Enviro Infra IPO GMP and Key Details

Enviro Infra Engineers Limited, a prominent player in the water and wastewater treatment sector, has launched its Initial Public Offering (IPO) on November 22, 2024. The subscription window is set to close on November 26, 2024. The company aims to raise approximately ₹650.43 crore through this IPO, comprising a fresh issue of ₹572.46 crore and an offer for sale (OFS) of ₹77.97 crore.

IPO Details:

Price Band: The IPO is priced between ₹140 and ₹148 per equity share.
Lot Size: Investors can bid for a minimum of 101 shares, translating to a minimum investment of ₹14,948 at the upper price band.
Listing Date: The shares are scheduled to be listed on the BSE and NSE on November 29, 2024.

Grey Market Premium (GMP):

As of November 22, 2024, the Grey Market Premium for Enviro Infra Engineers’ IPO stands at ₹27 per share. This indicates a potential listing price of ₹175 per share, suggesting an approximate 18% premium over the upper end of the price band. It’s important to note that GMP is an informal measure and may fluctuate based on market sentiment.

Company Overview:

Established in 2009, Enviro Infra Engineers specializes in designing, constructing, operating, and maintaining water and wastewater treatment plants (WWTPs) and water supply scheme projects (WSSPs) for government bodies. The company’s portfolio includes sewage treatment plants, sewerage schemes, and common effluent treatment plants. With a diversified order book and in-house execution capabilities, Enviro Infra Engineers has demonstrated consistent financial performance and growth prospects.

Financial Performance:

In the fiscal year ending March 31, 2024, the company reported a revenue of ₹728.92 crore, a significant increase from ₹338.10 crore in the previous year. Net profit for the same period stood at ₹108.57 crore, up from ₹55.34 crore in the prior year. This robust financial growth underscores the company’s strong market position and operational efficiency.

Utilization of IPO Proceeds:

The net proceeds from the fresh issue are intended to be used for:

Meeting working capital requirements.
Infusing funds into the subsidiary, EIEL Mathura Infra Engineers, for the construction of a 60 MLD sewage treatment plant under the Mathura Sewerage Scheme in Uttar Pradesh.
Repayment or prepayment of certain outstanding borrowings.
Funding inorganic growth through potential acquisitions.
General corporate purposes.

Investor Considerations:

Analysts have expressed a “subscribe-long term” recommendation for this IPO, citing the company’s strong financials, diversified order book, and growth prospects. However, potential investors should conduct their own due diligence and consider market conditions before making investment decisions.

Conclusion:

Enviro Infra Engineers’ IPO presents an opportunity to invest in a company with a solid track record in the water and wastewater treatment industry. The positive Grey Market Premium reflects favorable market sentiment. Investors are advised to stay informed about the subscription status and market trends as the IPO progresses.

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