Nacdac Infrastructure Ltd IPO

The IPO opens on 17 Dec 2024 & closes on 19 Dec 2024.

Nacdac Infrastructure Limited was originally incorporated and registered as a Private Limited Company in the name and style of UMA INFRATECH PRIVATE LIMITED' vide Certificate of Incorporation dated 19th June, 2012 issued by the Registrar of Companies, Kanpur, Uttar Pradesh. Thereafter, Company was converted into a Public Limited and the name was changed to UMA INFRATECH LIMITED' dated December 30, 2021. Thereafter, the name of the Company was changed to NACDAC INFRASTRUCTURE LIMITED' and a fresh Certificate of Incorporation was issued by Registrar of Companies, Kanpur, Uttar Pradesh dated March 09, 2022. Nacdac Infrastructure is a core-construction company specializing in civil and structural services. The Company 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 at Kavi Naga, in Ghaziabad, Uttar Pradesh. It serves a diverse clientele spanning government agencies, and private corporations. In 2023-24, the Company completed PCC and Rubber Stone Soiling at Aimtrex Technologies office situated at Manesar Gurugram; Work for laying of MDPE Pipe Line, backfilling earth and disposal of surplus earth and soil levelled, Installation of GI Pipe Line at Kalkaji, South Delhi; Work Contract for Construction work of Staff Quarter; Civil & Interior Modification Work for B Block; Engineering Consultancy Services for Construction of Godawari Medical Collage at Palakollu, in West Godavari district of Andhra Pradesh; Construction work at Dining Block at Nalanda University, in Rajgir, Distt. Nalanda, Bihar, etc. The Company has been ISO 9001:2015 accredited for Quality Management System, ISO 14001:2015 for Environmental Management System, ISO 45001:2018 for Occupational Health and Safety Management System and are also registered as class A contractor with Uttarakhand Peyjal Sansadhan Vikas Evum Nirman Nigam, Uttarakhand. The Company is planning a Fresh Issue IPO of 29,00,000 Equity Shares.

Nacdac Infrastructure Ltd IPO will close on 19 Dec 2024.

<ul><li>Experienced Promoters having deep domain knowledge to scale up the business.</li><li>Diversified Clientele.</li><li>Management team having established track record.</li><li>Established track record of successfully completed projects.</li><li>Strong order books.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Hemant Sharma</td> <td>5701425</td> <td>74.38</td> <td>5701425</td> <td>54.17</td> </tr> <tr> <td>2</td> <td>Uma Sharma</td> <td>536560</td> <td>7</td> <td>536560</td> <td>5.1</td> </tr> <tr> <td>3</td> <td>Ashish Saxena</td> <td>512926</td> <td>6.69</td> <td>512926</td> <td>4.87</td> </tr> <tr> <td>4</td> <td>Neha Sharma</td> <td>210490</td> <td>2.75</td> <td>210490</td> <td>2</td> </tr> <tr> <td>5</td> <td>Kishan Sharma</td> <td>2797</td> <td>0.04</td> <td>2797</td> <td>0.03</td> </tr> <tr> <td>6</td> <td>Mansi Priya</td> <td>13252</td> <td>0.17</td> <td>13252</td> <td>0.13</td> </tr> <tr> <td>7</td> <td>NACDAC Foods Pvt Ltd</td> <td>373397</td> <td>4.87</td> <td>373397</td> <td>3.55</td> </tr> </tbody> </table>

<ul><li>The comany's business is majorly concentrated in the state of Uttarakhand, Uttar Pradesh and Delhi and the company is exposed to risks emanating from economic, regulatory and other changes in the state of Uttarakhand and Uttar Pradesh.</li><li>Infrastructure projects are typically awarded to it on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. Its business and the company financial condition may be adversely affected if new infrastructure projects are not awarded to it or if contracts awarded to the company is prematurely terminated.</li><li>There have been certain instances in the past regarding certain discrepancies in fillings made to ROC as per Companies Act, 1956/2013</li><li>The company is dependent on its sub-contractors to perform various portions of the contracts awarded to it. Such dependency exposes the company to certain risks such as availability and performance of its sub-contractors.</li><li>The company derives a significant portion of its revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on its business, financial condition, results of operations, and prospects.</li><li>The company is partially reliant on government contracts for its business, and any shifts in government policies, especially regarding the environment and water treatment, could pose significant risks to its business, finances, and operations. Moreover, delays in securing government approvals could exacerbate these challenges.</li><li>The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.</li><li>Bidding for a tender necessitates a comprehensive approach, including thorough project analysis and precise cost estimations. Inaccuracies in cost projections can significantly diminish anticipated returns and profitability assessments. Therefore, meticulous project study is imperative for understanding the project's scope and requirements, facilitating the preparation of a competitive yet profitable bid.</li><li>Its business is working capital intensive involving relatively long implementation periods. The company requires substantial financing for its business operations. The company indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the company ability to conduct its business.</li><li>The company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect the company ability to operate its business and implement its growth plans, thereby affecting its financial condition.</li><li>The Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.</li><li>The company own office equipment, plant and machinery, computer and accessories and vehicles, resulting in fixed costs to the Company. Moreover, the Company is subject to operational risks on account of obsolescence, destruction, breakdown of its equipment and vehicles or failures to repair or maintain such equipment and vehicles. Further, if the company does not continually enhance its business with the most recent equipment and technology, the company ability to maintain and expand its markets may be adversely affected.</li><li>None of the Directors of the Company have experience of being a director of a public listed company.</li><li>The company is required to furnish financial and performance bank guarantees and letter of credits as part of its business. The company inability to arrange such guarantees and/or letters of credit may adversely affect its cash flows and financial condition.</li><li>Its insurance coverage may not be adequate to protect the company against certain losses and this may have a material adverse effect on its business. </li><li>The company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.</li><li>The company Order Book may not be representative of its future results and its actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company results of operations.</li><li>Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.</li><li>The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.</li><li>The company projects are exposed to various implementation and other risks, including risks of time and cost overruns, and uncertainties, which may adversely affect its business, financial condition, results of operations, and prospects.</li><li>The company actual cost in executing a work order or in constructing a project may vary substantially from the assumptions underlying its bid. The company may be unable to recover all or some of the additional expenses, which may have a material adverse effect on its results of operations, cash flows and financial condition.</li><li>Increases in the prices of construction materials, fuel, labour and equipment could have an adverse effect on its business, results of operations and financial condition.</li><li>The company cannot assure that the construction of its projects will be free from any or all defects, which may adversely affect the company business, financial condition, results of operations and prospects.</li><li>The company is dependent upon the experience and skill of its management team and a number of KMPs. If the company is unable to attract or retain such qualified personnel, this could adversely affect its business, results of operations and financial condition.</li><li>The company operate in an extremely competitive industry and failures to successfully compete could result in loss of one or more of its significant customers and may adversely affect the company business.</li><li>The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Issue". Any revision in the estimates may require it to reschedule the company expenditure and may have a bearing on its expected revenues and earnings.</li><li>The average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.</li><li>The company has issued Equity Shares at a price below the proposed issue price during the past 1 years prior to the date of filing the Red Herring Prospectus and the average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.</li><li>The Company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on its financial condition and results of operations.</li><li>The company agreements with banks and financial institutions for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.</li><li>Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect its cash flows, business results of operations and financial condition.</li><li>The company may not be able to collect receivables due from its clients, in a timely manner, or at all, which may adversely affect its business, financial condition, results of operations and cash flows.</li><li>The company requires various statutory and regulatory permits and approvals in the ordinary course of its business, and the company failures to obtain, renew or maintain them in a timely manner may adversely affect its operations.</li><li>The company operations are subject to risks of mishaps or accidents that could cause damage or loss to life and property and could also result in loss or slowdown in its business.</li><li>Its business is subject to seasonal and other fluctuations that may affect its cash flows and business operations.</li><li>The company is subject to risks arising from interest rate fluctuations, which could reduce the profitability of its projects and adversely affect the company business, financial condition and results of operations.</li><li>Any failures to maintain quality control systems for its services could have a material adverse effect on the company business, reputation, results of operations and financial condition.</li><li>Its operations are dependent on a significant number of contract labour and an inability to access adequate contract labour at reasonable costs at the company project sites across India may adversely affect its business prospects and results of operations.</li></ul>

The Issue type of Nacdac Infrastructure Ltd is Book Building - SME.

The minimum application for shares of Nacdac Infrastructure Ltd is 4000.

The total shares issue of Nacdac Infrastructure Ltd is 2860000.

Initial public offer of up to 28,60,000 equity shares of face value Rs. 10 each (the "Equity Shares") of NACDAC Infrastructure Limited ("The Company" or the "Issuer") for cash at an issue price of Rs. 35 per equity share (including a securities premium of Rs. 25 per equity share) ("Issue Price"), aggregating up to Rs. 10.01 crores (The "Issue") of which 2,20,000 equity shares aggregating to Rs. 0.77 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 26,40,000 equity shares of face value of Rs. 10 each at an issue price of Rs. 35 per equity share aggregating upto Rs. 9.24 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 27.17 % and 25.08 % respectively of the post-issue paid-up equity share capital of the company.