-> Enviro Infra Engineers Limited is a company specializing in designing, building, operating, and maintaining water and wastewater treatment plants (WWTPs) and water supply schemes (WSSPs) for government and municipal clients. Below are key details about the company and its IPO:
-> The Enviro Infra Engineers IPO opened for subscription on November 22, 2024, and closed on November 26, 2024. It has been highly successful, being oversubscribed by 20.97 times.
-> The IPO price band was set at ₹140-₹148 per share, with a minimum bid of 101 shares, amounting to ₹14,948.
-> The company aims to raise ₹650 crore through the IPO, with proceeds allocated to working capital needs, partial debt repayment, funding future projects, and general corporate purposes.
-> Enviro Infra specializes in water and wastewater treatment plants, having completed 28 projects as of mid-2024, and reported strong financial growth in FY24, including a 96.19% increase in net profit.
-> The IPO allotment date is November 27, 2024.
Enviro Infra Engineers GMP Today?
-> As of today, the GMP for the Enviro Infra Engineers IPO is at ₹50 per share. This indicates a positive sentiment among investors in the unofficial market, suggesting a potential listing gain if the demand continues to be strong.
-> The IPO, which a price band of ₹140–₹148 per share, is set to close for subscription today, November 26, 2024. The allotment will be finalized on November 27, and the shares are expected to be listed on the NSE and BSE on November 29, 2024.
Business Overview
(1) Core Operations:
- Development of STPs (Sewage Treatment Plants), CETPs (Common Effluent Treatment Plants), and other water infrastructure projects.
- Most plants are Zero Liquid Discharge (ZLD) compliant, promoting water reuse for various applications.
- The company undertakes both urban and rural projects under government-backed initiatives such as the Jal Jeevan Mission and Namami Gange programs.
(2) Track Record:
- Successfully developed 28 WWTPs and WSSPs by mid-2024, including projects exceeding 10 MLD capacity.
- A robust order book valued at ₹1,906.28 crores as of June 30, 2024, spanning 21 ongoing projects
(3) Financial Performance:
- Revenue growth from ₹223.53 crores in FY22 to ₹728.92 crores in FY24.
- Net profit of ₹108.57 crores in FY24, with consistent margins between 14%–16%.
- Strong return on net worth (RONW) of 37.83% as of FY24
IPO Details
(1) Offer Size:
- Fresh issue: ₹619.25–₹654.63 crores.
- Offer for Sale: ₹73.75–₹77.97 crores.
(2) Use of Proceeds:
- Working capital requirements.
- Funding subsidiary projects, including a 60 MLD STP in Mathura, Uttar Pradesh.
- Partial debt repayment and general corporate purposes
(3) Price Band and Lot Size:
- ₹140–₹148 per share, with a minimum lot size of 101 shares (₹14,948).
(4) Subscription Status:
- The IPO was oversubscribed 20.97 times as of its final day (November 26, 2024), reflecting strong investor interest
(5) Key Dates:
- Allotment: November 27, 2024.
- Listing: November 29, 2024, on BSE and NSE
Investment Potential
(1) Valuation:
- At the upper price band, the IPO is valued at a P/E of ~24x FY24 earnings, which is considered reasonable compared to peers like EMS Limited and ION Exchange.
(2) Growth Drivers:
- Increasing focus on sustainable water management solutions.
- Government investments in urban and rural water projects.
(3) Risks:
- Dependence on government contracts and funding.
- Potential competition and environmental challenges in project execution.
-> Know – How To Invest In ETF Esily For First Time?
-> Know – How to invest in SIP?
-> Know – How to invest in Mutual Fund?
Disclaimer: The content on this website is intended for informational purposes only and should not be interpreted as financial or investment advice. Engaging in stock market activities involves inherent risks, and outcomes can be unpredictable. While we strive to provide accurate and up-to-date information, we do not make any guarantees regarding the completeness or reliability of the content. Any investment decisions you make should be based on your own research and consultation with a qualified financial professional. We are not responsible for any financial gains or losses resulting from actions taken based on the information provided here. Always invest wisely and at your own risk.
