Nukleus Office Solutions shares fall up to 24% after a weak debut on BSE SME; check details

Nukleus Office Solutions IPO's trading debut on Tuesday, March 4, was disappointing. The stock listed at a 20% discount on the BSE SME platform.

The Nukleus Office Solutions stock opened the session at ₹187.2 apiece compared to its initial public offering (IPO) price of ₹234 apiece. Within minutes of opening of the trade, the share price fell another 5% to hit the day’s low of ₹177.90. However, it later recovered as much as 5% to hit the upper circuit limit at ₹196.55 apiece.

Soon after listing, as many as 4.6 lakh shares changed hands on the BSE. The total trading value stood at ₹8.61 crore. The company’s market capitalisation reached ₹79.25 crore, as per the BSE data at 10:08 am.

As the minimum bid quantity to apply for the Nukleus Office Solutions shares was 600 units, successful bidders who were allotted shares in the primary issue bore notional listing losses of ₹28,080 per lot (₹46.80 x 600) as soon as the stock started trading in the secondary market.

The ₹31.7-crore Nukleus Office Solutions IPO, which was open for subscription from February 24 to February 27, was subscribed around 1.3 times during the three-day bidding window. The company had received bids for 13.01 lakh shares compared with 10.11 lakh shares on offer.

The issue was mainly backed by retail investors, with the portion reserved for them getting subscribed 1.7 times. The non-institutional investors’ (NII) segment was booked 87%.

The Nukleus Office Solutions IPO was a fixed-price issue, comprising only a fresh issuance of 13.55 lakh shares and no offer-for-sale (OFS) component. Shares in the issue were allotted at ₹234 apiece in a lot size of 600 units.

Sundae Capital Advisors Ltd. was the IPO’s book-running lead manager, Bigshare Services Pvt Ltd. was the registrar, and Nikunj Stock Brokers Ltd. was the market maker.

Established in 2019, Nukleus Office Solutions is engaged in the business of providing co-working and managed office solutions in the Delhi-NCR.

The company offers fully serviced workspaces suitable for enterprises with a requirement of 50 to 500 seats. Its offerings feature flexible workspaces such as private cabins, dedicated desks, startup zones, meeting rooms and virtual offices.

Nukleus Office Solutions had said in its red herring prospectus that the funds raised from the IPO would be used for several strategic initiatives. A portion of the capital is likely to go towards capital expenditure and security deposits required for setting up new centres. Additionally, the company plans to invest in advertising to boost brand visibility and recognition.

Nukleus Office Solutions would also use some funds to support the development of a robust technology platform, enhance online client interactions, integrate all centres, and launch a dedicated mobile application. The remaining funds from the IPO would be allocated for general corporate purposes.

Nukleus Office Solutions has been reporting steady financial growth over the past few years. For the first nine months of financial year 2024-25 ended December 2024, the company’s revenue from operations stood at ₹21.34 crore. In comparison, the full-year revenue in FY 2023-24 and FY 2022-23 was ₹17.12 crore and ₹10.88 crore, respectively.

Its profit after tax (PAT) for the nine-month period of FY25 was reported at ₹1.51 crore compared to ₹1.19 crore for full fiscal year FY24 and ₹67.27 lakh in FY23.