NACDAC Infrastructure Limited invites investors to be part of the construction sector through an upcoming initial public offering (IPO) that promises both opportunity and excitement. Launching from December 17 to 19, 2024, the company is seeking to raise ₹10.01 crores by offering shares priced between ₹33 and ₹35 each, opening a gateway for investors to participate in its growth story.
The IPO is structured to accommodate different investor profiles, with retail investors able to enter with a minimum investment of ₹140,000 for a lot of 4,000 shares, and High Net-worth Individuals welcome to invest ₹280,000 or more. The investment timeline is meticulously planned, with share allotment notifications scheduled for December 20, 2024, and the company set to make its debut on the BSE SME platform on December 24, 2024. This carefully crafted offering represents an opportunity for investors to be part of NACDAC Infrastructure Limited's ambitious vision and potential market expansion.
NACDAC Infrastructure IPO is a fundraise worth ₹10.01 crores comprising purely of a fresh issue of 28.6 lakh shares with 220,000 shares reserved for the market maker Giriraj Stock Broking Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from December 17, 2024, to December 19, 2024, providing an opportunity for investors looking to gain a stake in the construction sector. Here are the NACDAC IPO details.
| NACDAC Infrastructure IPO Date | December 17, 2024 - December 19, 2024 |
| Issue Type | Book Built Issue IPO |
| Price Band | ₹33 to ₹35 per share |
| Face Value | ₹10 per share |
| Lot Size | 4,000 shares |
| Fresh Issue Size | 2,860,000 shares worth ₹10.01 crores |
| Total Issue Size | 2,860,000 shares worth ₹10.01 crores |
| Listing at | BSE SME |
| Market Maker Portion | 220,000 - Giriraj Stock Broking Pvt Ltd |
| Share Holding Post Issue | 10,525,136 |
| Share Holding Pre Issue | 7,665,136 |
The NACDAC Infrastructure IPO opens for subscription on December 17, 2024, and closes on December 19, 2024, with allotment scheduled for December 20, 2024.
| IPO Open Date | December 17, 2024 (Tuesday) |
| IPO Close Date | December 19, 2024 (Thursday) |
| Basis of Allotment | December 20, 2024 (Friday) |
| Initiation of Refunds | December 23, 2024 (Monday) |
| Credit of Shares to Demat Account | December 23, 2024 (Monday) |
| Listing Date on BSE SME | December 24, 2024 (Tuesday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 19, 2024 (Thursday) |
NACDAC Infrastructure Limited, incorporated in 2012, is a versatile construction company specializing in multi-story, residential, commercial, and institutional structures. As a Class A contractor registered with Uttarakhand Peyjal Sansadhan Vikas Evum Nirman Nigam and holding ISO certification, the company has established itself as a comprehensive construction service provider. Their expertise spans civil and structural construction, including multi-story buildings, steel structure works, bridges (FOBs and ROBs), housekeeping and manpower supply, and related civil, structural, and electrical works for both low-tension and high-tension projects.
With a proven track record of completing 45 projects, NACDAC Infrastructure Limited works extensively with government agencies and private companies, having successfully executed several significant projects for the Government of India and Uttarakhand. The company also strategically undertakes sub-contracts for third-party infrastructure and construction projects. As of March 31, 2024, NACDAC maintains a lean and focused workforce of 27 employees, demonstrating an efficient operational model that allows them to deliver diverse and complex construction solutions across various sectors.
NACDAC Infrastructure Limited plans to strategically deploy the proceeds from its public issue primarily towards enhancing its operational capabilities. The company will allocate funds to bolster its working capital, which is crucial for maintaining smooth business operations, managing day-to-day expenses, and supporting ongoing and future construction projects. Additionally, the proceeds will be used for general corporate purposes.
NACDAC Infrastructure Limited reportedly saw an annual rise of 209.49% in its revenue and 904.44% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of March 31, 2024, the key performance indicators reflect the company's financial health with Return on Equity (RoE) of 35.57%, a Return on Capital Employed (RoCE) at 25,88% and a Debt-to-Equity ratio of 0.54. The Return on Net-Worth (RoNW) stands at 26.39%, and the PAT Margin was 8.73%. The Price to Book Value was 1.87. The company’s market capitalisation is ₹36.84 crore.
| Period Ended | October 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 1,376.22 | 3,633.22 | 1,173.92 | 1,032.10 |
| Assets | 3,022.78 | 2,459.76 | 1,246.09 | 900.80 |
| Net Worth | 1,361.22 | 1,200.80 | 581.20 | 487.77 |
| Profit After Tax | 160.42 | 316.90 | 31.55 | 31.55 |
| Reserves & Surplus | 594.71 | 434.29 | 117.05 | 47.19 |
| Total Borrowing | 811.17 | 643.24 | 9.49 | 189.92 |
Amount in ₹ crores
The pre-IPO EPS is at ₹0.73 while the post-IPO EPS will be ₹2.45. Similarly, the pre-IPO Price to Earnings ratio is 47.78 and will become 14.28 post-IPO.
NACDAC Infrastructure Limited stands out as a robust player in the construction sector, boasting a comprehensive service portfolio that spans multi-story buildings, bridges, and electrical works. The company has demonstrated exceptional financial growth, with revenues surging nearly fourfold from ₹659.69 lakhs to ₹2,483.67 lakhs between FY21 and FY24, and net profit increasing dramatically from ₹8.19 lakhs to ₹214.95 lakhs. Led by experienced promoters Mr. Hemant Sharma, Ms. Uma Sharma, and Mr. Ashish Saxena, the company has successfully completed 45 projects, establishing a proven track record of efficient project execution.
The company's strategic advantages extend beyond financial performance. With ISO certification and Class A contractor status, NACDAC has cultivated strong relationships with government bodies and private entities, ensuring a consistent flow of work orders. Its diverse service portfolio reduces dependency on a single revenue stream, while maintaining an efficient cost management approach. The company's asset base has more than doubled, and it has significantly reduced its debt, positioning itself as virtually debt-free with an impressive cash conversion cycle of 0 days.
NACDAC Infrastructure Limited faces several challenges that could potentially impact its growth and stability. The company has a high concentration of revenue (97%) in just three states: Uttarakhand, Uttar Pradesh, and Delhi, which exposes it to significant regional economic and regulatory risks. Its heavy reliance on government contracts makes it vulnerable to policy changes and potential approval delays, while the competitive bidding process could reduce profitability and growth potential.
The company's operational model also presents some vulnerabilities. With a small workforce of only 29 employees, NACDAC may struggle to handle large-scale projects or manage rapid growth effectively. Its dependency on subcontractors introduces risks related to availability and performance, potentially leading to project delays and inefficiencies. The construction sector's inherent sensitivity to economic fluctuations further compounds these challenges, making the company susceptible to market volatilities. Additionally, past discrepancies in regulatory filings and a complex tendering process could expose the company to compliance issues and inaccurate cost projections.
Investors considering NACDAC Infrastructure Limited's initial public offering have an opportunity to strategically position themselves within the dynamic construction sector. This IPO represents more than a mere financial transaction; it's an invitation to participate in a potentially transformative infrastructure development journey. Prudent investment demands a comprehensive approach. Prospective investors should meticulously analyze the company's operational framework, financial performance, and long-term growth strategy. This means diving deep into the offer document, examining the company's track record, understanding its competitive positioning, and assessing how its business model aligns with broader infrastructure development trends. The true value lies in making an informed, strategic decision. Consulting with a financial advisor, understanding the risk profile, and aligning the investment with personal financial goals are crucial steps in transforming this opportunity from a simple share purchase to a calculated investment in infrastructure potential.
What is the NACDAC Infrastructure IPO?
The NACDAC Infrastructure Limited IPO is an BSE SME offering consisting of 28.6 lakh equity shares with a face value of ₹10, aiming to raise to ₹10.01 crore. The price band has been set between ₹33 to ₹35 per share, with a minimum order quantity of 4000 shares. This IPO will be open for subscription from December 17, 2024, to December 19, 2024. GYR Capital Advisors Private Limited is the book-running lead manager, Maashitla Securities Private Limited is the registrar while Giriraj Stock Broking Private Limited is the market maker.
When will the NACDAC Infrastructure IPO open?
The NACDAC Infrastructure IPO will open for subscription on December 17, 2024, and will close on December 19, 2024.
When is the NACDAC Infrastructure IPO listing date?
The tentative listing date for the NACDAC Infrastructure IPO is Tuesday, December 24, 2024.
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