1,976x subscription! 10 crore to the SME IPO seeking Rs. 14,386 crore bid received

Despite Sebi’s tightening of regulations for the SME IPO market, it seems that the demand generated by these issues has not been consistently matched. NACDAC Infrastructure, which through its IPO raised just Rs. 10 crores, it received nearly 2,000 times the subscription.

The company had offered 20.8 lakh shares to investors in the IPO, but around Rs. 1,976 bids were received for 411 crore shares worth Rs 14,386 crore. The issue price is at the upper end of Rs. was 35.

Strong demand was driven by retail and non-institutional investors, whose series were subscribed 2500 and 2600 times, respectively.

The Company proposes to use the net proceeds from the public offering for working capital requirements and general corporate purposes.

Mega Multibagger! The billionaire Jhunjhunwala family paid 530 times the Inventurus IPO

NACDAC will finalize the allotment of shares tomorrow and the listing will be scheduled for December 24. GMP is also strong at around 142% above the IPO price, but the price cap means the stock could see a maximum debut gain of 90%.

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

Its core offerings include construction of multi-storey buildings, electrical works (both low tension and high-tension), steel structure works, as well as bridges (including FOB and ROB) and all related civil and structural works.

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

Also Read: Laxmi India Finance files DRHP with SEBI for IPO

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

For the period ended June 2024, the company has made Rs. 13.71 crore gross revenue and Rs. 1.6 crore net profit was made. GYR Capital Advisors is acting as the lead manager of the issue and Mashitla is the securities registrar.