The Concord Enviro Systems IPO is set to open for public bidding on December 19, 2024, offering investors a chance to participate in one of the leading global providers of water and wastewater treatment solutions. The company aims to raise ₹500.32 crore through a combination of a fresh share sale and an offer-for-sale (OFS). Here’s a comprehensive breakdown of the IPO, its objectives, and Concord Enviro Systems’ business highlights.
Key Details of the IPO
| Particulars | Details |
|---|---|
| IPO Dates | December 19-23, 2024 |
| Price Band | ₹665-701 per share |
| Lot Size | Minimum 21 shares and multiples thereafter |
| Issue Size | ₹500.32 crore |
| Fresh Issue | ₹175 crore |
| OFS | ₹325.32 crore |
| Anchor Book Opening | December 18, 2024 |
| Listing Date | December 27, 2024 |
| Stock Exchanges | BSE and NSE |
| Lead Managers | Motilal Oswal Investment Advisors, Equirus Capital |
| Registrar | Link Intime India |
About Concord Enviro Systems
Founded in 1999, Concord Enviro Systems specializes in water and wastewater treatment solutions, including Zero-Liquid Discharge (ZLD) technology. The company provides comprehensive, in-house solutions across the value chain:
- Design, Manufacturing, and Installation.
- Operation and Maintenance (O&M).
- Digitalization and IoT for monitoring and optimization.
Global Presence and Customer Base
- Domestic Customers: 353
- International Customers: 24
- Export Markets: North America, Latin America, Africa, the Middle East, and Southeast Asia.
- Manufacturing Facilities: Located in Vasai, India, and Sharjah, UAE.
IPO Objectives
The proceeds from the IPO will be utilized for:
- Investments in Subsidiaries:
- Supporting wholly-owned subsidiaries and joint ventures.
- Capital Expenditure:
- Funding expansion plans to enhance manufacturing capabilities.
- Technological Advancements:
- Investing in new technologies and growth initiatives to access untapped markets.
- General Corporate Purposes:
- Addressing operational and financial requirements.
Financial Performance
| Period | Net Profit (₹ crore) | Revenue (₹ crore) |
|---|---|---|
| 5 Months (Aug 2024) | ₹0.52 | ₹208.02 |
| FY24 (March 2024) | ₹41.44 | ₹512.27 |
While the company posted a modest net profit for the five months ending August 2024, its full-year performance highlights robust revenue generation.
Allocation for Investors
| Category | Allocation |
|---|---|
| Qualified Institutional Buyers (QIBs) | 50% |
| Non-Institutional Investors (NIIs) | 15% |
| Retail Investors | 35% |
Why Consider Concord Enviro Systems IPO?
- Leadership in Water Solutions:
- A global leader in wastewater treatment and ZLD technology.
- Strong Export Presence:
- Significant footprint in international markets, catering to diverse industries.
- Sustainability Focus:
- Solutions aiding industries in achieving water conservation and energy optimization goals.
- Solid Financials:
- Consistent revenue growth with a growing international customer base.
- Strategic Expansion:
- Investments in technology and manufacturing promise future scalability.
Important Dates
| Event | Date |
|---|---|
| Anchor Book | December 18, 2024 |
| IPO Opening | December 19, 2024 |
| IPO Closing | December 23, 2024 |
| Listing Date | December 27, 2024 |
Conclusion
The Concord Enviro Systems IPO provides investors an opportunity to invest in a company that plays a critical role in sustainability and water conservation. With its strong global presence, innovative solutions, and strategic use of IPO proceeds, the company is well-positioned for future growth. Potential investors should review the price band, financials, and allotment strategy before making a decision.
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Disclaimer
This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.
