Enviro Infra IPO OverSubscribed 4.32 Times: Strong Investor Interest and High GMP

Enviro Infra IPO OverSubscribed 4.32 Times: Strong Investor Interest and High GMP

Enviro Infra IPO OverSubscribed 4.32 Times: Strong Investor Interest and High GMP

Enviro Infra Engineers IPO is oversubscribed 4.32 times on Day 2. Strong demand from all investor categories, especially non-institutional investors. The high GMP of ₹51 indicates positive market sentiment.

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Enviro Infra IPO OverSubscribed 4.32 Times: Strong Investor Interest and High GMP
Enviro Infra IPO OverSubscribed 4.32 Times: Strong Investor Interest and High GMP

Enviro Infra IPO OverSubscribed 4.32 Times: Strong Investor Interest and High GMP

IPO, strong interest, high GMP, positive sentiment, long-term potential

Enviro Infra IPO OverSubscribed 4.32 Times The Enviro Infra Engineers IPO, which opened on November 22 and will close on November 26, has garnered strong interest from investors. By Day 2, the public offering was subscribed 7.54 times, with the retail portion subscribed 5.75 times, the non-institutional investors (NII) segment 19.02 times, and the qualified institutional buyers (QIB) segment 2.05 times.

The IPO’s Grey Market Premium (GMP) has risen significantly, currently standing at ₹53, up from ₹31 on Friday, reflecting a strong sentiment towards the offering. Over the past few days, the GMP has climbed from ₹23 to ₹53, signaling positive market momentum.

Regarding the IPO’s valuation, Indsec Securities noted that at an upper price band of ₹148, the company is valued at an FY24 EV/EBITDA of 16.7x, slightly higher than its peers’ average of 14.6x. Despite this, the company has shown robust growth in revenue, EBITDA, and PAT, with a compound annual growth rate (CAGR) of 115.6%, 107.3%, and 101.1%, respectively, from FY22 to FY24. The company’s order book remains strong at ₹19,063 million, offering revenue visibility for over 30 months. However, subdued tendering activity due to the general election is expected to pick up later in FY25. Indsec Securities recommends subscribing to the IPO for the long term.

Swastika Investment also supports the IPO, highlighting the company’s expansion with new projects and a strong order book. They believe the IPO is reasonably priced compared to its peers, making it a favorable long-term investment opportunity.

 

IPO subscribed, strong demand, anchor investor interest, funds for growth, wastewater treatment focus

Enviro Infra IPO OverSubscribed 4.32 Times The Enviro Infra Engineers IPO has entered its second day with strong investor interest, as all categories of investors showed significant demand on the first day. The IPO was subscribed twice on Day 1, with the Qualified Institutional Buyers (QIB) portion subscribed 2 times, High Net-Worth Individuals (HNIs) 3 times, retail investors 1.7 times, and employees 3.17 times.

The offering, priced between ₹140-148 per share, received bids for 6.39 crore shares against the 3.08 crore shares on offer. The ₹650.43-crore IPO consists of a fresh issue of ₹572.46 crore and an Offer for Sale (OFS) of ₹77.97 crore, with promoters offering 52.68 lakh shares. Promoters currently hold over 93% of the company’s stake.

The issue is divided into categories, with 50% reserved for QIBs, 35% for retail investors, and 15% for non-institutional investors. Employees also have a special reservation with a ₹13 per share discount.

Enviro Infra raised approximately ₹195 crore from anchor investors before the IPO opened. Among the anchor investors are Quant Mutual Fund, Motilal Oswal Mutual Fund, and LIC Mutual Fund, with over 1.31 crore shares allocated to 22 funds at ₹148 each.

The funds raised through the fresh issue will be used for working capital, debt repayment, and investment in the company’s subsidiary, EIEL Mathura Infra Engineers, for a sewage treatment plant project in Mathura, Uttar Pradesh.

Enviro Infra Engineers specializes in designing, constructing, and maintaining water and wastewater treatment plants and water supply projects for government bodies, with a focus on zero liquid discharge systems for treated water use in various industries.

 

IPO oversubscribed, strong demand, water treatment focus, funds for growth, multiple investor interest

Enviro Infra IPO OverSubscribed 4.32 Times The Enviro Infra Engineers IPO has seen strong demand as it enters Day 2, with the offering fully subscribed on Day 1. The IPO, which aims to raise funds for working capital and growth, was subscribed 2.08 times by the end of the first day. The company specializes in water treatment projects and has constructed 28 plants since 2017.

By Day 2, the non-institutional investor segment was particularly strong, with subscriptions reaching 2.98 times. The Qualified Institutional Buyers (QIBs) subscribed 2.04 times, while retail investors contributed 1.70 times. The employee portion was subscribed 3.17 times.

The IPO, priced between ₹140 and ₹148 per share, is part of a ₹650 crore offering, which includes a fresh issue of 3.87 crore shares and an Offer for Sale (OFS) of 52.68 lakh shares from the promoters. On Thursday, the company raised ₹195 crore from anchor investors as part of the IPO process.

 

IPO oversubscribed, strong investor interest, high GMP, listing expected soon, water treatment focus

Enviro Infra IPO OverSubscribed 4.32 Times The Enviro Infra Engineers IPO continues to see strong demand on Day 2, with the offering oversubscribed by 4.32 times as of 10:48 AM on November 25, 2024. Non-Institutional Investors (NIIs) are leading the charge, having subscribed 9.58 times the quota reserved for them. Retail investors and Qualified Institutional Buyers (QIBs) have also shown significant interest, oversubscribing their portions by 3.34 times and 2.05 times, respectively.

The Grey Market Premium (GMP) for the IPO has reached ₹51, reflecting a 35.14% premium on the upper price band of ₹148, further highlighting the positive market response.

The IPO, valued at ₹650.43 crore, has a price range of ₹140-148 per share and is open for subscription until November 26, 2024. It includes a fresh issue of 3.87 crore equity shares and an Offer for Sale (OFS) of 52.68 lakh shares by the promoters.

Enviro Infra IPO OverSubscribed 4.32 Times After the subscription window closes, the basis of allotment is expected to be finalized on November 27, 2024, with shares likely to be credited to successful bidders’ demat accounts by November 28, 2024. The shares are expected to be listed on the National Stock Exchange (NSE) and BSE on November 29, 2024.

Hem Securities is the lead manager for the IPO, while Bigshare Services is the registrar.

 

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