Enviro Infra Engineers IPO Subscription Details on Day 1

22 Nov 2024 , 01:30 PM

Enviro Infra Engineers Ltd launched its initial public offering (IPO) for subscription on November 22, 2024, and the subscription window closes on November 26, 2024. The IPO consists of a fresh issue of 3.87 crore equity shares and an Offer for Sale (OFS) of 52.68 lakh shares by the promoters.

At the time of writing, the IPO was subscribed 1.07 times with interest from various categories of investors. In terms of the retail investor category, subscribed at 1.02 times. Qualified Institutional Buyers (QIBs) subscribed to 1.01 times of their allotment whereas Non-Institutional Investors (NIIs) subscribed to 1.23 times of their share.

The company has announced a price band in the IPO that is priced at between ₹140 to ₹148 per share and plans to raise ₹650 crore in the issue. At least 101 shares per lot and thereafter in multiples of 101 shares. Promoter holding in the company: 93% which will come down after the IPO.

The amount raised from the IPO will be used for a couple of purposes, one of which is towards working capital of ₹181 crores. ₹100 crores will be used to service outstanding debt commitments that will reduce the debt liabilities of the company. ₹30 crores will be put into the subsidiary, EIEL Mathura Infra Engineers in order to set up a 60 million liters per day Sewage Treatment Plant (STP) at Mathura, Uttar Pradesh.

The remaining balance of the issued and allotted funds will be utilized for general corporate purposes that will fuel the company’s growth and operational flexibility.

50% of the IPO size will be given to Qualified Institutional Buyers. This will ensure adequate presence of institutions 35% of the issue will be catered to retail investor ensuring individual participation. 15% of the IPO will be reserved for Non-Institutional Investors (NIIs) that are involved with significant Individual investors.

Enviro Infra had raised ₹195 crores from anchor investors before the public subscription. Quant Mutual Fund, Motilal Oswal Mutual Fund, LIC Mutual Fund, and Abakkus Diversified Alpha Fund-2 are the anchor investors in the issue.

The company was incorporated in the year 2009 and is engaged in designing and building, operating and maintaining water and wastewater treatment plants as well as water supply projects for government agencies.

Revenue for the business has risen by 116%, which reflects a very high growth in its financial performance between FY2023 and FY2024. PAT rose at a comparable rate of 101% for the same period, which implies that it manages profitability well and is operating efficiently.