Enviro Infra Engineers IPO subscribed 89.90 times on day 3 of issue, QIBs bid highest; Latest GMP here

Enviro Infra Engineers IPO: The mainboard initial public offering (IPO) ofEnviro Infra Engineers Limited received a strong response from investors on the third and final day of subscription. The public issue of the wastewater management company hit India's primary market on Friday, November 22, to open for its three-day subscription period and closed today on Tuesday, November 26, 2024.

Enviro Infra Engineers IPO has reserved not less than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), 15 per cent for non-institutional institutional investors (NII), and 35 per cent of the offer is reserved for retail investors. Employees have been reserved nearly 1,00,000 equity shares and a discount of ₹13 per share is offered to eligible employees.

Also Read: Enviro Infra Engineers IPO day 3: GMP rises after strong subscription status. Apply or not?

Enviro Infra Engineers IPO Subscription Status

On the third day of subscription, Enviro Infra Engineers IPO was subscribed 89.90 per cent by the end of the session. QIBs bid the highest at 157.05 times; the portion reserved for NIIs was booked 153.80 times, and the portion reserved for retail invesots was booked 24.48 times. According to BSE data, the IPO received 2,76,83,39,401 share applications against 3,07,93,600 shares offered on Tuesday.

Enviro Infra Engineers IPO Latest GMP

Enviro Infra Engineers IPO GMP today is +47. According to investorgain.com, this indicates that Enviro Infra Engineers' share price was trading lower in the grey market. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of NTPC Green Energy shares is indicated at ₹196 apiece, which is 31.76 per cent higher than the IPO price of ₹148.

Also Read: Enviro Infra Engineers IPO subscribed 12.52 times on Day 2: Check GMP, subscription status, other details

According to the recent 17 sessions of grey market activities, the present GMP indicates a downward trend. The minimum GMP recorded is Re 0, whereas the maximum GMP reached ₹52, as per the experts at investorgain.com. 'Grey market premium' indicates investors' readiness to pay more than the issue price.

Enviro Infra Engineers IPO Details

Enviro Infra Engineers IPO is a book built issue of ₹650.43 crore. The issue is a combination of fresh issue of 3.87 crore shares aggregating to ₹572.46 crore and offer for sale (OFS) of 0.53 crore shares aggregating to ₹77.97 crore. The company raised ₹194.6 crore from its anchor investors. It has fixed its price band at the range of ₹140 to ₹148 per equity share with a lot size of 101 shares per lot.

The allotment for the Enviro Infra Engineers IPO is expected to be finalized on Wednesday, November 27, 2024. Enviro Infra Engineers IPO will list on BSE, NSE with tentative listing date fixed as Friday, November 29, 2024. The minimum lot size for an application is 101 shares, which means investors can bid for a minimum of 101 shares and in multiples thereof.

Also Read: Enviro Infra Engineers IPO: Firm raises ₹194.6 crore via anchor investors ahead of public issue

The minimum amount of investment required by retail investors is ₹14,948. Hem Securities Limited is the book running lead manager of the Enviro Infra Engineers IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

Enviro Infra Engineers Company Details

Enviro Infra Engineers Limited was established in 2009 and specialises in designing, building, operating, and maintaining water and Waste-Water Treatment Plants (WWTPs) and water supply projects (WSSPs) for government agencies/entities.

The company engages in bids from state governments and urban local bodies (ULBs) to build WWTPs and WSSPs using Engineering, Procurement, and Construction (EPC) or Hybrid Annuity Model (HAM) models. By June 30, 2024, the company has effectively built 28 WWTPs and WSSPs in India over the past seven years, which includes 22 projects with a capacity of 10 MLD or more.

The company competes in EPC or HAM tenders from state governments and ULBs for building WWTPs and WSSPs. By June 30, 2024, the company had effectively built 28 WWTPs and WSSPs in India over the past seven years, with 22 of them having a capacity of 10 MLD or more. As of June 30, 2024, there are 21 WWTPs and WSSPs in the order book with a total worth of ₹1,90,628.06 lakhs.

Sanjay Jain, Manish Jain, Ritu Jain, and Shachi Jain are the company's promoters. In total, the promoters own 3,70,94,280 equity shares with a face value of ₹10 each in their company, making up 99.97 per cent of the pre-offer issued, subscribed, and paid-up equity share capital of the company.

Also Read: Enviro Infra Engineers IPO: Price band set at ₹140-148 per share; check issue details, key dates, more

The company plans to utilise the funds raised from the new offering for various purposes such as meeting Working Capital Requirements, supporting its subsidiary EIEL Mathura in constructing 60 MLD STP for the 'Mathura Sewerage Scheme', repaying current debts, and enabling growth through potential acquisitions and general corporate needs.

As per the red herring prospectus (RHP), the company's listed peers are EMS Ltd (with a P/E of 25.92), ION Exchange Ltd (with a P/E of 38.68), Va Tech Wabag Ltd (with a P/E of 43.90), and Vishnu Prakash R Punglia Ltd (with a P/E of 25.31).

Over the last two fiscal years, the company has recorded a consolidated total income and net profit of Rs. 225.62 crore and Rs. 34.55 crore for FY22, Rs. 341.66 crore and Rs. 55.34 crore for FY23, and Rs. 738.00 crore and Rs. 108.57 crore for FY24. In the first quarter of FY25, which concluded on June 30, 2024, the company logged net profit of Rs. 29.97 crore and a total income of Rs. 207.46 crore, reflecting a notable increase in both revenue and profit compared to FY24.