Effwa Infra IPO to open on July 5; price band set at ₹78 to ₹82 apiece. Check GMP.

  • Effwa Infra IPO comprises fresh issue of 5,316,800 equity shares and offer-for-sale of 936,000 shares. The company plans to utilise proceeds for general corporate purposes, working capital, and capital expenditure.

Dhanya Nagasundaram
First Published4 Jul 2024, 02:16 PM IST
Effwa Infra IPO price band set at  <span class='webrupee'>₹</span>78 to  <span class='webrupee'>₹</span>82 per share.
Effwa Infra IPO price band set at ₹78 to ₹82 per share.(https://www.effwa.co.in/)

The initial public offering of Effwa Infra & Research Ltd is all set to hit the D-Street tomorrow (Friday, July 5). The issue, with a price band in the range of 78 to 82 per share, will close on Tuesday, July 9. The floor price is 7.8 times the face value and cap price is 8.2 times of the face value of the equity shares. A minimum of 1600 shares, as well as multiples of those shares, are up for bid.

Effwa Infra IPO has set aside 50% of the net offer for Qualified Institutional Buyers (QIBs), 35% of the net offer has been allocated to retail investors, and non-institutional investors has been reserved 15%. The market maker portion has been 3,24,800 equity shares or 5.19% of the offer.

The company works in the areas of solid waste treatment and disposal, ventilation systems, hazardous waste management, water treatment plants, industrial and sewage effluent treatment, engineering, consulting, procurement, construction, and integrated project management services for the control of water pollution.

Also Read: Emcure Pharmaceuticals IPO day 2: GMP, subscription status, review to allotment date. Apply or not?

Furthermore, the organisation serves as advisers and consultants, offering a variety of services including project management, equipment acquisition, finance, and project implementation.

The corporation works in eight states, including a Special Economic Zone, and both the domestic and international markets. Based on sales for the fiscal years that concluded on March 31, 2024, 2023, and 2022, these areas comprise Andhra Pradesh, Chhattisgarh, Gujarat, Maharashtra, Odisha, West Bengal, Madhya Pradesh, Rajasthan, and the Special Economic Zone, which includes Adani Port.

The company's listed peers are VA Tech Wabag Ltd (with a P/E of 33.95), and EMS Ltd (with a P/E of 22.24).

The financial year ending on March 31, 2024, and the financial year ending on March 31, 2023, saw Effwa Infra & Research's revenue climb by 26.08% and profit after tax (PAT) increase by 169%.

Effwa Infra IPO details

The Effwa Infra IPO, worth 51.27 crore, consists of fresh issue of 5,316,800 equity shares worth 43.60 and offer-for-sale of 936,000 shares, aggregating up to 7.68 crore.

The company intends to use the net proceeds from the new offering to finance the following goals: general corporate purposes; financing the company's working capital needs for the acquisition of new office equipment; and funding the company's capital expenditure requirements.

The Effwa Infra and Research IPO's book running lead manager is Shreni Shares Limited, and the issue's registrar is Bigshare Services Pvt Ltd. Rikhav Securities is the market maker for Effwa Infra and Research IPO.

Also Read: NSE imposes 90% price control cap on opening price of SME IPOs

Effwa Infra IPO GMP today

Effwa Infra IPO GMP today is +115. This indicates Effwa Infra share price were trading at a premium of 115 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, Effwa Infra IPO expected listing price was indicated at 197 apiece, which is 140.24% higher than the IPO price of 82.

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

Also Read: ACME Solar files for a 3,000-cr IPO to power its aggressive expansion

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

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First Published:4 Jul 2024, 02:16 PM IST
HomeMarketsIPOEffwa Infra IPO to open on July 5; price band set at ₹78 to ₹82 apiece. Check GMP.

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