SME IPO Mania Hits New Heights

The Initial Public Offering (IPO) frenzy in the SME sector has reached unprecedented levels. NACDAC Infrastructure, a Ghaziabad-based construction company aiming to raise Rs 10 crore, received bids totaling Rs 14,386 crore, marking a staggering 1,976 times subscription. This remarkable achievement makes it the most subscribed IPO in India's capital market history, according to data from primary market analytics firm Chittorgarh.

The non-institutional investor portion saw an overwhelming 2,635 times subscription, while the retail portion was oversubscribed 2,504 times. Institutional investors, including mutual funds and foreign funds, also showed significant interest with a 236 times subscription.

The company is scheduled to list on BSE's SME platform. Prior to the IPO, 7.8 lakh shares were sold to two anchor investors: Al Maha Investment Fund from Muscat, Oman, and Vikasa India EIF I Fund from Oklahoma, US.

NACDAC Infrastructure, established in 2012, specializes in civil and structural services. The funds raised will be used for working capital needs and general corporate purposes. In fiscal 2024, the company reported a net profit of Rs 3.2 crore on total income of Rs 36.3 crore, with an earnings per share (EPS) of Rs 4.14.