Stellar Debut! Enviro Infra Engineers share price lists at ₹220, a premium of 49% over IPO price

Enviro Infra Engineers IPO Listing: Enviro Infra Engineers had a stellar debut on Dalal Street on Friday, November 29, with its shares listing at ₹220 each on the NSE, marking a 48.65% premium over the issue price of ₹148. On the BSE, the stock opened at ₹218, reflecting a 47.29% premium. This listing is the biggest mainline IPO debut in November and the 15th largest overall in 2024.

The mainboard IPO, valued at ₹650.43 crore, was open for subscription from November 22 to November 26. The issue price was set between ₹140 and ₹148 per share. The IPO garnered an overwhelming response from investors, being oversubscribed by 89 times, with strong interest from Qualified Institutional Buyers (QIBs).

According to exchange data, the QIB segment was oversubscribed 157 times, while the Non-Institutional Investors (NII) portion saw an oversubscription of 153 times. The retail portion of the issue was oversubscribed 24.48 times.

The company intends to utilise the proceeds from the fresh issue for several purposes. These include meeting its working capital requirements and infusing funds into its subsidiary, EIEL Mathura Infra Engineers Private Limited (EIEL Mathura), for constructing a 60 MLD sewage treatment plant under the "Mathura Sewerage Scheme" in Uttar Pradesh through the Hybrid Annuity-Based PPP Mode.

Additionally, the proceeds will be used to repay or prepay certain outstanding borrowings as well as to fund inorganic growth through unidentified acquisitions and general corporate purposes, according to the company's RHP. 

About Enviro Infra Engineers

The company is in the business of designing, construction, operation, and maintenance of water and wastewater treatment plants (WWTPs) and water supply scheme projects (WSSPs) for government authorities and bodies.

WWTPs include Sewage Treatment Plants (STPs), Sewerage Schemes (SS), and Common Effluent Treatment Plants (CETPs), while WSSPs include Water Treatment Plants (WTPs) along with pumping stations and laying of pipelines for supply of water (collectively, “Projects”).

In addition to the execution of projects independently, the company also enters into joint ventures with other infrastructure and construction companies to jointly bid and execute projects.

The company bids for tenders issued by state governments and urban local bodies (ULBs) to develop wastewater treatment plants (WWTPs) and water supply system projects (WSSPs) on an EPC or HAM basis.

As of June 30, 2024, it has successfully developed 28 WWTPs and WSSPs across India over the past seven years, including 22 projects with capacities of 10 MLD or higher. Its order book includes 21 WWTPs and WSSPs with a total value of ₹1,906.28 crore as of the June quarter, the company's RHP showed.

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