NACDAC Infrastructure Shines on Listing Day with 90% Premium Surge

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NACDAC Infrastructure made an impressive debut on the BSE SME platform, with shares trading at a 99.49% premium to the issue price of ₹35. The stock debuted at ₹66.50, marking a 90% surge over its IPO price, and soon reached its 5% upper circuit limit at ₹69.82. This impressive milestone stems from the extraordinary demand for the IPO, subscribed an astounding 1,976.14 times. The company’s emphasis on civil and structural projects, robust financial health, and strategic deployment of IPO proceeds have significantly appealed to investors.

BSE SME NACDAC Infrastructure Spurts on Listing Day

Introduction

Shares of NACDAC Infrastructure surged on their debut on the BSE SME platform, underscoring the company’s successful entry into the stock market. NACDAC Infrastructure’s IPO, priced between ₹33-₹35 per share, saw unprecedented demand, with subscriptions exceeding expectations. The stock’s strong listing aligns with the market’s enthusiasm for high-potential infrastructure companies.

Company Overview

Working Model

NACDAC Infrastructure specializes in civil and structural construction projects, including multi-story buildings, steel structures, electrical works, and bridges. The company serves both government and private sector clients, leveraging over a decade of experience to complete 63 projects worth approximately ₹96.74 crore.

Revenue Model

The company generates revenue through its construction contracts, ensuring timely and quality project execution. For the period ending 31 October 2024, NACDAC Infrastructure recorded revenue of ₹13.71 crore and a net profit of ₹1.60 crore, showcasing its operational efficiency and profitability.

Funding Background

Ahead of its IPO, the company raised ₹2.73 crore from anchor investors, issuing 7.80 lakh shares at ₹35 each. The IPO raised an additional ₹10.01 crore through a fresh issue of 28.60 lakh shares. The funds are allocated to meet working capital requirements and support general corporate activities.

Founders and Leadership

NACDAC Infrastructure’s leadership is rooted in a commitment to innovation and quality. The founders bring extensive expertise in the construction industry, which has been instrumental in establishing the company’s strong reputation.

IPO Highlights

1. Subscription Details: The IPO was subscribed 1,976.14 times, with retail investors leading the charge at 2,503.66 times.
2. Price Band: Set at ₹33-₹35 per share.
3. Investor Demand: Over 411 crore shares were bid against an offering of 18.60 lakh shares.
4. Grey Market Premium (GMP): Indicated a 142% premium prior to listing.

Listing Day Performance

Stock Movement

• Opening Price: ₹66.50, a 90% premium to the issue price.
• High: ₹69.82, hitting the 5% upper circuit.
• Volume Traded: Approximately 3.60 lakh shares changed hands.

Promoter Shareholding

Following the IPO, the promoter shareholding decreased significantly from 95.90% to 69.84%, showcasing heightened public involvement.

Background Story

NACDAC Infrastructure’s journey began over a decade ago with a vision to deliver world-class infrastructure solutions. The company’s expansion stems from its expertise in executing intricate projects effectively, gaining credibility with both private and government clients.With a proven track record, NACDAC has established itself as a key player in India’s construction sector.

Key Insights and Trends

1. Infrastructure Sector Boom: India’s push for infrastructure development creates lucrative opportunities for companies like NACDAC.
2. SME IPO Success: The overwhelming subscription rate reflects strong investor confidence in SMEs with robust business models.
3. Future Potential: NACDAC’s strategic utilization of IPO funds positions it for sustained growth.

Learning for Startups and Entrepreneurs

1. Focus on Fundamentals: Strong financials and a clear value proposition attract investor confidence.
2. Strategic Fund Utilization: Clearly defined objectives for fund usage boost market credibility.
3. Market Readiness: Preparing for public listing requires robust planning and transparency.
4. Investor Engagement: Anchor investments can significantly enhance an IPO’s success.

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