NACDAC Infra IPO Listing: Stock lists at 90% premium on BSE SME

NACDAC Infra IPO Listing

NACDAC Infra IPO Listing: Exceptional Response and Impressive Listing Gains as Shares Surge

The NACDAC Infra IPO, which launched in December 2023, has made a striking debut on the BSE SME platform, rewarding investors with substantial returns.

The IPO, which raised ₹10.01 crore, was open for subscription between December 17-19, 2023.

The overwhelming investor interest and the subsequent surge in share price on listing day demonstrate the growing optimism around the company and its future prospects in the booming Indian infrastructure sector.

Staggering Subscription Demand: IPO Over-Subscribed by Over 2,200 Times

The NACDAC Infra IPO was met with an extraordinary level of demand. The offer received a massive 2,209.76 times subscription across all investor categories, signaling tremendous market confidence.

This is a highly rare feat in the IPO space, especially for smaller companies listing on the BSE SME platform. The Qualified Institutional Buyers (QIB) portion alone was subscribed 236.39 times, while the Non-Institutional Investors (NII) segment was filled a staggering 4,084.46 times.

Retail investors, too, demonstrated robust interest, with their portion subscribed 2,503.66 times.

This unparalleled level of oversubscription reflects strong investor confidence in the company’s growth trajectory and its ability to execute large-scale infrastructure projects.

The subscription pattern also indicates a diversified pool of investors, ranging from institutional investors to individual retail participants, all of whom are betting on the company’s potential for substantial growth.

IPO Pricing and Listing Gains: An Exceptional Start for Investors

The NACDAC Infra IPO priced its shares at ₹35 per share, which was considered a reasonable entry point based on the company’s financials, growth prospects, and its track record of executing large infrastructure projects.

Upon listing on the BSE SME platform, the shares opened at ₹795 — a remarkable gain of over 20 times the issue price.

This represented an 11% listing gain right from the opening bell, a solid indicator of the market’s enthusiasm about the company.

As the trading day progressed, the stock price continued to climb, hitting the upper circuit limit of ₹69.82, effectively doubling the initial investment of IPO subscribers.

For investors who participated in the offering at ₹35 per share, this surge means that their investments have now more than doubled within hours of listing, providing them with an impressive 100% return on the first day itself.

This stellar listing gain is not only a testament to the strength of the IPO but also signals that NACDAC Infra is likely to remain a high-growth stock in the coming months, barring any significant market changes.

The fact that the stock hit the upper circuit limit on the first day highlights the strong demand and the positive sentiment surrounding the company.

NACDAC Infra: Company Overview

Founded in 2012, NACDAC Infra has steadily established itself as a key player in India’s infrastructure and construction sector.

The company specializes in the construction of multi-storey buildings, including residential, commercial, and institutional structures.

Its client base includes several prominent government agencies, a factor that provides a layer of security and credibility to the company’s operations.

Since its inception, NACDAC Infra has completed over 45 projects for the Government of India and the Government of Uttarakhand, spanning diverse sectors such as residential housing, public infrastructure, and commercial complexes.

These completed projects not only demonstrate the company’s operational capabilities but also reflect its ability to handle large-scale, complex assignments with ease and efficiency.

In addition to its construction expertise, NACDAC Infra has garnered a reputation for delivering projects on time and within budget, a critical factor for retaining government contracts and attracting new business.

The company’s strategic focus on government contracts provides a significant competitive advantage, given the growing demand for infrastructure development in India.

Robust Financial Growth: Sustained Profitability and Revenue Expansion

The financial performance of NACDAC Infra has been on a steady upward trajectory, reflecting its strong operational foundation and expanding market presence.

In the financial year 2022, the company reported a modest net profit of ₹31.55 lakh, which grew to ₹56.15 lakh in FY 2023. In FY 2024, the company saw a significant jump in profitability, reaching ₹3.17 crore — a growth of over 460%.

Alongside its profit growth, NACDAC Infra has also posted strong revenue figures, which have grown at a compound annual growth rate (CAGR) of more than 87% over the past few years.

In FY 2024, the company achieved a total revenue of ₹36.33 crore, reflecting the success of its expanding order book and ability to secure larger, more profitable projects.

This growth trajectory is further supported by a strong pipeline of government contracts and the company’s ongoing efforts to expand its presence in various infrastructure segments.

For the current financial year (2024-25), NACDAC Infra has already reported a net profit of ₹1.60 crore and revenue of ₹13.76 crore for the period between April and October 2024.

These figures indicate that the company is on track to exceed its previous financial year’s performance, further bolstering investor confidence in its ability to maintain growth momentum.

Strategic Use of IPO Proceeds: Strengthening Operational Capacity

The ₹10.01 crore raised from the IPO will be used for crucial working capital requirements and general corporate purposes.

This infusion of capital will enable NACDAC Infra to scale its operations, meet the growing demand for its services, and pursue additional contracts, especially in the government and public sector infrastructure space.

The company has earmarked these funds to support both short-term operational needs and long-term strategic expansion, ensuring that it is well-positioned for continued growth in the future.

Final Remarks: A Bright Future Ahead for NACDAC Infra

The success of NACDAC Infra’s IPO and its strong listing debut on the BSE SME platform highlight its potential as a high-growth stock in India’s dynamic infrastructure sector.

The overwhelming demand for its IPO, coupled with impressive early listing gains, underscores the positive market sentiment surrounding the company’s future.

With its solid track record of executing government contracts, sustained financial growth, and a strong order pipeline, NACDAC Infra appears well-positioned to capitalize on India’s infrastructure boom.

The company’s focus on large-scale government projects, combined with a robust financial foundation, offers significant potential for future growth, making it an attractive investment proposition for both retail and institutional investors.

As NACDAC Infra continues to expand its operations and enhance its project portfolio, it is likely to emerge as a leading player in India’s infrastructure development sector, providing ample growth opportunities for its stakeholders.

Investors who got in during the IPO are already seeing significant returns, and the company’s long-term prospects look even more promising as it continues to scale up its operations and diversify its project offerings.