September 24, 2024
New Delhi, India
Envirotech Systems’ IPO
Envirotech Systems’ IPO saw an impressive debut on the NSE SME exchange on Tuesday, September 24. The stock opened at ₹106.40, reflecting a 90% premium over its issue price of ₹56 per share. Following the stellar opening, the stock quickly surged to hit its 5% upper price band of ₹111.70, surpassing market expectations.
Grey Market Predictions Surpassed
The grey market premium (GMP) had indicated a debut at an 84% premium, but Envirotech’s actual listing exceeded these predictions, reflecting strong investor confidence and market sentiment.
IPO Subscription and Details
Envirotech Systems’ IPO, which opened for subscription from September 13 to September 19, 2024, saw robust demand, being subscribed nearly 92 times. The retail investor category was subscribed 64 times, while the non-institutional buyers’ segment saw an overwhelming subscription of 187 times.
The ₹30.24 crore public offer consisted of 54 lakh fresh shares, with a price band set between ₹53 and ₹56 per share.
Use of IPO Proceeds
The funds raised will be used for purchasing land and buildings to set up a new factory, meeting working capital needs, covering general corporate expenses, and handling issue-related costs.
Company Overview and Financial Performance
Envirotech Systems specializes in manufacturing acoustic products and providing noise measurement and control solutions tailored to industrial and commercial applications. The company’s products are customized to meet specific client demands for optimal noise control.
Financially, Envirotech Systems has shown significant growth. Profit after tax (PAT) rose from ₹1.06 crore in FY22 to ₹2.57 crore in FY23, and further to ₹11.43 crore in FY24. Net revenue also increased from ₹18.11 crore in FY22 to ₹46.24 crore in FY24, highlighting the company’s rapid expansion.
Envirotech Systems’ successful IPO debut reflects strong investor confidence, driven by the company’s growth prospects and specialized product offerings.
Also Read: India’s Business Activity Growth Slows in September: HSBC Flash PMI Report
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