SME IPO mania: Infrastructure company's Rs 10cr offer gets Rs 14k crore bids

MUMBAI: The IPO mania in the SME space reached a new high on Thursday. NACDAC Infrastructure, a Ghaziabad-based construction company eyeing to raise Rs 10 crore from the market, got bids totalling Rs 14,386 crore, a subscription of 1,976 times (excluding the Rs 2.7 crore anchor part). This made the IPO the most subscribed one in India’s capital market history, data from primary market analytics company Chittorgarh showed.
Bidding data on BSE showed that the non-institutional (high net worth investors‘) part of the offer was subscribed 2,635 times while the retail part was subscribed 2,504 times. In comparison, the portion reserved for institutional investors like mutual funds, insurance companies, foreign funds etc, was subscribed a decent 236 times. The company is set to list on BSE’s SME platform.
Ahead of the IPO, 7.8 lakh shares of the company were sold to two funds that acted as anchor investors. Al Maha Investment Fund, a Muscat, Oman-based fund had bought 4.9 lakh shares while Vikasa India EIF I Fund, an Oklahoma, US-based fund bought nearly 2.9 lakh shares.
The IPO prospectus for NACDAC Infra offer said that the company was raising funds to meet its working capital needs and for general corporate purposes. NACDAC Infra, incorporated in 2012, is primarily a core-construction company specialising in a comprehensive range of civil and structural services, the offer document noted.
In fiscal 2024, the company had earned a net profit of Rs 3.2 crore on a total income of Rs 36.3 crore. It had an earnings per share (EPS) of Rs 4.14 for FY24.