Enviro Infra Engineers Ltd is set to launch its initial public offering (IPO) on Friday. The company is aiming to raise Rs 650.43 crore in what would be the seventh mainboard IPO in November.
Enviro Infra Engineers IPO Details
The offering includes a fresh issue of 3.87 crore shares worth Rs 572.46 crore and an offer for sale of 0.52 crore shares valued at Rs 77.97 crore.
Retail investors can bid for a minimum of one lot, consisting of 101 shares, with the minimum investment pegged at Rs 14,948. The maximum bid limit for retail participants is 13 lots or Rs 1,94,324. The issue allocates 50% of the shares to Qualified Institutional Buyers (QIBs), 35% to retail investors, and 15% to Non-Institutional Investors (NIIs).
IPO Objectives
Funds raised will support working capital needs, debt repayment, and the development of a 60 million liters per day (MLD) sewage treatment plant in Mathura under a PPP model. The proceeds will also finance strategic acquisitions and general corporate purposes.
Enviro Infra Engineers IPO GMP
Enviro Infra IPO GMP is Rs 15 as of today.
Enviro Infra Engineers IPO Date
The IPO allotment is slated for November 27, with listing expected on November 28. Hem Securities is the lead manager, and Bigshare Services is the registrar for the issue.
Business Overview
Enviro Infra Engineers specializes in designing, building, and operating water and wastewater treatment projects. Their portfolio spans Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), and water supply systems. The company frequently collaborates with infrastructure firms through joint ventures to execute large-scale projects.
The firm benefits from India’s focus on sustainable water management initiatives like the Jal Jeevan Mission, Namami Gange, and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). Its financial performance underscores this opportunity, with revenue growing at a compound annual growth rate (CAGR) of 80.58% between FY22 and FY24.
Risks and Competition
A major portion of Enviro Infra’s revenue comes from government projects, making it vulnerable to changes in budgetary allocations. The company also faces competition from established players like VA Tech Wabag and Ion Exchange India.
