Envirotech Systems IPO sees massive 92x subscription on the final day, boosted by NIIs

Envirotech Systems Limited's IPO received overwhelming demand, particularly from non-institutional investors (NIIs), leading to a subscription of nearly 92 times on the final day of bidding, September 19, 2024. The IPO, valued at ₹30.24 crore, offered a price band of ₹53-₹56 per share.

Breakdown of subscription categories

Envirotech’s IPO saw strong interest across various investor categories, highlighting its potential as a promising option to invest in IPO:

• Retail investors: Subscribed 64.16 times, with bids for 10.56 crore shares against 16.46 lakh shares reserved for the category.
• Non-institutional investors (NIIs): Dominated the scene, applying for 13.28 crore shares, resulting in a staggering 188.13 times subscription for their allocated 7.06 lakh shares.
• Qualified institutional buyers (QIBs): They showed steady interest, with their portion subscribed 68.11 times. They bid for 6.4 crore shares against 9.4 lakh shares.

Envirotech IPO details

The company’s IPO comprised 54 lakh shares, and the objective is to raise funds for expansion, including purchasing land, setting up a factory, and funding working capital needs. Envirotech’s shares are scheduled to be listed on the NSE SME platform on September 24, and successful bidders will receive shares in their Demat accounts by September 20.

For investors looking to invest in an IPO, Envirotech Systems offers a solid opportunity, given its strategic expansion plans and its focus on noise measurement and control solutions for industrial and commercial sectors.

What made the IPO so popular?

The overwhelming response, especially from NIIs, reflects strong confidence in Envirotech Systems’ future growth. The company, which provides noise control solutions, has a strong foothold in sectors like oil and gas, power generation, and automotive. This diversified client base and robust order pipeline make it an attractive option for those looking to invest in IPO offerings that promise long-term growth.

Additionally, the relatively small size of the IPO and the company's sound business model contributed to the high demand. The focus on expansion and diversification through the IPO proceeds adds value to investors who are keen on share market investment in emerging industrial sectors.

Invest safely

The remarkable 92x subscription on the final day of Envirotech Systems’ IPO, primarily driven by non-institutional investors, signals strong market confidence in the company’s prospects. For those looking to invest in IPO opportunities with growth potential, Envirotech presents a compelling case. 

With its shares expected to list on September 24, it remains to be seen how the stock performs post-listing, but the high demand indicates a positive outlook for the company and its investors.