Water infrastructure specialist Enviro Infra Engineers launches its IPO - is it worth your attention? The initial public offering worth ₹650.43 crores will open for subscription on November 22, 2024 and will close on November 26, 2024. The Enviro Infra Engineers Limited IPO comprises of a fresh issue of 3.87 crore shares amounting to ₹572.46 crores and an offer for sale of 0.53 crore shares worth ₹77.97 crores.
The price band for the Enviro Infra IPO has been set between ₹140 to ₹148 per share with a lot size of 101 shares. Thus the minimum investment amount for retail investors is ₹14,948. Allotment of shares is anticipated to be completed on November 27, 2024 with listing on BSE and NSE tentatively scheduled for November 29, 2024. Join the growth story today, as we unveil more investment opportunities ahead.
Enviro Infra Engineers Limited IPO is a fundraise worth ₹650.43 crores comprising fresh issue as well as offer for sale with a reservation of up to 1,00,000 shares for employees offered at a discount of ₹13 to the issue price. The IPO will be available for subscription from November 22, 2024, to November 26, 2024, providing an opportunity for investors looking to gain a stake in the water infrastructure sector.
| Enviro Infra IPO Date | November 22, 2024 - November 26, 2024 |
| Price Band | ₹140 to ₹148 per share |
| Face Value | ₹10 per share |
| Lot Size | 101 shares |
| Issue Type | Book-built issue |
| Fresh Issue | 38,680,000 shares of ₹10 per share, amounting to ₹572.46 crores |
| Offer For Sale | 5,268,000 shares of ₹10 per share, amounting to ₹77.97 crores |
| Total Issue Size | 43,948,000 shares of ₹10 per share amounting to ₹650.43 crores |
| Employee Discount | ₹13 per share |
| Listing at | BSE, NSE |
| Share Holding Post Issue | 175,530,000 |
| Share Holding Pre Issue | 136,850,000 |
The Enviro Infra Engineers Limited IPO opens for subscription on November 22, 2024, and closes on November 26, 2024, with allotment scheduled for November 27, 2024.
| IPO Open Date | November 22, 2024 (Friday) |
| IPO Close Date | November 26, 2024 (Tuesday) |
| Basis of Allotment | November 27, 2024 (Wednesday) |
| Initiation of Refunds | November 27, 2024 (Wednesday) |
| Credit of Shares to Demat Account | November 28, 2024 (Thursday) |
| Listing Date on Exchanges | November 29, 2024 (Friday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on November 26, 2024 |
Enviro Infra Engineers Limited, established in 2009, has emerged as a specialized player in water infrastructure, focusing on the design, construction, operation, and maintenance of Water and Waste-Water Treatment Plants and water supply projects for government entities. The company's comprehensive portfolio includes various treatment facilities such as Sewage Treatment Plants, Sewerage Schemes, Common Effluent Treatment Plants, and Water Treatment Plants, along with essential infrastructure like pumping stations and pipeline networks. With a successful track record of completing 28 significant projects across India in the past seven years, including 22 projects of 10 MLD capacity and above, the company has demonstrated its capability in handling large-scale water infrastructure projects.
The company's competitive edge stems from its robust in-house capabilities, supported by a team of 180 engineers and external experts, enabling efficient project execution and timely delivery. Its strengths include advanced technological implementation, growing regional presence, diversified order book across India, and consistent financial performance. The combination of experienced promoters, strong senior management, and comprehensive in-house execution capabilities has positioned the company favourably for securing and successfully delivering high-value project tenders in the water infrastructure sector.
The Company plans to allocate the Fresh Issue Proceeds across several key objectives: addressing Working Capital Requirements; providing financial support to its subsidiary EIEL Mathura Infra Engineers Private Limited for the construction of a 60 MLD Sewage Treatment Plant in Mathura, Uttar Pradesh, as part of a Hybrid Annuity Based PPP Mode project; fully or partially repaying existing outstanding borrowings; and facilitating inorganic growth through potential acquisitions while meeting general corporate needs.
The Enviro Infra Engineers Limited IPO has grabbed attention as the company reportedly saw an annual rise of 116% in its revenue and 101% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
Key performance indicators reflect the company's financial health, with a Return on Equity (ROE) at 10.07% and a Debt-to-Equity ratio of 0.95, indicating that the company relies equally on debt financing and shareholders’ equity. The RoNW stands at 9.53%, and the ROCE is seen at 8.24%. The PAT Margin as of June 30, 2024 was 15%.
| Period Ended | June 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 207.46 | 738 | 341.66 | 225.62 |
| Assets | 812.87 | 761.19 | 347.58 | 148.27 |
| Net Worth | 323 | 292.18 | 126.51 | 71.62 |
| Profit After Tax | 30.78 | 110.54 | 54.98 | 34.55 |
| Total Borrowing | 305.59 | 233.59 | 64.54 | 18.11 |
| Reserves & Surplus | 186.29 | 155.51 | 101.11 | 69.31 |
Amount in ₹ crores
The company showcases robust operational capabilities with its in-house designing, engineering, and execution teams, complemented by a strong geographic presence and diversified order book across India. Its competitive advantages include timely project delivery, advanced technology usage in Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) construction, and proven execution capabilities that enable participation in high-value project tenders. The organisation is further strengthened by experienced promoters and senior management, resulting in consistent financial performance.
The company faces several significant challenges, primarily its heavy dependence on government contracts and budgetary allocations for Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) projects. The competitive bidding process for government projects poses uncertainty in winning future contracts. Other key risks include reliance on in-house teams where employee retention is crucial, working capital intensity that could strain cash flows, and potential discrepancies between order book estimates and actual income.
The company's operations are also vulnerable to third-party dependencies in civil construction, joint venture partner performance, and potential failures in new initiatives like "Waste to Energy" projects. Additionally, fluctuations in construction material prices and labour costs could impact profitability, while failures to capitalise on government policy initiatives in the water treatment sector could hinder growth opportunities.
Being among the early public investors in Enviro Infra Engineers Limited could present an opportunity to participate in the company's growth trajectory in the water and wastewater infrastructure sector. However, investors should carefully assess multiple factors including the company's operational track record, financial health, sector dynamics, and growth strategy, while also considering their own investment objectives and risk appetite before making an investment decision. It's recommended to review the offer document and seek professional advice if needed to make an informed choice about participating in this IPO.
What is the Enviro Infra Engineers Limited IPO?
The Enviro Infra Engineers Limited IPO is a main-board offering consisting of 43,948,000 equity shares with a face value of ₹10, aiming to raise to ₹650.43 crores. The share price is set between ₹140 and ₹148, with a minimum order quantity of 101 shares. This IPO will be open for subscription from November 22, 2024, to November 26, 2024. Bigshare Services Private Limited is the registrar while Hem Securities Limited is the book-running lead manager.
When will the Enviro Infra Engineers Limited IPO open?
The Enviro Infra Engineers Limited IPO will open for subscription on November 22, 2024, and will close on November 26, 2024.
When is the Enviro Infra Engineers Limited IPO listing date?
The tentative listing date for the Enviro Infra Engineers Limited IPO is Friday, November 29, 2024.
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