Enviro Infra Engineers Limited is launching its initial public offering (IPO) to raise ₹650.43 crore, combining a fresh issue and an offer for sale (OFS). The IPO opens for subscription on November 22, 2024, and closes on November 26, 2024. Here’s an in-depth look at the IPO details, financials, and other critical aspects for potential investors.

Issue Details

• Total Issue Size: 4.39 crore shares, aggregating ₹650.43 crore.
• Fresh Issue: 3.87 crore shares (₹572.46 crore).
• Offer for Sale (OFS): 0.53 crore shares (₹77.97 crore).
• Price Band: ₹140 to ₹148 per share.
• Face Value: ₹10 per share.
• Lot Size: 101 shares and in multiples thereafter.

Investment Requirements:

• Retail Minimum Investment: ₹14,948 for one lot (101 shares).
• sNII Minimum Investment: ₹2,09,272 (14 lots).
• bNII Minimum Investment: ₹10,01,516 (67 lots).

Listing: The company’s shares will list on both BSE and NSE, with a tentative listing date of November 29, 2024.

Reservation Details

Enviro Infra Engineers IPO has allocated shares to various categories as follows:

• Anchor Investors: 29.93% (1.31 crore shares).
• Qualified Institutional Buyers (QIB): 19.95% (87.7 lakh shares).
• Non-Institutional Investors (NII): 14.97% (65.8 lakh shares).
  • bNII (>₹10L): 9.98%.
  • sNII (<₹10L): 4.99%.
• Retail Investors (RII): 34.92% (1.53 crore shares).
• Employees: 0.23% (1 lakh shares), with a discount of ₹13 per share.

Timeline of the IPO

About Enviro Infra Engineers Limited

Founded in 2009, Enviro Infra Engineers specializes in the design, construction, operation, and maintenance of water and wastewater treatment plants (WWTPs) and water supply projects (WSSPs). Their portfolio includes:

• Sewage Treatment Plants (STPs).
• Common Effluent Treatment Plants (CETPs).
• Water Treatment Plants (WTPs).
• Pipeline Laying and Pumping Stations.

The company has successfully delivered 28 projects across India, including 22 projects of 10 MLD or higher capacity. They primarily serve government agencies and urban local bodies (ULBs), participating in tenders on an EPC or HAM basis.

Strengths of Enviro Infra Engineers

1. In-House Expertise: The company boasts a team of 180 engineers and a proven track record of timely project delivery.
2. Diversified Order Book: Their projects span multiple states, reducing dependence on any one region.
3. Technological Edge: Advanced methods are used in constructing and installing WWTPs and WSSPs.
4. Financial Growth: Revenue grew 116% between FY23 and FY24, while PAT rose by 101%.
5. Promoters’ Experience: The company is led by experienced promoters and senior management.

Financial Performance

The company’s financials reflect robust growth:

Objectives of the Issue

The proceeds from the fresh issue will be utilized for:

1. Working Capital Requirements.
2. Investment in Subsidiary: Funds will be infused into EIEL Mathura Infra Engineers for a 60 MLD STP project under the Mathura Sewerage Scheme in Uttar Pradesh.
3. Debt Repayment: Reduction of certain borrowings.
4. Inorganic Growth: Financing acquisitions and other corporate purposes.

Key Metrics

• Market Capitalization: ₹2,597.84 crore.
• P/E Ratio: Pre-IPO: 18.32x, Post-IPO: 21.1x.
• ROE: 51.68%.
• ROCE: 32.34%.
• PAT Margin: 15.17%.
• Debt-to-Equity: 0.8.

Anchor Investors and Subscription Status

The IPO raised ₹194.69 crore from anchor investors on November 21, 2024, offering 1.31 crore shares. By the first day of bidding, the issue was subscribed 0.27 times, with strong participation from retail and employee categories.

Should You Invest?

Enviro Infra Engineers is well-positioned in the water and wastewater infrastructure sector, with a strong financial track record and a diversified project pipeline. While the issue appears fully priced, its growth potential and proven execution capabilities make it an attractive opportunity for long-term investors.

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