NACDAC Infrastructure Lists at 90% Premium, Demonstrates Strong Market Reception on BSE SME

NACDAC Infrastructure Limited, a specialised construction and infrastructure company operating since 2012, marked a remarkable entry into the public markets on Tuesday, 24th December 2024. The company, which has completed 45 projects and established itself as a Class A contractor in Uttarakhand, commenced trading on the BSE SME platform amid significant investor enthusiasm.

NACDAC Infrastructure Listing Details

The company's market debut reflected exceptional investor confidence in its business model and growth prospects:

• Listing Time & Price: When trading commenced at market open, NACDAC Infrastructure share price debuted at ₹66.50 on BSE SME, delivering an immediate 90% gain to IPO investors. This strong opening validates the market's recognition of the company's established execution capabilities and order book strength.
• Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹33 and ₹35 per share, ultimately fixing the final issue price at ₹35. This pricing approach successfully balanced retail investor accessibility with fair value for the company's growth potential.
• Price Evolution: By 10:19 AM IST, investor enthusiasm continued to build, pushing the stock to hit the upper circuit at ₹69.82. This represented a near-doubling of value at 99.49% above the issue price, demonstrating sustained buying interest throughout the early trading session.

NACDAC Infrastructure First-Day Trading Performance 

• The trading activity showed robust participation and strong investor conviction:
• Volume and Value: Within just the first few hours, 3.28 lakh shares changed hands, generating a turnover of ₹2.26 crore. The trading activity indicated genuine investor interest in the company's prospects.
• Demand Dynamics: The stock's appeal was evident in the order book, which showed tremendous buying pressure with orders for 88.08 lakh shares while sellers remained absent at the upper circuit. This imbalance highlighted strong investor belief in the company's long-term prospects.

NACDAC Infrastructure Market Sentiment and Analysis

• Market Reaction: Strong buying interest with immediate upper circuit hit
• Subscription Rate: The IPO was massively oversubscribed by 2,209.76 times, with NIIs leading at 4,084.46 times subscription, followed by retail investors at 2,503.66 times, and QIBs at 236.39 times
• Pre-listing Interest: Anchor investors demonstrated confidence by investing ₹2.73 crore before the public issue

NACDAC Infrastructure Growth Drivers and Challenges

Expected drivers of future performance:

• Proven execution track record
• Experienced management team
• Diverse service portfolio
• Strong order book of ₹88.33 crore
• Established client relationships

Potential challenges:

High working capital requirements
Industry cyclicality
Competition in construction sector
Geographic concentration risks

Utilisation of IPO Proceeds 

The ₹10.01 crore raised will be used for:

• Working capital requirements
• General corporate purposes

NACDAC Infrastructure Financial Performance 

The company has shown exceptional growth:

• Revenue increased by 209.49% to ₹3,633.22 lakhs in FY2024 from ₹1,173.92 lakhs in FY2023
• 7M FY2025 (ended October 2024) showed revenue of ₹1,376.22 lakhs with PAT of ₹160.42 lakhs
• Strong financial metrics with ROE of 35.57% and ROCE of 25.88%

As NACDAC Infrastructure begins its journey as a listed entity, market participants will closely monitor its ability to execute its order book and maintain growth momentum. The strong listing and immediate upper circuit suggest robust investor confidence in the company's prospects in the specialized construction and infrastructure sector.