NACDAC Infrastructure IPO Date, Price, GMP, Insights

NACDAC Infrastructure IPO-Complete Overview

NACDAC Infrastructure IPO under the SME IPO category is a book-built issue of Rs.10.01 crore by NACDAC Infrastructure Limited, incorporated in 2012. It is a construction company specializing in multi-storied buildings and residential, commercial, and institutional structures.

The company is a Class A contractor, registered with Uttarakhand Peyjal Sansadhan Vikas Evum Nirman Nigam, and also possesses ISO certification.

The core business of the company lies in Civil and Structural construction, including multi-storied buildings, works in steel structure houses, housekeeping and manpower supplies, bridges (FOBs and ROBs), and all relevant civil structural and electrical works (both Low-Tension and High-Tension).

The Company has successfully executed 45 projects. Operates for government organizations and private firms, and a few among them have been executed for the Government of India and Uttarakhand. Besides that, the company also has subcontracting for third-party infrastructures and construction projects.

 

 NACDAC Infrastructure IPO Overview

This NACDAC Infrastructure IPO date is 17 December 2024, and its ‘initial public offering’ will end on 19 December 2024. 

The Rs.10.01 crore new SME IPO comprises a wholly fresh issue of 28.6 lac Shares.

This upcoming IPO date is on December 17, 2024. NACDAC Infrastructure IPO Price is Rs.33 to Rs.35 for each Share. 

The expected IPO listing date is Tuesday, 24 December 2024, and listing at BSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Operation-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Working Capital.

• General corporate purposes.

Peers of NACDAC Infrastructure Ltd.

Evaluation

The NACDAC Infrastructure Limited IPO share price is Rs.33 to Rs.35 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2023 with an EPS of Rs.0.66 from the last year, the resulting P/E ratio is 53.03x.

Considering the weighted EPS of Rs.0.64 for the last three years, the P/E ratio is 54.68x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 12.92x.

 

In simple words, the P/E ratio of this IPO (53.03x), compared with the industry’s average P/E of 12.92x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry. 

 

IPO's Strengths 

• Demonstrated the ability to carry out civil projects effectively.

• Knowledgeable promoters with a capable management group.

• Numerous services.

• Order of work.

• Connection with the customers.

 

IPO’s Weaknesses

• Its business has constituted more than any state in India. It is concentrated more in the states of Uttarakhand, Uttar Pradesh, and Delhi, and besides these risks, the company is exposed to economic risks emanating from the regulatory and other alterations in the states of Uttarakhand and Uttar Pradesh.

• The company has usually not been awarded infrastructure projects except on the satisfaction of basic prequalification criteria and following a fair competition process. Its business as well as its financial state may be adversely affected if new projects in infrastructure are not awarded to the company or if the awarded contracts get terminated by it prematurely.

• Various portions of contracts that are given to the company have been awarded to its sub-contractors. Thus, this dependency has invited some risks such as the availability and performance of the sub-contractors.

• The company is partly relying on government contracts for the business. Therefore, potential dangers to its business, finances, and operations could come from changes in government policies, for instance, environmental and water treatment policies affecting the company. Further, long delays of government approvals would worsen this. 

 

NACDAC Infrastructure IPO GMP 

NACDAC Infrastructure IPO GMP today is Rs.0 as of 11 December 2024.

IPO Timetable (Tentative)

The IPO opening date is from December 17 to December 19, 2024, with allotment on December 20, refund initiation on December 23, and listing on December 24, 2024.

NACDAC Infrastructure IPO Details 

The NACDAC IPO with a Face Value of Rs.10 per share offers a total issue size of 28,60,000 Shares (Rs.10.01 Cr).

NACDAC IPO Lot Details

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (4000 Shares) amounting to Rs.1,40,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (8000 Shares) amounting to Rs.2,80,000.

 

IPO Reservation (% of Net Issue)

 

 

 

Promoters And Management of NACDAC Infrastructure Ltd.

• Mr. Hemant Sharma

• Ms. Uma Sharma

• Mr. Ashish Saxena.
  
  

 

IPO Lead Managers

• GYR Capital Advisors Private Limited.
  
  

Dividend Policy

The company has not declared any dividends in the previous years.

Conclusion

NACDAC Infrastructure IPO will be a new issue of shares for Rs 10.01 crore to fund construction activities and working capital. The P/E ratio is very expensive when compared to industry figures, which indicates very aggressive dumping and could have consequences for investors in the concentrated presence in certain states. Before investing in the IPO, potential investors need to consider considering their perceptions about these aspects.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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