November 29, 2024
New Delhi, India
IPO
Enviro Infra Engineers Ltd. officially debuted on the stock exchanges today, November 29, 2024, after a highly successful IPO subscription. The company’s shares opened at ₹220 on NSE (48.6% premium) and ₹218 on BSE (47.3% premium) against the issue price of ₹148.
However, the stock slipped into red during the trading session, reflecting market volatility.
Strong Subscription Response
- IPO Size: ₹650 crore
- Price Band: ₹140-₹148 per share
- Subscriptions:
- Qualified Institutional Buyers (QIBs): 157.05 times
- Non-Institutional Investors (NIIs): 153.80 times
- Retail Individual Investors (RIIs): 24.48 times
The IPO raised ₹195 crore from anchor investors ahead of the listing.
Company Overview
Enviro Infra Engineers specializes in:
- Water & Wastewater Treatment Plants (WWTPs), including sewage treatment plants and common effluent treatment plants.
- Water Supply Scheme Projects (WSSPs) for government bodies.
The company has witnessed remarkable financial growth:
- Revenue CAGR: 80.6%, growing from ₹224 crore in FY22 to ₹729 crore in FY24.
- Order Book: Increased from ₹170 crore to ₹2,126 crore over the same period.
- Average EPS: ₹5.95
- Average RoNW: 41.44%
Fund Utilization
The proceeds from the IPO will be used for:
- Working capital requirements
- Debt repayment
- Funding a subsidiary, EIEL Mathura Infra Engineers, for the Mathura Sewerage Scheme
Expert Recommendations
- Short-term investors: Analysts recommend booking profits if the premium exceeds 25% due to market uncertainty.
- Long-term investors: Encouraged to hold shares, given the company’s strong fundamentals and growth prospects.
- New investors: Suggested to consider buying on dips.
The robust IPO subscription and premium listing reflect strong investor confidence in Enviro Infra Engineers’ potential, driven by its critical role in India’s growing water infrastructure sector. Long-term prospects remain optimistic, supported by the company’s expanding order book and consistent financial performance.
Disclaimer:
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