Enviro Infra Share Price Live Updates: Stock slips into red after opening with 48.6% premium at ₹220 on NSE

Enviro Infra share price ended 5% below its listing price on the BSE while from its IPO price, the stock ended nearly 40% higher. During the day, the stock hit a high of ₹233.50 and a low of ₹205.10.

1. **Working Capital Requirements**: ₹18,100.00

2. **Infusion of Funds in Subsidiary**: ₹3,000.00, allocated for the construction of a 60 MLD Sewage Treatment Plant (STP) under the 'Mathura Sewerage Scheme' in Mathura, Uttar Pradesh, through a Hybrid Annuity-Based PPP Mode by EIEL Mathura Infra Engineers Private Limited (“EIEL Mathura”).

3. **Repayment/Prepayment of Borrowings**: ₹12,000.00, intended for the full or partial repayment of certain outstanding borrowings.

4. **Funding for Inorganic Growth and General Corporate Purposes**: Amount to be determined for acquisitions and corporate purposes.

The stock was trading at ₹208.50 per share on NSE, marking a 5.23% decrease at 14:21 IST, and at ₹208.55 per share on BSE, showing a nearly 4.33% lower.

In the case of Anchor Investors, 50% of the Equity Shares allocated in the Anchor Investor Portion will be subject to a lock-in period of 90 days from the allotment date. The remaining 50% will have a shorter lock-in period of 30 days from the same date of allotment.

As of the date of this Red Herring Prospectus, the Promoters of the company include Sanjay Jain, Manish Jain, Ritu Jain, and Shachi Jain. Collectively, the promoters hold 3,70,94,280 Equity Shares with a face value of ₹10 each, which constitutes 99.97% of the pre-offer issued, subscribed, and paid-up Equity Share capital of the Company.

Arun Kejriwal, the founder of Kejriwal Research and Investment Services, noted that the issue was listed significantly higher than expected. After reaching a peak of ₹233.70, it is now under considerable pressure, having dropped to a low of ₹206.41. Therefore, it's important to implement a trailing stop loss above this low and strictly adhere to it. If the stock breaks this low, it could trigger panic among shareholders, especially since it is already trading below the weighted average.

For those who currently own shares, this is the recommended strategy. For those who do not own shares, it is advisable to wait a couple of days for the price to stabilize. Tuesday may be a better day to consider entering the market, as the stock appears to have absorbed much of the short-term fluctuations in price at this time.

The stock was trading at ₹212.25 per share on NSE, marking a 3.52% decrease at 12:49 IST, and at ₹212.10 per share on BSE, showing a nearly 2.7% lower.

According to the company's Red Herring Prospectus (RHP), over the past seven years, the company has expanded its presence in states where it was initially awarded projects, such as Gujarat, Rajasthan, Punjab, Haryana, Uttar Pradesh, Uttarakhand, and Chhattisgarh. 

The company has focused on bidding for projects in these states and has successfully secured multiple awards following the initial contracts. It has enhanced its capacity and capability to execute projects awarded by various authorities in these regions and has developed strong relationships with the authorities across these states. Currently, the company is executing projects in eight states: Gujarat, Rajasthan, Delhi, Jharkhand, Karnataka, Uttar Pradesh, Chhattisgarh, and Madhya Pradesh.

As of June 30, 2024, the company's debt-to-equity ratio stood at 0.95. This stable growth in revenue and profits enables the company to fund its strategic initiatives and pursue further opportunities for growth, as per RHP

The company has shown consistent financial performance over the years, marked by growth in both revenues and profitability, as indicated in the RHP. Over the past three financial years, the company has focused on expanding its projects in terms of both quantity and capacity. This strategy has led to an increase in revenue from operations and profits.

The company's revenue from operations has grown at a compound annual growth rate (CAGR) of 80.58%, rising from ₹22,352.51 lakhs in Fiscal 2022 to ₹72,891.50 lakhs in Fiscal 2024. During the same period, the firm's profit has also increased, with a CAGR of 78.87%, growing from ₹3,455.03 lakhs in Fiscal 2022 to ₹11,054.41 lakhs in Fiscal 2024.

The stock was trading at ₹210.89 per share on NSE, marking a 4.14% decrease at 11:45 IST, and at ₹210.75 per share on BSE, showing a nearly 3.33% lower.

The company participates in tenders issued by state governments and urban local bodies (ULBs) for the development of WWTPs and WSSPs on an EPC (Engineering, Procurement, and Construction) or HAM (Hybrid Annuity Model) basis. As of June 30, 2024, the company has successfully developed 28 WWTPs and WSSPs across India over the past seven years, including 22 projects with capacities of 10 MLD and above.

Enviro Infra Engineers Limited was established in 2009 and specializes in the design, construction, operation, and maintenance of water and wastewater treatment plants (WWTPs) as well as water supply projects (WSSPs) for government agencies and entities. WWTPs include sewage treatment plants (STPs), sewerage schemes (SS), and common effluent treatment plants (CETPs). In contrast, WSSPs consist of water treatment plants (WTPs), pumping stations, and the installation of pipelines for water supply.

The company's focus on sustainable infrastructure and its strong track record in executing projects have contributed to this impressive listing. However, investors should remain cautious and monitor the company's performance closely, considering factors such as project execution risks, regulatory changes, and competition in the sector.

While the initial listing is promising, long-term success will depend on Enviro Infra's ability to capitalize on its growth opportunities and deliver strong financial performance. But as of now investors may hold their position by keeping a stoploss around 200.

The stock was trading at ₹209.28 per share on NSE, marking a 4.87% decrease at 10:47 IST, and at ₹207 per share on BSE, showing a nearly 5.05% lower.

Enviro Infra listing was above our expectations, this shows the demand for the theme based sector water and wastewater management companies have a bright future. The healthy listing gain is justified on the back of reasonable IPO valuation along with sector wise focus and increasing relevance of water & wastewater infrastructure treatment by the govt as well as industries and 2.5x order book visibility.

Considering all the parameters and improving market sentiments, allotted conservative investors can think of booking profits due to the ongoing market volatility scenario. While risk takers should consider the company to HOLD IT FOR LONG TERM despite knowing short term volatility. For non-allotted investors, we advise to accumulate if we get dips post listing.

Enviro Infra Engineers share price made a bumper debut on the bourses today. On NSE, Enviro Infra Engineers share price opened at ₹220 per share, 48.6% higher than the issue price of ₹148. On BSE, Enviro Infra Engineers share price today opened at ₹218 apiece, up 47.30% than the issue price.

"Enviro Infra Engineers has a sustained business model in the water treatment segment. The demand in the company's area of business is expected to ascend further, which signals an uptick in the sustained business of Enviro Infra Engineers Limited. However, weak sentiments in the secondary market may be a taper for Enviro Infra Engineers IPO listing premium. However, a robust listing premium in such a weak stock market can't be ruled out

Arun Kejriwal said, “With a conservative assessment, one can expect Enviro Infra Engineers IPO listing price with a premium of ₹40 to ₹45. So, Enviro Infra Engineers IPO listing price could be in the range of ₹190 in bear case.”

Given the strong investor interest, robust fundamentals, and positive market sentiment, the stock is expected to list with a significant premium of around 35%. However, the actual listing performance could be influenced by broader market conditions. The long-term performance will depend on the company's ability to execute projects efficiently, manage costs, and adapt to evolving industry dynamics

Enviro Infra Engineers is expected to make a strong debut on the stock market, with a premium of approximately 35% on the upper price band, reflecting robust investor interest, as indicated by the subscription rate of 89.90 times. The company operates in India's rapidly growing water and wastewater treatment sector, fueled by increasing water demand, urbanization, and supportive government initiatives like the Hybrid Annuity Model (HAM) and Namami Gange.

Despite, subdued mood in the market, Enviro Infra a specialised water and wastewater management company managed to attract stronger response from all sets of investors, with high demand seen in both QIB & NII category. 

Considering all the parameters supported by strong ask in its subscription demand and followed by improving market sentiments, the stock can list with a healthy listing gain around ~15-25% range on its issue price. Allotted conservative investors can think of booking profits anything above 25% due to the ongoing market volatility scenario.

While long term investors should consider the company to HOLD IT FOR LONG TERM despite knowing short term volatility & risk in the markets. For non-allotted investors, we advise to accumulate if we get dips post listing.

Enviro Infra Engineers IPO GMP today or grey market premium is +57. This indicates Enviro Infra Engineers share price were trading at a premium of ₹57 in the grey market on Friday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Enviro Infra Engineers share price was indicated at ₹205 apiece, which is 38.51% higher than the IPO price of ₹148.

Based on the grey market activities from the last 13 sessions, today's IPO gray market premium (GMP) shows an upward trend, suggesting a strong listing. The lowest GMP recorded is ₹0, while the highest is ₹57, according to experts at investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.