Enviro Infra Engineers, a company specializing in the design, construction, and maintenance of water treatment facilities, is launching its IPO from November 22 to November 26, 2024.
The company has set a price band of ₹140 to ₹148 per share, and the IPO includes both new equity shares and an offer for sale (OFS) by existing shareholders.
Key IPO Details
- Price Band: ₹140-₹148 per share
- Lot Size: 101 shares
- Issue Size: 3.87 crore new equity shares + 52.68 lakh OFS shares
- Listing Date: Expected on November 29, 2024
Enviro Infra Engineers plans to use the funds raised for working capital requirements, supporting its subsidiary projects, debt repayment, and general corporate purposes.
Subscription Details and Allotment Dates
The IPO subscription is divided among various investor categories:
| Investor Category | Allocation |
|---|---|
| Qualified Institutional Buyers (QIBs) | Up to 50% |
| Non-Institutional Investors (NIIs) | Up to 15% |
| Retail Investors | Up to 35% |
| Employee Reservation | 1,00,000 shares with a discount of ₹13 per share |
Key Dates:
- Anchor Investor Allocation: November 21, 2024
- Subscription Dates: November 22-26, 2024
- Allotment Finalization: November 27, 2024
- Refunds Initiated: November 27, 2024
- Demat Credit: November 28, 2024
- Listing Date: November 29, 2024
Business Profile: What Does Enviro Infra Engineers Do?
Founded in 2009, Enviro Infra Engineers focuses on the development of water and wastewater treatment projects for government entities. The company handles Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), and Water Treatment Plants (WTPs).
These projects are executed under EPC (Engineering, Procurement, and Construction) and Hybrid Annuity Models (HAM).
Key Achievements:
- Completed 28 projects across India, including 22 projects with a capacity of 10 MLD and above.
- Partnered with state governments and urban local bodies for infrastructure development.
The company has demonstrated strong growth in revenue, with a 116% increase, and profit after tax (PAT) surged by 101% for FY24.
Industry Peers and Valuation
Enviro Infra Engineers operates in a highly specialized sector, with its main competitors being:
| Company | P/E Ratio |
|---|---|
| EMS Ltd | 25.92 |
| ION Exchange Ltd | 38.68 |
| Va Tech Wabag Ltd | 43.90 |
| Vishnu Prakash R Punglia Ltd | 25.31 |
At the upper price band, the P/E ratio for Enviro Infra Engineers is 18.20, making it relatively attractive compared to its industry peers.
Should You Invest in Enviro Infra Engineers IPO?
Analysts suggest a positive outlook for the IPO due to the company’s strong revenue growth and strategic positioning in a niche market. However, potential investors should also consider the following risks:
- Competitive Industry: The water treatment sector is highly competitive, with established players dominating the market.
- High Dependence on Government Projects: The company’s revenue largely depends on winning government tenders, which can be unpredictable.
- Debt Levels: While the IPO proceeds will help reduce debt, investors should monitor the company’s financial leverage.
Investor Tip: Long-term investors with a focus on infrastructure and sustainable projects may find this IPO appealing, especially given the company’s strong growth trajectory.
Conclusion
Enviro Infra Engineers IPO presents a promising opportunity in the growing water treatment sector. The company is well-positioned for expansion with a robust project pipeline and solid revenue growth.
However, investors should carefully evaluate the risks and consider their investment horizon before subscribing.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor for personalized investment guidance.
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