Enviro Infra Engineers IPO: Price band set at ₹140-148 per share; check issue details, key dates, more

Enviro Infra Engineers IPO price band: The Enviro Infra Engineers Limited IPO price band has been fixed in the range of ₹140 to ₹148 per equity share of the face value of ₹10. The Enviro Infra Engineers IPO date of subscription is scheduled for Friday, November 22, and will close on Tuesday, November 26. The allocation to anchor investors for the Enviro Infra Engineers IPO is scheduled to take place on Thursday, November 21.

The floor price is 14 times the face value of the equity shares and the cap price is 14.80 times the face value of the equity shares. The price to earnings ratio based on diluted EPS for financial year ended 2024 for the company at the upper end of the price band is as high as 18.20 times and at the lower end of the price band is 17.22 times as compared to the average industry peer group P/E ratio of 33.45 times. The Enviro Infra Engineers IPO lot size is 101 equity shares and in multiples of 101 equity shares thereafter.

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.

Tentatively, Enviro Infra Engineers IPO basis of allotment of shares will be finalised on Wednesday, November 27, and the company will initiate refunds on the same day, while the shares will be credited to the demat account of allottees on Thursday, November 28 following refund. Enviro Infra Engineers share price is likely to be listed on BSE and NSE on Friday, November 29.

Enviro Infra Engineers Limited was founded in 2009 and focuses on the design, construction, operation, and maintenance of water and wastewater treatment facilities (WWTPs) as well as water supply initiatives (WSSPs) for government entities. WWTPs consist of Sewage Treatment Plants (STPs), Sewerage Schemes (SS), and Common Effluent Treatment Plants (CETPs), while WSSPs cover Water Treatment Plants (WTPs), pumping stations, and the installation of pipelines for water distribution.

The company engages in tenders issued by state governments and urban local bodies (ULBs) for the establishment of WWTPs and WSSPs on an EPC or HAM model. As of June 30, 2024, the company has successfully completed 28 WWTPs and WSSPs throughout India over the past seven (7) years, which includes 22 projects of 10 MLD capacity and above.

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).

Enviro Infra Engineers saw a revenue growth of 116%, while the profit after tax (PAT) surged by 101% for the financial year ending March 31, 2024 compared to March 31, 2023.

Enviro Infra Engineers IPO details

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.

Hem Securities Limited serves as the book running lead manager for the IPO of Enviro Infra Engineers, whereas Bigshare Services Pvt Ltd acts as the registrar for this offering.

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