Envirotech Systems Limited, a notable name in the acoustic insulation sector, is set to launch its IPO on the NSE SME platform. This offering is a significant opportunity for investors looking to participate in an industry with immense growth potential.
With a total issue size of ₹30.24 crores, this IPO promises to garner attention from retail and high-net-worth investors. This article explores the Envirotech Systems Limited IPO, including the company's background, financials, and the strengths and challenges for investors to consider.
Envirotech Systems Limited's IPO is a book-built issue comprising entirely fresh shares. The company aims to raise ₹30.24 crores by issuing 5.4 million shares at a price band of ₹53 to ₹56 per share. The subscription period will run from September 13, 2024, to September 17, 2024. The listing will occur on the NSE SME platform, making this one of the upcoming IPOs to invest in within the SME segment.
To better understand the Envirotech Systems Limited IPO details, here's a summary:
| Particulars | Details |
| IPO opening date | September 13, 2024 |
| IPO closing date | September 17, 2024 |
| Price band | ₹53 to ₹56 per share |
| Lot size | 2000 shares |
| Total issue size | 5,400,000 shares (₹30.24 crores) |
| Fresh issue | 5,400,000 shares (₹30.24 crores) |
| Face value | ₹10 per share |
| Listing platform | NSE SME |
| Market maker | Share India Securities |
For retail investors, the minimum investment is ₹112,000, while high-net-worth individuals (HNIs) must invest at least ₹224,000.
The timeline for the IPO is crucial for investors looking to apply early and follow the subsequent phases. Below is a table highlighting key Envirotech Systems Limited IPO dates:
| Event | Dates (Tentative) |
| Envirotech Systems Limited IPO open date | September 13, 2024 |
| Envirotech Systems Limited IPO close date | September 17, 2024 |
| Basis of shares allotment | September 18, 2024 |
| Initiation of refunds | September 19, 2024 |
| Credit of shares to demat accounts | September 19, 2024 |
| IPO listing date | September 20, 2024 |
Investors should ensure they confirm UPI mandates by the cut-off time on September 17, 2024, to avoid missing the allotment.
Founded in 2007, Envirotech Systems Limited has built a solid reputation for delivering noise control solutions. Their product portfolio includes acoustic enclosures, noise barriers, and custom-engineered noise reduction systems, serving a broad spectrum of industries. Envirotech Systems ensures its products meet high standards of reliability and performance through innovation and rigorous testing, making it an appealing opportunity to invest in IPO.
The financial performance of Envirotech Systems has been impressive, with substantial growth in revenue and profits. Between FY 2023 and FY 2024, revenue surged by 63%, while profit after tax (PAT) rose by an astounding 344%. Below is a snapshot of the company's financials:
| Financial metrics | FY 2024 (₹ lakhs) | FY 2023 (₹ lakhs) | FY 2022 (₹ lakhs) |
| Assets | 3,867.47 | 2,275.73 | 1,386.51 |
| Revenue | 4,687.95 | 2,874.78 | 1,849.54 |
| Profit after tax (PAT) | 1,142.88 | 257.34 | 105.73 |
| Net worth | 1,960.62 | 661.73 | 404.40 |
| Reserves and surplus | 621.62 | 611.73 | 354.40 |
With a market capitalisation of ₹105.22 crores as of March 31, 2024, Envirotech Systems is positioned well in its sector, with strong financials to back its IPO.
The Envirotech Systems Limited IPO SME offers a unique opportunity to invest in a company with a strong track record in the industrial noise control solutions market. With solid financial growth, a focus on R&D, and a clear competitive edge, Envirotech Systems is well-positioned for future success.
That being said, the company’s reliance on specific industries and the niche nature of its market present certain risks. Investors should also consider the IPO’s grey market premium (GMP) and review its performance before making a final decision. The Envirotech Systems Limited IPO GMP can provide valuable insights into market sentiment and demand for the shares.
The Envirotech Systems Limited IPO is a noteworthy entry in the upcoming IPOs to invest in, offering growth potential in a specialised sector. With its impressive financials, experienced leadership, and strong R&D focus, the company presents an attractive bid for investors seeking to diversify their portfolios. However, as with any investment, it’s important to conduct thorough due diligence and assess both the strengths and challenges before deciding to invest in this IPO.
As of March 2024, Envirotech Systems Limited reported a total revenue of ₹4,687.95 lakh, representing a 63% growth from the previous year. Their profit after tax (PAT) increased significantly, growing by 344% year-on-year, reflecting strong financial performance.
Envirotech Systems Limited has several strengths, including its early entry into the industrial noise control market, a strong R&D focus, an experienced management team, and a well-established client base. These factors position the company well for future growth.
The Envirotech Systems Limited IPO GMP is an indication of market sentiment and the demand for shares in the grey market before the listing. While the exact GMP fluctuates, it can offer investors insight into the potential performance of the stock post-listing. It’s important to keep an eye on financial platforms that track the GMP for the most up-to-date information.
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