₹665-701 Price Band: Concord Enviro IPO Opens Today

Concord Enviro Systems, a leading provider of water and wastewater treatment solutions, has launched its Initial Public Offering (IPO) today, aiming to raise ₹500.33 crore. The IPO, which opened for subscription on December 19, 2024, comprises a fresh issue of ₹175 crore and an offer for sale of ₹325.33 crore. The price band for the IPO is set between ₹665 and ₹701 per share, with a minimum lot size of 21 shares. The IPO witnessed a moderate response on the first day, with 0.31 times subscription. The grey market premium currently stands at ₹70, indicating potential listing gains.

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₹665-701 Price Band: Concord Enviro IPO Opens Today

Concord Enviro IPO launches today

₹665-701 Price Band: Concord Enviro IPO Opens Today Concord Enviro Systems Limited is set to launch its Initial Public Offering (IPO) to raise Rs 500.33 crores. The IPO will consist of a fresh issue of 0.25 crore shares worth Rs 175 crores and an offer for sale of 0.46 crore shares totaling Rs 325.33 crores. The subscription window for the IPO opens on December 19, 2024, and closes on December 23, 2024. The price band is set between Rs 665 and Rs 701 per share, with a minimum lot size of 21 shares.

The IPO allotment will be finalized on December 24, 2024, and the listing is scheduled for December 27, 2024, on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Currently, the Grey Market Premium (GMP) stands at Rs 0, indicating no anticipated gain upon listing.

Proceeds from the IPO will be used to fund capital expenditures for a greenfield project aimed at developing an assembly unit for systems and plants related to water, wastewater, and membrane treatment. Concord Enviro, founded in 1999, is a global provider of water and wastewater treatment solutions.

₹665-701 Price Band: Concord Enviro IPO Opens Today Concord Enviro Systems is set to launch its Initial Public Offering (IPO) on December 19, 2024, with the aim of raising ₹500.32 crore. The IPO will consist of a fresh issue of ₹175 crore and an offer-for-sale (OFS) of up to 46.4 lakh equity shares, totaling ₹325.32 crore. The price band for the IPO is set between ₹665 and ₹701 per share, and investors can bid for a minimum of 21 shares, in multiples thereafter. The subscription window will remain open until December 23, 2024.

The IPO proceeds will be used to invest in the company’s subsidiaries, fund capital expenditure, enhance technology, support growth initiatives for market expansion, and for general corporate purposes. The anchor book opens on December 18, 2024.

The IPO allocation is as follows: 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. Shares will be listed on the BSE and NSE on December 27, 2024.

Concord Enviro Systems, founded in 1999, is a global leader in water and wastewater treatment, specializing in innovative solutions like zero-liquid discharge (ZLD) technology. The company serves industries across sectors such as pharmaceuticals, chemicals, food and beverages, defense, automotive, steel, and textiles, with clients in regions including North America, Latin America, Africa, the Middle East, and Southeast Asia. The company operates manufacturing facilities in India and the UAE.

For the financial year 2023-24, the company reported a net profit of ₹41.44 crore on a revenue of ₹512.27 crore. For the five months ending August 31, 2024, it posted a net profit of ₹0.52 crore on a revenue of ₹208.02 crore.

Motilal Oswal Investment Advisors and Equirus Capital are the lead managers for the IPO, with Link Intime India serving as the registrar.

₹665-701 Price Band: Concord Enviro IPO Opens Today The Concord Enviro IPO opens today, December 19, 2024, and is set to raise a total of ₹500.33 crore. The IPO is a book-built issue, consisting of a fresh issue of ₹175 crore (0.25 crore shares) and an offer-for-sale (OFS) of ₹325.33 crore (0.46 crore shares). The subscription window will close on December 23, 2024.

The company has already raised ₹150.10 crore from anchor investors, signaling strong market interest. Concord Enviro, founded in 1999, specializes in water and wastewater treatment solutions, including advanced zero-liquid discharge (ZLD) technology. It serves a diverse global customer base, exporting services to regions like North America, Latin America, Africa, the Middle East, and Southeast Asia. It has manufacturing facilities in Vasai, India, and Sharjah, UAE.

For retail investors, the minimum lot size is 21 shares, requiring an investment of ₹14,721. The maximum lot size for retail investors is 273 shares, costing ₹1,91,373. Small High Net-Worth Individuals (S-HNIs) need to apply for 294 shares, while Big High Net-Worth Individuals (B-HNIs) must apply for 1,428 shares.

The funds raised from the IPO will be used for capital expenditure, supporting greenfield projects, expanding manufacturing facilities, reducing debt, and enhancing technology. The company also plans to invest in its subsidiaries and joint ventures to foster growth in its pay-per-use wastewater treatment business.

The IPO allotment is expected to be finalized on December 24, 2024, with the listing scheduled for December 27, 2024, on both BSE and NSE. The IPO’s Grey Market Premium (GMP) is ₹70, indicating a potential listing gain of around 9.99%.

Financial analysts recommend subscribing to the IPO with a long-term perspective, citing the company’s strong financial performance, market position, and growth prospects in the expanding industrial wastewater treatment sector. The global market for industrial wastewater recycling is expected to grow at a compound annual growth rate (CAGR) of 8.3%, creating significant opportunities for Concord Enviro’s growth.

₹665-701 Price Band: Concord Enviro IPO Opens Today The Concord Enviro IPO opened for public subscription today, December 19, 2024, with a price band set between ₹665 and ₹701 per share. By 12:30 PM on the first day, the IPO had received 0.31 times the subscription, with bids for 15,57,234 shares against the 50,15,356 shares on offer. The retail category saw a 0.56 times subscription, while the non-institutional category (NII) had a 0.13 times subscription.

As of today, the unlisted shares of Concord Enviro are trading at ₹771 in the grey market, reflecting a premium of ₹70 (9.99%) above the upper price band of ₹701, indicating a positive listing gain for investors expected on December 27.

The IPO consists of a fresh issue of ₹175 crore and an Offer-for-Sale (OFS) of 46.41 lakh equity shares valued at ₹325.33 crore. The total issue size amounts to ₹500.33 crore. The company aims to use the proceeds for expanding its water treatment systems, supporting working capital, and funding technology upgrades, among other initiatives.

At the upper price band, Concord Enviro’s market capitalization is estimated at ₹1,450 crore. The issue reserves 50% for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.

The IPO is scheduled to close on December 23, with the allotment expected on December 24 and the listing on December 27, 2024. Motilal Oswal Investment Advisors and Equirus Capital are the book-running lead managers for the issue.