Today is the second day of bidding for Enviro Infra Engineers Limited's IPO. The IPO was oversubscribed 2.09 times on the first day. The IPO was subscribed 1.73 times in the retail category, 2.04 times in the qualified institutional buyers (QIB) category and 2.99 times in the non-institutional investors (NII) category.
Investors can bid for this issue till tomorrow i.e. 26th November. The company's shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 29. The issue size of this IPO is ₹ 650.43 crore. The company plans to issue a total of 4,39,48,000 shares. It includes a fresh issue of 3,86,80,000 new shares, while the promoters will sell 52,68,000 shares. The face value of each share is fixed at ₹10.
What is the minimum and maximum amount that can be invested? Enviro Infra Engineers has set an IPO price band of ₹140 to ₹148 per share. Retail investors can bid for a minimum of one lot i.e. 101 shares. If you apply for 1 lot as per IPO upper price band of ₹148, you have to invest ₹14,948 for it.
At the same time, retail investors can apply for a maximum of 13 lots i.e. 1313 shares. For this, investors have to invest ₹194,324 as per the upper price band.
Will the company use the funds? The company will use the proceeds from this IPO for several important purposes. These include meeting our daily needs, investing in EIEL Mathura Infra Engineers Pvt Ltd and building a 60 MLD sewage treatment plant in Mathura. Along with this, the company will pay off some of its old debts and invest the money for general business purposes.
How has the financial performance of the company been? If we look at the financial performance of Enviro Infra Engineers Limited, the company has consistently performed well in the last three financial years. In FY22, the company's consolidated total revenue was ₹ 225.62 crore and net profit was ₹ 34.55 crore.
which increased to ₹ 341.66 crore and ₹ 55.34 crore in FY23. In FY24, the company reported a revenue of ₹738.00 crore and a net profit of ₹108.57 crore. In Q1FY25, the company's revenue was ₹207.46 crore and net profit was ₹29.97 crore.
The company deals with water and waste water treatment plants Enviro Infra Engineers Limited (EIEL) undertakes the design, construction, operation and maintenance of water and wastewater treatment plants (WWTPs) and water supply scheme projects (WSSPs). This work is mostly done for government organizations.
WWTPs of the company include Sewage Treatment Plants (STPs), Sewerage Schemes (SS) and Common Effluent Treatment Plants (CETPs), while WSSPs include Water Treatment Plants (WTPs), pumping stations and laying pipelines for water supply.
What is an IPO? When a company issues its shares to the general public for the first time, it is called an initial public offering or IPO. A company needs money to grow its business. In such a situation, the company raises money by selling some shares to the public or by issuing new shares instead of borrowing from the market. For this the company brings IPO.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
