Enviro Infra Engineers Ltd is set to launch its much-awaited Initial Public Offering (IPO) on November 22, 2024, aiming to raise ₹650.43 crore. This IPO presents a compelling opportunity for investors interested in infrastructure development and wastewater management.
IPO Key Details
| Detail | Information |
|---|---|
| IPO Open Date | November 22, 2024 |
| IPO Close Date | November 26, 2024 |
| Allotment Date | November 27, 2024 |
| Price Band | ₹140 to ₹148 per share |
| Lot Size | 101 shares |
| Minimum Investment | ₹14,948 |
| Listing Date | November 29, 2024 |
| Total Issue Size | ₹650.43 crore |
IPO Structure and Subscription Details
The IPO comprises a fresh issue of equity shares worth ₹572.46 crore and an offer-for-sale of ₹77.97 crore. Here’s the breakdown of share allocation:
- Qualified Institutional Buyers (QIBs): 50%
- Retail Investors: 35%
- Non-Institutional Investors (NIIs): 15%
The IPO includes a total of 4.3 crore shares, and retail investors can apply for a minimum of one lot comprising 101 shares.
Utilization of Funds
Enviro Infra Engineers plans to utilize the proceeds as follows:
- Working Capital Needs: To support ongoing and future projects.
- Investment in Subsidiary: A significant portion of funds will be directed to EIEL Mathura Infra Engineers for its Mathura Sewerage Scheme, which includes constructing 60 MLD sewage treatment plants (STPs).
- Debt Repayment: Partial or full repayment of outstanding borrowings.
- Inorganic Growth: Acquisitions to expand market reach.
- General Corporate Purposes: Supporting operational needs and business growth.
Company Overview
Founded in 2009, Enviro Infra Engineers specializes in designing, constructing, and maintaining water and wastewater treatment plants. With over 28 completed projects as of June 30, 2024, the company holds a strong foothold in infrastructure projects, especially those exceeding 10 MLD capacity.
- FY24 Financial Highlights:
- Revenue: ₹738 crore (116% YoY growth)
- Net Profit: ₹108.57 crore (96.19% YoY growth)
Should You Invest?
Enviro Infra Engineers’ robust financials, clear utilization plans for IPO proceeds, and a solid track record make it an attractive option for investors. However, like any IPO, risks such as regulatory changes and market volatility should be considered.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making investment decisions.
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