2023 that is available in RHP.
- The Post-IPO EPS is calculated based on the post-issue shareholding and annualized FY earnings of January 31, 2024 that are available in RHP.
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NACDAC Infrastructure IPO Review (Apply)
The review of the NACDAC Infrastructure IPO has been done based on the following points:
- Revenue Growth: There has been significant revenue growth over the past three years: ₹1,032.10 lakhs (2022) → ₹1,173.92 lakhs (2023) → ₹3,633.22 lakhs (2024). This reflects steady growth and a strong market presence.
- Profit Growth: The profit after tax (PAT) has increased from ₹31.55 lakhs (2022) to ₹316.90 lakhs (2024). With a PAT margin of 8.73%, the company demonstrates strong profitability, which is impressive for the infrastructure sector.
- Strong Reserves: Reserves have grown from ₹47.19 lakhs (2022) to ₹434.29 lakhs (2024), indicating the company’s ability to reinvest for business expansion.
- Valuation Metrics: Pre-IPO P/E: 47.78 | Post-IPO P/E: 14.28
As per the RHP, the company has shown K2 Infra, Suraj Estate, and SRM Contractors as their listed peers. They are trading at the P/E of 22.7, 28.2, and 30.6 (as of December 15, 2024). However, they are not truly comparable on an apple-to-apple basis. The average P/E ratio for the infrastructure sector is around 37x, so the IPO looks reasonably valued.
- Return on Capital Employed (ROCE) and Return on Net Worth (RoNW):
ROCE: 25.88% reflects the company’s capital efficiency.
RoNW: 26.39% is extremely good for long-term investors.
- GMP and IPO Price Band: With a price band of ₹33-35 and a GMP of ₹21, the market shows a great interest, suggesting a potential listing gain of around 60%.
Strengths
- Long-term client relationships ensuring repeat business and retention.
- Strong work order book showcasing growth and execution capabilities.
- Expertise in executing complex civil projects in challenging terrains.
- Diverse services across construction and infrastructure development.
Risks
Here are some of the risk factors involved in the IPO that investors should know before subscribing to the issue. These risk factors have been highlighted by the company in its Red Herring Prospectus (RHP):
- High Dependence on government contracts: The company relies heavily on the government for contracts which could result in policy and budgetary risks.
- Dependence on subcontractors: High dependence on subcontractors could result in risks related to challenges in entering new agreements, construction delays, and quality issues.
- Regulatory investigations may lead to penalties or disruptions: The company, its directors, and promoters are currently involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
- Revenue concentrated in a few states poses geographic risks: NACDAC Infrastructure’s business is dependent on projects in the states of Uttarakhand, Uttar Pradesh, and Delhi. As of October 31, 2024, the company generated 41.43% of its total revenue from operations from Uttarakhand, 31.83% from Uttar Pradesh, and 24.00% from Delhi. Any adverse changes to the business environment in these states could negatively impact the company’s operations and financial performance.
- Reliance on competitive bidding affects project acquisition: Infrastructure projects are awarded to NACDAC Infrastructure based on meeting specific pre-qualification criteria and through a competitive bidding process. The company’s business and financial stability could be adversely affected if new projects are not awarded, or if existing contracts are terminated prematurely.
- Cost escalations in long-term projects impact profitability.
- Equipment maintenance and obsolescence pose operational risks.
All the above-mentioned risks should be considered by investors before deciding to invest in the IPO.
Opinion
Given the company’s financial growth, strong fundamentals, and high listing gain potential, the IPO appears attractive and therefore can be applied for both listing gains and investment. However, the IPO is from the SME sector, which tends to carry higher risks, therefore you can go through the points mentioned below:
- For Long-Term Investors: Based on its projected performance for FY25, the issue seems reasonably priced. Therefore, investors might consider holding their investments for the long term.
- For Short-Term Investors: Short term traders or investors should pay attention to the GMP trend on the listing day for any short-term gains, which look really good as of now with a 60% return on the listing date.
The Government of India is highly focused on the infrastructure sector. So, if you believe in the infrastructure sector’s growth and the company’s ability to maintain its performance, you can consider applying for the IPO for both listing gains and investment.
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Additional Details
Promoter Holding
Mr. Hemant Sharma, Ms. Uma Sharma, and Mr. Ashish Saxena are the promoters of the company. Their shareholding before and after the issue is as follows:
| Pre Issue Shareholding | 95.9% |
| Post Issue Shareholding | 67.13% |
NACDAC Infrastructure IPO Allotment Status: Check Now
NACDAC Infrastructure Limited Contact Details
Address: KF-120 Kavi Nagar, Ghaziabad, Uttar Pradesh – 201002
Phone: +91 9319912243
Email: [email protected]
Website: https://nacdacinfrastructure.com/
NACDAC Infrastructure IPO Registrar Details
Registrar: Maashitla Securities Private Limited
Address: 451, Krishna Apra Business Square, Netaji Subhash Place, Pitampura, Delhi -110034
Phone: 011-45121795
Email: [email protected]
Website: https://maashitla.com/allotment-status/public-issues
Disclaimer: We are not a SEBI-registered research analyst. This article is written solely for educational purposes and should not be interpreted as investment advice or recommendations. The stock market involves significant risks, so we encourage you to seek guidance from a financial advisor before making any investment decisions.
FAQs
Q1. What is NACDAC Infrastructure IPO?
NACDAC Infrastructure IPO is a fresh issue, where the company aims to raise ₹10.01 crore through this IPO.
Q2. What is the price band for NACDAC Infrastructure IPO?
The price band for this IPO has been fixed at ₹33 to 35 per share. This price range presents a good opportunity for investors.
Q3. What are the important dates for NACDAC Infrastructure IPO?
The IPO opens on 17 December 2024 and closes on 19 December 2024. The listing of shares will take place on 24 December 2024 on BSE SME.
Q4. How many shares are being offered in the NACDAC Infrastructure IPO?
A total of 28,60,000 shares are being offered in the company’s IPO. These shares are entirely part of the fresh issue, meaning the company is arranging the funds to strengthen the company.
Q5. What is the lot size for NACDAC Infrastructure IPO?
The lot size for the NACDAC Infrastructure IPO is 4,000 shares.
Q6. How can I apply for NACDAC Infrastructure IPO?
You can apply for the NACDAC Infrastructure IPO online. The application can be made via UPI, and the deadline for submission is 19 December 2024.
Q7. What is the expected listing gain for NACDAC Infrastructure IPO?
The Grey Market Premium (GMP) for the NACDAC Infrastructure IPO has reached ₹21, indicating an expected listing gain of around 60%.
Q8. Who is the lead manager of NACDAC Infrastructure IPO?
The lead manager of this IPO is GYR Capital Advisors Private Limited.
Q9. What is the business model of NACDAC Infrastructure IPO?
NACDAC Infrastructure IPO is a construction company that offers various civil and structural works.
Q10. Is NACDAC Infrastructure IPO a good investment?
Given the company’s financial performance and business stability, the NACDAC Infrastructure company could be an attractive investment. Considering the high GMP and fair valuation, it can be suitable for both short-term and long-term investors.
