Enviro Infra Engineers IPO Opens November 22: GMP, Key Details, and Expert Review - Read Now

Enviro Infra Engineers Limited, a leading company specializing in water and wastewater treatment projects, is all set to launch its IPO on November 22, 2024. The company aims to raise funds to boost working capital, repay debts, and support its subsidiary’s infrastructure projects. With a grey market premium (GMP) of ₹31, investors are keenly watching the IPO’s potential.

Enviro Infra Engineers IPO Key Highlights

1. IPO Dates and Price Band

• Opening Date: November 22, 2024
• Closing Date: November 26, 2024
• Price Band: ₹140 to ₹148 per equity share
• Lot Size: 101 equity shares and multiples thereof

2. IPO Structure and Objectives

The IPO includes a fresh issue of 3.87 crore equity shares and an offer for sale of 52.68 lakh shares by promoters.
Objectives of the IPO:

• Fund working capital requirements.
• Support the construction of a 60 MLD STP under the Mathura Sewerage Scheme.
• Repay existing debt of ₹305 crore.
• General corporate purposes and potential acquisitions.

3. Financial Performance

Enviro Infra Engineers has demonstrated robust financial growth:

• FY24: Revenue of ₹738 crore and net profit of ₹108.57 crore.
• FY23: Revenue of ₹341.66 crore and net profit of ₹55.34 crore.
• FY22: Revenue of ₹225.62 crore and net profit of ₹34.55 crore.

The Q1 FY25 results (ending June 30, 2024) also highlight a net profit of ₹29.97 crore and revenue of ₹207.46 crore, indicating sustained growth.

4. Grey Market Premium (GMP)

The IPO's GMP is currently ₹31, suggesting a listing price of ₹179 per share, approximately 20.95% higher than the upper price band of ₹148. This reflects strong investor interest, with the grey market showing an upward trend over the last four sessions.

5. Order Book and Operations

As of June 30, 2024, the company’s order book includes 21 water and wastewater treatment projects worth ₹1,90,628.06 lakh. With 28 projects completed since 2017, including 22 with capacities of over 10 MLD, Enviro Infra Engineers has a proven track record in delivering complex infrastructure solutions.

6. Peer Comparison

The company’s listed peers include:

• EMS Ltd: P/E of 25.92
• ION Exchange Ltd: P/E of 38.68
• Va Tech Wabag Ltd: P/E of 43.90
• Vishnu Prakash R Punglia Ltd: P/E of 25.31

At an estimated post-IPO P/E of 21.67, Enviro Infra Engineers appears reasonably priced compared to its peers.

7. Promoters and Stakeholders

Promoters Sanjay Jain, Manish Jain, Ritu Jain, and Shachi Jain currently hold 99.97% of the pre-offer equity capital, amounting to 3,70,94,280 shares.

Enviro Infra Engineers IPO Review: Should You Subscribe?

Market experts have offered mixed but optimistic reviews of the IPO. Bajaj Broking notes the company’s strong growth trajectory and financial performance, with an average RoNW of 41.44% over the last three fiscal years. However, concerns over its ₹305 crore debt persist.

Key Insights:

• The IPO’s price-to-book value (P/BV) is 6.27 based on a NAV of ₹23.60 (June 30, 2024), dropping to 2.90 post-IPO.
• Analysts recommend subscribing for long-term gains, considering the company’s focus on essential infrastructure and its competitive valuation.

Subscription Details

• Reservations:
  • 50% for Qualified Institutional Buyers (QIBs).
  • 15% for Non-Institutional Investors (NIIs).
  • 35% for Retail Investors.
• Employee Discount: ₹13 per share for eligible employees, with up to 1,00,000 equity shares reserved.

IPO Listing Date

The shares will be listed on the BSE and NSE on November 29, 2024. Share allocation and refunds will be processed on November 27, with shares credited to demat accounts by November 28.

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