The NACDAC Infrastructure IPO is set to open for subscription from 17th December 2024 to 19th December 2024. Priced at ₹35 per share, this IPO has generated significant buzz in the market. Investors are eagerly eyeing the offering, as the shares are currently commanding a 90% premium in the grey market (GMP). The total issue size of the IPO is ₹10.01 crore, with the company planning to list its shares on the Bombay Stock Exchange's SME platform on 24th December 2024.

Grey Market Premium (GMP) Insights

NACDAC Infrastructure shares are trading with a hefty ₹33 premium in the grey market. Based on this GMP, the shares are expected to debut at ₹68 per share, offering potential investors a whopping 94% profit on listing day. Such significant traction in the grey market is driving optimism among retail and institutional investors alike.

Retail Investors Can Bid for One Lot

Retail investors can bid for only one lot in the IPO. A single lot comprises 4,000 shares, which means investors need to allocate ₹1,40,000 to participate in the IPO. Before the IPO, promoters held a 95.9% stake in the company, which will reduce to 67.13% post-issue. The funds raised through the IPO will be used for working capital requirements and general corporate purposes, ensuring the company’s financial health remains robust.

About NACDAC Infrastructure

Established in 2012, NACDAC Infrastructure specializes in construction projects, including multi-story buildings, residential complexes, commercial spaces, and institutional structures. The company’s core expertise lies in delivering high-quality construction solutions tailored to modern architectural and functional needs. Over the years, NACDAC Infrastructure has built a reputation for completing projects efficiently and maintaining high construction standards. The IPO marks a crucial milestone for the company, as it aims to scale operations and strengthen its market position.

Promoters and IPO Impact

The IPO will bring down promoter holding significantly, paving the way for increased public participation. This dilution is a strategic move aimed at complying with listing norms and raising funds for expansion. The reduced promoter stake also signals confidence in sharing the company’s growth prospects with retail and institutional investors.

Key Dates for NACDAC Infrastructure IPO

1. IPO Open Date: 17th December 2024
2. IPO Close Date: 19th December 2024
3. Listing Date: 24th December 2024 (BSE SME Platform)

Why This IPO is Worth Watching

1. Strong Grey Market Premium: With a GMP of ₹33, the IPO is already a hit among grey market traders, indicating high demand.
2. Attractive Listing Gains: Based on GMP trends, investors could see a 94% gain on listing day.
3. Specialized Business Model: NACDAC Infrastructure's expertise in construction positions it as a reliable player in the market.

Potential Risks

While the IPO promises significant listing gains, investors should also consider potential risks. The construction sector is cyclical and depends heavily on market demand and economic conditions. Moreover, smaller SME IPOs often face higher volatility post-listing. Investors are advised to analyze the company’s financials and growth plans before making their decisions.