This recently listed SME stock zoomed 204% against issue price in 10 days

Shares of NACDAC Infrastructure hit a new high of Rs 106.40, surging 17 per cent on the BSE in Wednesday's trade amid heavy volumes in an otherwise weak market

Shares of NACDAC Infrastructure hit a new high of Rs 106.40, surging 17 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes in an otherwise weak market. The stock of the SME (Small and Medium Enterprises) company is quoting higher for the fifth straight day; it has rallied 43 per cent during the period.

 

At 12:43 PM, NACDAC Infra share price was trading 11 per cent higher at Rs 100.30, as compared to the 0.88 per cent decline in the BSE Sensex. The average trading volumes on the counter more than doubled, with 984,000 shares changing hands so far, as against an average 389,000 shares that were traded in the past two weeks, the BSE data showed.

 

 

Meanwhile, since its debut on December 24, 2024, in 10 trading days, the stock price of NACDAC Infra has zoomed 204 per cent against its issue price of Rs 35 per share. The company had made a stellar debut on the BSE SME at Rs 69.82, doubling investors' money on listing day.

 

NACDAC Infra is primarily a core-construction company specialising in a comprehensive range of civil and structural services. The company’s core offerings encompass the construction of multi-story buildings, electrical works (both Low-Tension & High-Tension), steel structure works, as well as bridges (including FOBs and ROBs), and all associated civil and structural works. 

 

The company has successfully completed many projects awared by various departments of the Government of India and the Uttarakhand state government. Over the years, it has successfully completed 63 projects worth approximately Rs 96.75 crore. It had an order book worth Rs 88.33 crore as of October 31, 2024.

 

As per the shareholding pattern available on the exchanges, as of December 20, 2024, of the 30.16 per cent public shareholding in the company, foreign institutional investors owned 9.46 per cent stake in the company, while domestic institutional investors held 4.94 per cent, data showed. Retail individuals held 14.81 per cent stake in NACDAC Infra, the data showed.

 

To meet India’s aim of reaching a $5 trillion economy by 2025, infrastructure development is the need of the hour. The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as ‘Make in India’ and the production-linked incentives (PLI) scheme to augment the growth of the infrastructure sector. Historically, more than 80 per cent of the country's infrastructure spending has gone towards funding transportation, electricity, and water and irrigation projects.

 

While these sectors still remain the key focus, the government has also started to focus on other sectors as India's environment and demographics evolve. There is a compelling need for enhanced and improved delivery across the whole infrastructure spectrum, from housing provisions to water and sanitation services, apart from digital and transportation demands, which will assure economic growth, increase the quality of life, and boost sectoral competitiveness, the company said in its red herring prospectus.

 

The government has also suggested an investment of $750 billion to strengthen the country's railway infrastructure and envisioned the Maritime India Vision 2030, which estimates massive investments to develop world-class infrastructure at Indian ports.

 

Global investment and partnerships in the infrastructure space, such as the India-Japan forum for development in the Northeast are also indicative of more investments. These initiatives come at a momentous juncture as the country aims for self-reliance in future-ready and sustainable critical infrastructure, the company said.