The Enviro Infra Engineers IPO is a book-built issue aiming to raise ₹650.43 crores, consisting of a fresh issue of ₹572.46 crores and an offer for sale (OFS) worth ₹77.97 crores. This IPO has garnered significant attention due to the company’s robust growth in the water and wastewater management sector and its innovative approach to infrastructure projects. The Enviro Infra Engineers IPO opened for bidding on November 22, 2024, and will close on November 26, 2024.
IPO Details at a Glance
| Parameter | Details |
|---|---|
| IPO Open Date | November 22, 2024 |
| IPO Close Date | November 26, 2024 |
| Allotment Date | November 27, 2024 |
| Listing Date | November 29, 2024 |
| Price Band | ₹140 – ₹148 per share |
| Face Value | ₹10 per share |
| Total Issue Size | ₹650.43 crores |
| Fresh Issue | ₹572.46 crores |
| Offer for Sale (OFS) | ₹77.97 crores |
| Lot Size | 101 shares |
| Minimum Investment | ₹14,948 |
| Listing Platforms | BSE and NSE |
| Employee Discount | ₹13 per share |
Breakdown of the IPO Reservation
The allocation of 4.39 crore shares in the Enviro Infra Engineers IPO is spread across various investor categories:
| Category | Shares Reserved | Percentage Allocation |
|---|---|---|
| Qualified Institutional Buyers (QIB) | 87,69,600 | 19.95% |
| Non-Institutional Investors (NII) | 65,77,200 | 14.97% |
| Retail Investors (RII) | 1,53,46,800 | 34.92% |
| Anchor Investors | 1,31,54,400 | 29.93% |
| Employees | 1,00,000 | 0.23% |
The IPO includes a dedicated portion for employees with a discounted price of ₹13 per share, making it attractive for internal stakeholders.
Investment Requirements
For various investor categories, the minimum and maximum investments are as follows:
| Category | Lots | Shares | Investment (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 101 | ₹14,948 |
| Retail (Max) | 13 | 1,313 | ₹1,94,324 |
| sNII (Min) | 14 | 1,414 | ₹2,09,272 |
| sNII (Max) | 66 | 6,666 | ₹9,86,568 |
| bNII (Min) | 67 | 6,767 | ₹10,01,516 |
This structured bidding system ensures fair access for all investor categories.
Company Overview
Enviro Infra Engineers Limited, established in 2009, specializes in the design, construction, operation, and maintenance of water and wastewater treatment plants (WWTPs) and water supply projects (WSSPs). Their expertise includes:
- WWTPs: Sewage Treatment Plants (STPs), Sewerage Schemes (SS), and Common Effluent Treatment Plants (CETPs).
- WSSPs: Water Treatment Plants (WTPs), pumping stations, and pipeline installations.
Key Achievements
- Successfully completed 28 WWTPs and WSSPs by June 2024, with 22 projects exceeding a capacity of 10 MLD.
- Strong order book of ₹1,906+ crores, reflecting a growing presence in government projects.
- Advanced in-house engineering and execution capabilities supported by a skilled team of 180 engineers.
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Competitive Strengths
- In-House Expertise: A highly skilled team capable of delivering turnkey projects.
- Track Record of Growth: Consistently increasing eligibility for high-value tenders.
- Innovative Technology: Adoption of advanced methods in project execution.
- Diverse Portfolio: Presence in multiple states with a mix of large and medium-scale projects.
- Experienced Leadership: Promoters and senior management bring decades of experience in the infrastructure domain.
Financial Performance
The company has shown a significant uptick in financial performance over recent years:
| Parameter | Jun 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 207.46 | 738.00 | 341.66 | 225.62 |
| PAT (₹ Cr) | 30.78 | 110.54 | 54.98 | 34.55 |
| Net Worth (₹ Cr) | 323.00 | 292.18 | 126.51 | 71.62 |
| Borrowings (₹ Cr) | 305.59 | 233.59 | 64.54 | 18.11 |
Key Financial Ratios (As of March 31, 2024)
- Return on Equity (ROE): 51.68%
- Return on Capital Employed (ROCE): 32.34%
- Debt-to-Equity Ratio: 0.8
- PAT Margin: 15.17%
Objects of the Issue
The proceeds from the IPO will be utilized for:
- Working Capital Requirements: Ensuring smooth execution of ongoing and upcoming projects.
- Investment in Subsidiary: Financing a 60 MLD Sewage Treatment Plant under the Mathura Sewerage Scheme.
- Debt Reduction: Repaying outstanding borrowings to strengthen the financial structure.
- Growth and Expansion: Exploring acquisitions and expanding market presence.
Subscription Status
As of Day 2 (November 25, 2024), the IPO has received an overwhelming response, with an overall subscription of 9.97 times:
| Category | Subscription (x) |
|---|---|
| Retail | 7.41 |
| QIB | 2.48 |
| sNII | 23.15 |
| bNII | 27.33 |
| Employees | 11.55 |
The retail and HNI categories, in particular, have shown strong demand.
Expert Review
Industry experts have mixed opinions on the IPO valuation:
- Positive Outlook: The company’s strong growth trajectory, robust financials, and leadership in water management make it a compelling investment for long-term gains.
- Concerns: Valuation appears fully priced, and success is heavily reliant on government contracts.
Anchor Investors
The IPO raised ₹194.69 crores from anchor investors, underscoring institutional confidence in the company.
Conclusion
The Enviro Infra Engineers IPO represents a promising opportunity in the growing water management sector. While the valuation is on the higher side, the company’s strong fundamentals, experienced management, and impressive order book make it an attractive option for investors with a medium to long-term horizon.
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FAQs
What is the price band for the IPO?
The price band is set at ₹140 to ₹148 per share.
What is the minimum investment required?
Retail investors need a minimum of ₹14,948 for 101 shares.
When will the shares be listed?
The shares are expected to list on November 29, 2024.
What is the company’s area of expertise?
Enviro Infra Engineers specializes in water and wastewater treatment infrastructure projects.
Should I invest in the IPO?
Long-term investors with a focus on infrastructure and sustainability sectors may find the IPO attractive due to the company’s growth potential and financial performance.
