The ₹650-crore IPO of Enviro Infra Engineers witnessed strong subscription numbers through its three-day bidding process.
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The three-day issue was subscribed nearly 90 times at close, with the qualified institutional portion (QIB) being booked 157 times the total shares on offer for them. The Non-Institutional Portion (NII) too was subscribed 153.80 times the shares on offer for them, while the retail portion saw subscription of 24.5 times.
WHAT DOES LATEST GMP SUGGEST?
The grey market premium (GMP) for Enviro Infra Engineers IPO has taken a big jump and surged to ₹57 from the earlier premium of ₹41 a few days earlier.
With the IPO’s upper price band set at ₹148, the projected listing price stands at ₹205, which is calculated by adding the GMP to the cap price. This implies a potential gain of almost 38.51% per share from the upper price band.
WHAT DO EXPERTS RECOMMEND?
Considering all the parameters, including its subscription demand and an improve in market sentiments, the stock can debut with a healthy listing gain of around 15-25% range on its issue price, said Prashanth Tapse of Mehta Equities.
Tapse recommended allotted conservative investors to book profits over and above 25% due to the ongoing market volatility.
“While long term investors should consider the company to hold it for long term despite knowing short term volatility and risk in the markets. For non-allotted investors, we advise to accumulate if we get dips post listing,” he said.
Given the strong investor interest, robust fundamentals, and positive market sentiment, Shivani Nyati of Swastika Investmart expects the stock to list with a significant premium of around 35%. However, Nyati said the actual listing performance could be influenced by broader market conditions. Long-term performance will depend on the company’s ability to execute projects efficiently, manage costs, and adapt to evolving industry dynamics.
ENVIRO INFRA ENGINEERS IPO DETAILS
The IPO of Enviro Infra Engineers, which was open for subscription from November 22 to November 26, had a fixed price band of ₹140-148 per share. Through this offering, Enviro Infra has raised ₹650 crore.
The proceeds from the fresh issue to the tune of ₹181 crore will be utilised to meet the working capital requirements, ₹100 crore for payment of debt, ₹30 crore will be infused into the company’s subsidiary, EIEL Mathura Infra Engineers, to build 60 million litres per day Sewage Treatment Plant (STP) at Mathura in Uttar Pradesh.
At present, promoters hold over 93% stake in Enviro Infra Engineers.
Enviro Infra Engineers was established in 2009 and is engaged in the design, construction, operation, and maintenance of water and Waste-Water Treatment Plants (WWTPs) and water supply projects (WSSPs) for government agencies or entities.
The company’s revenue increased by 116% and profit after tax (PAT) rose by 101% between the financial year ending with March 31, 2024 and March 31, 2023.
Hem Securities Ltd acted as the book running lead manager of the Enviro Infra Engineers IPO, while Bigshare Services Pvt Ltd was the registrar.
