Concord Enviro Systems listing price: Shares of Concord Enviro Systems made a healthy debut on the stock exchanges on Friday, December 27 as they listed at ₹832 on the BSE, a premium of 18.69 per cent over the issue price of ₹701.
Meanwhile, on NSE, Concord Enviro Systems share price listed at a premium of 17.83 per cent at ₹826.
Concord Enviro Systems IPO, which ran from December 19 to December 23, closed with a subscription of 10.67 times. The IPO received bids for 5,35,33,347 shares as against 50,15,356 shares on offer. The qualified institutional buyer quota was subscribed 17.32 times, the non-institutional investor quota 14.2 times and the retail portion 5.56 times.
The public offer of Concord Enviro Systems was priced in the range of ₹665-701 per share, with the company looking to raise ₹500 crore at the upper end of the price band. The issue was a mix of fresh shares worth ₹175 crore and an offer for sale of ₹325.33 crore.
Namrata Goel, Nidhi Goel, Pushpa Goel, Prayas Goel and Prerak Goyal are the promoters who sold stakes via the share sale while AF Holdings is the investor-selling shareholder.
Out of the fresh funds raised, the company plans to use it for investment in the wholly owned subsidiaries, Concord Enviro FZE and Rochem Separation Systems (India) Private Limited, to finance capital expenditure for greenfield and brownfield projects (U.A.E. and Vasai Projects), expand manufacturing, and support working capital needs.
IPO Objective
Funding will also cover plant and machinery purchases, prepayment of borrowings, growth initiatives, joint venture investments (Reserve Enviro Private Limited), and technology advancements to access new markets, along with general corporate purposes.
Concord Enviro Systems’ revenue increased by 46% year-on-year (YoY) to ₹627.68 crore in the financial year 2024 while its profit after tax (PAT) surged a whopping 655% YoY to ₹41.44 crore. However, the company reported negative cash flows of ₹42 crore in FY24, which concerned analysts.
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