1,976x subscription! SME IPO asking for Rs 10 crore gets bids worth Rs 14,386 crore

Despite Sebi's tightening of rules for theSME IPO market, it seems the demand garnered by these issues continues to remain unmatched. NACDAC Infrastructure, which asked for a mere Rs 10 crore through its IPO, received nearly 2,000 times subscription.

The company offered 20.8 lakh shares for investors in the IPO, but received 1,976 times bids for 411 crore shares worth about Rs 14,386 crore. The issue was priced at Rs 35 at the upper end.

The robust demand was driven by retail and non-institutional investors, whose categories were subscribed 2500 and 2600 times, respectively.

The company proposes to use the net proceeds from the public offer for working capital requirements and general corporate purposes.
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NACDAC will finalise the share allotment tomorrow and the listing is scheduled on December 24. The GMP is also robust at nearly 142% over the IPO price, but the price cap means that the stock may see a maximum debut gain of 90%.

NACDAC Infrastructure is primarily a core-construction company specializing in a comprehensive range of civil and structural services.

Its core offerings encompass the construction of multi-story buildings, electrical works (both low tension and high-tension), steel structure works, as well as bridges (including FOBs and ROBs) and all associated civil and structural works.

With a strong focus on quality and efficiency, the company serves a diverse clientele spanning government agencies, and private corporations.

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The company has an established track record of executing projects with more than a decade of experience in construction activities and has completed 63 projects worth Rs 96.74 crore so far.

For the period ended June 2024, the company clocked total revenues of Rs 13.71 crore and net profit of Rs 1.6 crore. GYR Capital Advisors is acting as the lead manager to the issue and Maashitla Securities is the registrar.