Denta Water and Infra Solutions Limited, a dynamic player in the water and infrastructure sector, is preparing for a highly anticipated market debut with an IPO valued at ₹220.50 crores. This exciting investment opportunity will be available from January 22 to January 24, 2025, offering 0.75 crore shares via a fresh issue.
With a well-structured price band of ₹279 to ₹294 per share and a lot size of 50 shares, the IPO presents an accessible entry point for retail investors, requiring a minimum investment of ₹14,700. The share allotment is set for January 27, 2025, with listings on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) expected on January 29, 2025. Don’t miss your chance to invest in a company with significant growth potential and a promising future—now is the time to consider your participation in this exciting IPO!
Denta Water and Infra Solutions Limited IPO is a fundraise worth ₹220.50 crores comprising fresh issue of 0.75 crore shares. The IPO will be available for subscription from January 22, 2025, to January 24, 2025, providing an opportunity for investors looking to gain a stake in the water and infrastructure solutions sector.
| Denta Water and Infra Solutions IPO date | January 22, 2025 - January 24, 2025 |
| Price band | ₹279 to ₹294 per share |
| Face value | ₹10 per share |
| Lot size | 50 shares |
| Issue type | Book-built issue IPO |
| Fresh issue | 75,00,000 shares amounting to ₹220.50 crores |
| Total issue size | 75,00,000 shares amounting to ₹220.50 crores |
| Listing at | BSE, NSE |
| Share holding post issue | 2,67,00,000 shares |
| Share holding pre issue | 1,92,00,000 shares |
The Denta Water and Infra Solutions Limited IPO opens for subscription on January 22, 2025, and closes on January 24, 2025, with allotment slated for January 27, 2025.
| IPO open date | January 22, 2025 (Wednesday) |
| IPO close date | January 24, 2025 (Friday) |
| Basis of allotment | January 27, 2025 (Monday) |
| Initiation of refunds | January 28, 2025 (Tuesday) |
| Credit of shares to demat account | January 28, 2025 (Tuesday) |
| Listing date on exchanges | January 29, 2025 (Wednesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 24, 2025 (Friday) |
Founded in 2016, Denta Water and Infra Solutions Limited is an emerging player in the water and infrastructure solutions sector, specializing in the design, installation, and commissioning of water management infrastructure projects. With a focus on groundwater recharge projects, the company offers expertise in water engineering and EPC services. Notably, Denta Water has contributed to Bengaluru's wastewater management and supported the Government’s Jal Jeevan Mission through key projects like Byrapura, Hiremagaluru LIS, and KC Valley.
Beyond its water management services, which include feasibility studies, project planning, design services, and turnkey projects, the company also has diversified interests. It owns 98 acres of land in Madikeri, Karnataka, where it cultivates coffee, pepper, and cardamom, and operates a beach resort in Udupi, generating revenue through a facility management agreement. As of November 30, 2024, Denta Water has successfully completed 32 water management projects, including 11 as the main contractor and 1 in a joint venture, and also works on construction projects for railways and highways. The company employs 89 permanent staff members.
The Company plans to use the net proceeds from the issue to fund its working capital requirements and for general corporate purposes, in accordance with applicable laws.
The Denta Water and Infra Solutions Limited IPO showcases a healthy market capitalization of ₹784.98 crores. The key performance indicators, as on March 31, 2024, reflect the company's financial health, with a Return on Equity (RoE) of 36.36%, Return on Capital Employed (RoCE) of 76.99%, and Debt-to-Equity ratio of 0.01.
The Return on Net Worth (RoNW) stands at 36.36%, while the Price-to-Book Value (P/BV) is seen at 5.01. The PAT Margin is 25.03. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹31.11 while it is ₹18.13 post-IPO. Similarly, the pre-IPO price to earnings ratio (P/E) is 9.45 and will be 16.22 post-IPO.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 98.51 | 241.84 | 175.75 | 119.64 |
| Assets | 220.35 | 219.85 | 123.28 | 60.64 |
| Net Worth | 188.46 | 164.26 | 104.55 | 54.43 |
| Profit After Tax | 24.20 | 59.73 | 50.11 | 38.34 |
| Reserves & Surplus | 169.26 | 145.06 | 99.74 | 49.63 |
| Total Borrowing | 0.71 | 0.86 | 1.15 | - |
Amount in ₹ crores
Denta Water and Infra Solutions Limited boasts significant expertise in water management projects, particularly in groundwater recharge and lift irrigation systems. The company has a strong reputation for executing projects efficiently, having completed 32 water management projects to date, and maintains an impressive order book valued at ₹7,524.51 million. Its in-house design and engineering team, combined with an asset-light business model, allows it to focus on core competencies while outsourcing non-essential tasks to specialized subcontractors. This enables the company to minimize operational risks and optimize execution. The management team, with extensive experience in water infrastructure, further strengthens the company’s strategic direction and operational effectiveness.
Additionally, Denta Water's involvement in government initiatives, including the Jal Jeevan Mission, highlights its alignment with sustainability goals and growing demand for eco-friendly water solutions. The company’s order book is bolstered by strong partnerships with government bodies, providing long-term revenue visibility. Denta Water also has plans to expand into new regions, such as Gujarat, Madhya Pradesh, and Maharashtra, which offers promising growth opportunities. Its solid track record, technological capabilities, and sustainability focus position it well within the competitive water management and infrastructure sector.
Despite its strengths, Denta Water faces several risks tied to its operational scale and market concentration. A significant portion of its revenue comes from government contracts, particularly the Government of Karnataka, which exposes the company to policy changes, delays, and budgetary constraints. This dependency, coupled with the concentration of projects in Karnataka, limits geographic diversification and increases vulnerability to regional economic fluctuations. The company’s reliance on competitive tendering also adds unpredictability to its revenue streams, as the timing and success of securing new contracts are outside its control.
Furthermore, Denta Water is dealing with several legal and regulatory challenges, including ongoing lawsuits involving its promoters. These legal proceedings could have a negative impact on the company’s reputation and financial stability if adverse outcomes occur. The company also faces operational challenges, such as delays in completing projects, which could lead to cost overruns, penalties, and damaged client relationships. Additionally, high attrition rates among key managerial personnel and its reliance on subcontractors for certain project phases may further disrupt its operations and affect long-term stability. These weaknesses, combined with the competitive pressures and supply chain risks, could impede the company’s growth and financial performance.
The Denta Water and Infra Solutions Limited IPO presents an attractive opportunity for investors to enter the water and infrastructure solutions sector at an early stage. However, making a sound investment decision requires careful analysis of the company’s fundamentals, market position, and growth potential. Potential investors should conduct thorough research to ensure this opportunity aligns with their financial goals and risk appetite, turning a promising prospect into a well-informed, strategic investment decision.
What is the Denta Water and Infra Solutions IPO?
The Denta Water and Infra Solutions Limited IPO is a main-board offering consisting entirely of a fresh issue of 0.75 crore equity shares with a face value of ₹10 per share, aiming to raise ₹220.50 crores. The share price is set between ₹279 and ₹294, with a minimum order quantity of 50 shares. This IPO will be open for subscription from January 22, 2025, to January 24, 2025. Integrated Registry Management Services Private Limited is the registrar while SMC Capitals Limited is the book-running lead manager.
When will the Denta Water and Infra Solutions IPO open?
The Denta Water and Infra Solutions Limited IPO will open for subscription on January 22, 2025, and will close on January 24, 2025.
When is the Denta Water and Infra Solutions IPO listing date?
The tentative listing date for the Denta Water and Infra Solutions Limited IPO is Wednesday, January 29, 2025.
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