Enviro Infra Engineers Limited IPO
Enviro Infra Engineers Limited is launching its initial public offering (IPO) from November 22-26, 2024. The company designs, constructs, operates and maintains water and waste-water treatment plants for government entities. This article provides key details about the IPO including offer structure, company background, financials, and issue review.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
About Enviro Infra Engineers Limited
Company History
Established in 2009 as a specialized infrastructure company focusing on water treatment solutions. Over the last 7 years, successfully developed 28 Wastewater Treatment Plants and Water Supply and Sanitation Projects across India, including 22 projects of 10 MLD capacity and above.
Core Expertise
Specializing in design, construction, operation, and maintenance of wastewater treatment plants and water supply projects for government agencies. Technical capabilities include handling Sewage Treatment Plants (STPs), Sewerage Schemes (SS), Common Effluent Treatment Plants (CETPs), and Water Treatment Plants (WTPs).
Current Operations
Operating through EPC or Hybrid Annuity Model (HAM) basis. Supported by an in-house team of 180 engineers for designing, engineering, and construction, along with external consultants and industry experts.
Company Financials
All figures in Rs Crore. The company's revenue increased by 116% and profit after tax rose by 101% between FY2023 and FY2024.
IPO Details and Schedule
1
IPO Opens
November 22, 2024
2
IPO Closes
November 26, 2024
3
Allotment Date
November 27, 2024
4
Refund Initiation
November 27, 2024
5
Shares Credited
November 28, 2024
6
Listing Date
November 29, 2024
The IPO consists of a fresh issue of 3.87 crore shares and an offer for sale of 0.53 crore shares. The price band is set at Rs 140-148 per share, with a lot size of 101 shares. The minimum investment for retail investors is Rs 14,948. The issue includes a reservation of 100,000 shares for employees at a discount of Rs 13 per share.
IPO Objectives and Fund Utilization
1
Working Capital Requirements
To meet the company's increasing working capital needs
2
Subsidiary Funding
Infusion of funds in EIEL Mathura Infra Engineers Private Limited for a 60 MLD STP project in Mathura, Uttar Pradesh
3
Debt Repayment
Repayment or prepayment of certain outstanding borrowings
4
Inorganic Growth
Funding potential acquisitions and general corporate purposes
Key Performance Indicators and Competitive Strengths
Market Capitalization
Rs 2597.84 Crore
Return on Equity (ROE)
51.68%
Return on Capital Employed (ROCE)
32.34%
Debt to Equity Ratio
0.8
PAT Margin
15.17%
Competitive strengths include in-house design and execution capabilities, growing presence in existing regions, diversified order book, use of advanced technologies, and experienced management team.
IPO Review
The company has an in-house design, engineering, and execution team of 180 engineers with a diversified order book of 21 projects across India, aggregating to Rs 1,906.28 crore as of June 30, 2024. It also has in-house execution capabilities with timely delivery and an established track record enabling consistent eligibility for high-value project tenders, along with the use of advanced technologies in constructing WWTPs and WSSPs.
Moreover, Enviro Infra Engineers Limited has shown strong financial growth and has a solid track record in the water and waste-water treatment sector. The company's in-house capabilities, diversified order book, and focus on government projects provide a stable foundation for future growth.