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PremiumEnviro Infra Engineers IPO DAY 3 Live Updates: The initial share offering of Enviro Infra Engineers, a company specializing in the development of turnkey projects for sewage treatment plants and sewerage systems, was fully subscribed on the first day of the offer on Friday.
On the third day of public subscription, the IPO was oversubscribed 89.90 times. The QIB portion was booked the most, with 157.05 times the shares on offer. The NII quota followed suit, garnering 153.80 times bids.
The retail portion was subscribed 24.48 times on the third and final day of the IPO, according to data collected from the BSE website.
On Thursday, Enviro Infra Engineers successfully raised approximately ₹195 crore from anchor investors. The company's initial public offering (IPO) is valued at ₹650 crore, with shares priced between ₹140 and ₹148 each. The IPO consists of a fresh issuance of 3.87 crore equity shares, along with a sale offer (OFS) of 52.68 lakh shares by the promoters.
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Enviro Infra Engineers IPO was subscribed 89.90 times at the end of the third and final day of the bidding process on Tuesday, November 26. Here is the final subscription figures for different categories of investors:
QIB: 157.05x
NII: 153.80x
Retail Investors: 24.48x
Employee: 37.77x
The company is currently executing projects in eight states: Gujarat, Rajasthan, Delhi, Jharkhand, Karnataka, Uttar Pradesh, Chhattisgarh, and Madhya Pradesh. The company plans to expand its business operations in East and South India. It has recently won projects in Jharkhand and Karnataka and has submitted bids for projects in Odisha, West Bengal, and Goa.
Enviro Infra Engineers IPO's QIB portion saw solid buying, with the overall quota subscribed 145x as of 3.40 pm on the last day of the bidding process. At the end of Day 2, QIB portion was subscribed just 2.58x.
The company plans to use IPO funds for the following purposes:
- To meet the Working Capital Requirements
- Infusion of funds in subsidiary, EIEL Mathura Infra Engineers Private Limited (EIEL Mathura) to build 60 MLD STP under the project titled ‘Mathura Sewerage Scheme" at Mathura in Uttar Pradesh through Hybrid Annuity Based PPP Mode
- Repayment/prepayment in full or in part, of certain of our outstanding borrowings
- Funding inorganic growth through unidentified acquisitions and general corporate purposes.
According to market sources, the latest grey market premium (GMP) for Enviro Infra Engineers stands at ₹50. Based on the upper price band of ₹148 per share, the company's shares could debut on the Indian bourses at ₹198 apiece, reflecting a premium of 33.8 per cent.
EIEL’s ROE stood at 37.4% in FY24, which is superior compared to its peers. The debt-to-equity ratio of the company has increased from 0.5x in FY23 to 0.95x in Q1FY25. However, post-IPO, it is expected to reduce to 0.2x, indicating improved financial leverage.
Enviro Infra Engineers IPO received strong demand from non-institutional investors (NIIs), with their portion garnering over 100 times bids. as of 2 pm, the NII quota was subscribed 110.34 times while the overall IPO was booked 38 times.
Enviro Infra Engineers' order book stood at ₹205.18 crore at the end of June 30, 2024. Out of this, government contracts were ₹205.15 crore with private contracts on its book worth ₹2.8 lakhs.
The bidding for Enviro Infra Engineers IPO picked pace on the third day of the bidding process, with the issue garnering over 28 times bids so far. Here is how different categories are subscribed:
QIB: 4.99x
NII: 88.79x
Retail: 15.92x
Employee: 25.55x
The IPO opened on Friday, November 22, 2024, and will close today, November 26, 2024. The basis of allotment will be determined on Wednesday, November 27, 2024, with refunds initiated on the same day. Shares will be credited to demat accounts on Thursday, November 28, 2024, and the listing will take place on Friday, November 29, 2024.
Enviro Infra Engineers IPO was subscribed over 20 times on Day 3 as of 11.20 am. Here is a detailed view of how different quotas were subscribed:
QIB: 2.65x
NII: 62.61x
Retail: 12.4x
Employee: 20.3x
- Sanjay Jain is the Chairman and Whole-time Director of the Company. He has been associated with the Company since its incorporation. He holds a bachelor’s degree in chemical engineering from Mangalore University and has over two decades of experience in the water and wastewater treatment industry. He is responsible for the designing, procurement of raw materials and machinery in connection with the construction, operation, and maintenance of the Company's projects.
- Manish Jain is the Managing Director of the Company. He has been associated with the Company since its incorporation. He holds a bachelor’s degree in chemical engineering from Punjab University and has over two decades of experience in the water and wastewater treatment industry. He oversees the bidding, execution, and operation & maintenance of the Company’s projects.
- Ritu Jain is the Non-Executive Director of the Company. She has been associated with the Company since February 2017. She holds a bachelor’s degree in science (Home Science) from Maharshi Dayanand University, a bachelor’s degree in education from Kurukshetra University, and a master’s degree in science (Home Science) from Kurukshetra University.
- Anil Goyal is the Independent Director of the Company. He was appointed as an Independent Director on January 20, 2023. He holds a bachelor’s degree in commerce from the University of Rajasthan and a master’s degree in commerce from the University of Ajmer.
- Nutan Guha Biswas is the Independent Director of the Company. She was appointed as an Independent Director on June 15, 2024. She holds a bachelor’s degree in arts from the University of Delhi. She is a retired IAS officer and has over 15 years of work experience.
- Aseem Jain is the Independent Director of the Company. He was appointed as an Independent Director on August 23, 2022. He is a member of the Institute of Cost Accountants of India and a practising cost accountant. He has over two decades of experience in cost accountancy, finance, accounts, taxation, contracts, commercial and regulatory laws.
Source: Geojit Financial Services
The company bids for tenders issued by State Governments and ULBs for developing WWTPs and WSSPs on an EPC or HAM basis. As of June 30, 2024, the company has successfully developed 28 WWTPs and WSSPs across India over the past seven years, which includes 22 projects with a capacity of 10 MLD and above. As of June 30, 2024, the company’s order book includes 21 WWTPs and WSSPs with an aggregate value of ₹1,90,628.06 lakhs.
Enviro Infra Engineers IPO was booked 14.90 times so far on the third day of the bidding process on Tuesday, November 26. NII portion was booked the most at 43.3 times, followed by retail investor quota at 10 times and QIB portion at nearly 3 times.
The bidding for Enviro Infra Engineers IPO begins. Today is the third and last day to susbcribe to the Enviro Infra Engineers IPO. The IPO closed day 2 with 12.52 times subscription.
Enviro Infra Engineers Limited's revenue surged by 116%, while its profit after tax (PAT) grew by 101% from the financial year ending March 31, 2023, to March 31, 2024.
Enviro Infra Engineers IPO GMP or grey market premium stood at ₹48 today. This means, the company's shares could list at ₹196, up 32.43% over the IPO price of ₹148 apiece.
Enviro Infra Engineers IPO DAY 2 Live Updates: The Enviro Infra Engineers IPO was subscribed 12.52 times on the second day.
The Non-Institutional Investors (NIIs) led the second day of the bidding round, booking the IPO over 34 times on Day 2. The retail investors followed the NII lead, coming in and subscribing to the public issue 8.73 times.
The Qualified Institutional Buyers (QIB) portion was subscribed 2.58 times on the second day of IPO.
The initial public offer of Enviro Infra Engineers IPO has been subscribed 12.26x on the second day of subscription today, at 16:39 IST, as per BSE data.
The initial share sale received bid for 37,74,25,082 shares against 3,07,93,600 shares on offer, according to BSE.
The portion for retail investors received 8.56 times subscription while the quota for non-institutional investors got subscribed 33.76 times. The qualified institutional buyers (QIBs) part is booked 2.58 times. The employee portion has been booked 13.48 times.
As per the red herring prospectus (RHP), the company's listed peers are EMS Ltd (with a P/E of 25.92), ION Exchange Ltd (with a P/E of 38.68), Va Tech Wabag Ltd (with a P/E of 43.90), and Vishnu Prakash R Punglia Ltd (with a P/E of 25.31).
The initial public offer of Enviro Infra Engineers IPO has been subscribed 10.83x on the second day of subscription today, at 15:45 IST, as per BSE data.
The initial share sale received bid for 33,36,32,896 shares against 3,07,93,600 shares on offer, according to BSE.
The portion for retail investors received 8.00 times subscription while the quota for non-institutional investors got subscribed 28.51 times. The qualified institutional buyers (QIBs) part is booked 2.53 times. The employee portion has been booked 12.30 times.
The growth for the company is tied to timely rollout of tenders from government schemes pertaining to wastewater treatment and water supply. However, in H1FY25, the tendering activity was subdued due to general election and is expected to pick up in H2FY25. Despite that, their order book position as on June 30, 2024, remains strong at ₹19,063mn, offering revenue visibility of over 30 months on FY24 revenue basis. Project execution timeline for the current order book is 18-30 months. As highlighted above, the issue is valued higher than its listed peers on FY24 EV/EBITDA. This combined with sluggish tendering activity limits the upside potential. We thereby assign “Subscribe for Long term" rating to the IPO.
Enviro Infra Engineers successfully raised approximately ₹195 crore from anchor investors just a day before the opening of its initial share sale for public subscription. Notable anchor investors include Quant Mutual Fund, Motilal Oswal Mutual Fund, LIC Mutual Fund, Abakkus Diversified Alpha Fund-2, Singularity Equity Fund I, and Meru Investment Fund PCC Cell 1, as detailed in a circular posted on the BSE's website.
According to the circular, the company has allocated over 1.31 crore equity shares to 22 different funds at a price of ₹148 per share, which is at the upper limit of the designated price band. This brings the total transaction size to ₹194.68 crore.
The initial public offer of Enviro Infra Engineers IPO has been subscribed 8.87x on the second day of subscription today, at 14:24 IST, as per BSE data.
The initial share sale received bid for 27,38,65,540 shares against 3,07,93,600 shares on offer, according to BSE.
The portion for retail investors received 6.66 times subscription while the quota for non-institutional investors got subscribed 22.65 times. The qualified institutional buyers (QIBs) part is booked 2.47 times. The employee portion has been booked 10.57 times.
The global water and wastewater treatment market is projected to grow at a CAGR of 6.10% in terms of value, reaching USD 521.97 billion by 2033, up from USD 306.332 billion in 2024. India, which constitutes 2.45% of the world's land area and holds 4% of its water resources, is home to 16% of the global population. With a current population growth rate of 1.9% per year, India’s population is expected to exceed 1.5 billion by 2050. This rapid urbanization trend is placing significant pressure on local authorities to meet fundamental needs such as safe drinking water, sanitation, and adequate infrastructure.
1. EIEPL Bareilly Infra Engineers Private Limited (“EIEPL Bareilly")
2. EIEL Mathura Infra Engineers Private Limited (“EIEL Mathura")
3. Enviro Infra Engineers (Saharanpur) Private Limited (“EIEL Saharanpur")
The initial public offer of Enviro Infra Engineers IPO has been subscribed 7.63x on the second day of subscription today, at 13:18 IST, as per BSE data.
The initial share sale received bid for 23,48,98,124 shares against 3,07,93,600 shares on offer, according to BSE.
The portion for retail investors received 5.84 times subscription while the quota for non-institutional investors got subscribed 19.21 times. The qualified institutional buyers (QIBs) part is booked 2.05 times. The employee portion has been booked 9.54 times.
The adoption of more sustainable approaches through reduce-recycle-reuse presents a significant opportunity for the growth of the water and wastewater treatment market. As global concerns about environmental sustainability and resource conservation intensify, industries and communities are increasingly turning to innovative solutions to address water management challenges. This shift towards sustainable practices not only aligns with regulatory requirements but also offers economic and environmental benefits, driving the demand for advanced water and wastewater treatment technologies and services.
The brokerage has a ‘Subscribe for Long Term’ rating on the issue. Over the last three fiscal years, the company has maintained an average EPS of Rs. 5.95 and an average RoNW of 41.44%. The issue price is set at a P/BV of 6.27 based on a NAV of Rs. 23.60 as of June 30, 2024, and a P/BV of 2.90 based on a post-IPO NAV of Rs. 51.01 per share (at the upper cap).
If annualized FY25 earnings are attributed to the post-IPO fully diluted equity base, the asking price corresponds to a P/E ratio of 21.67, and based on FY24 earnings, the P/E ratio stands at 23.90, suggesting the IPO is fully priced. However, the debt of Rs. 305 crore as of June 30, 2024, raises some concerns.
The initial public offer of Enviro Infra Engineers IPO has been subscribed 6.29x on the second day of subscription today, at 12:03 IST, as per BSE data.
The initial share sale received bid for 19,35,40,139 shares against 3,07,93,600 shares on offer, according to BSE.
The portion for retail investors received 4.75 times subscription while the quota for non-institutional investors got subscribed 15.47 times. The qualified institutional buyers (QIBs) part is booked 2.05 times. The employee portion has been booked 8.23 times.
Enviro Infra Engineers' order book has increased by 42%, rising from ₹1,496.7 crore in FY23 to ₹2,125.6 crore in FY24. The company reported an order book of ₹1,906.3 crore in June 2024. For FY24, the order book to sales ratio is 2.6 times, indicating strong revenue visibility for the next 2 to 3 years.
In house designing, engineering and execution team
In-house execution capabilities with timely delivery and established track record enabling consistent increase in eligibility for high value project tenders
Use of advanced technologies in the construction and installation of WWTPs or WSSPs
Experienced Promoters and senior management team
Increasing presence in existing geographies with new projects
The Enviro Infra Engineers IPO includes a new issuance of 3.87 crore equity shares and a sale of 52.68 lakh shares by the selling shareholders (promoters).
The company intends to use the proceeds from the new issue to achieve several objectives, including addressing the Working Capital Requirements; providing financial support to our subsidiary, EIEL Mathura Infra Engineers Private Limited (EIEL Mathura), for the construction of 60 MLD STP under the initiative titled ‘Mathura Sewerage Scheme’ in Mathura, Uttar Pradesh, utilizing the Hybrid Annuity Based PPP Mode; paying off or partially settling certain existing borrowings; and facilitating growth through unspecified acquisitions and general corporate purposes.
The initial public offer of Enviro Infra Engineers IPO has been subscribed 3x on the second day of subscription today, at 10:12 IST, as per BSE data.
The initial share sale received bid for 9,23,10,162 shares against 3,07,93,600 shares on offer, according to BSE.
The portion for retail investors received 2.37 times subscription while the quota for non-institutional investors got subscribed 5.70 times. The qualified institutional buyers (QIBs) part is booked 2.05 times. The employee portion has been booked 4.62 times.
Enviro Infra Engineers Ltd specializes in designing, constructing, operating, and maintaining Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities and agencies. WWTPs include Sewage Treatment Plants (STPs), Sewerage Schemes (SS), and Common Effluent Treatment Plants (CETPs). WSSPs encompass Water Treatment Plants (WTPs), along with pumping stations and the installation of pipelines for water supply.
At the upper price band of ₹148, EIEL is available at a P/E of 23.9x (FY24), which appears to be fairly priced compared to listed peers. The ambitious initiatives of the Indian government, such as the Jal Jeevan Mission-Har Ghar Jal, AMRUT, the NAMAMI Gange Programme, and SWAJAL, present significant opportunities for the company's future growth.
With a robust order pipeline and consistent financial performance featuring industry-leading margins, the company is well-positioned for future success. We recommend “subscribe" rating for the issue for medium- to long-term investment.
Enviro Infra Engineers IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved up to 1,00,000 equity shares and a discount of ₹13 per share is being offered to eligible employees.
Enviro Infra Engineers IPO GMP today or grey market premium is +52. This indicates Enviro Infra Engineers share price were trading at a premium of ₹52 in the grey market on Monday, 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 ₹200 apiece, which is 35.14% higher than the IPO price of ₹148.
Grey market activity over the prior nine sessions indicates that today's IPO GMP is positive and anticipates a successful listing. According to experts on investorgain.com, the lowest GMP is ₹0, and the maximum is ₹52.
'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.
