Apex Ecotech Limited, known for its end-to-end water and wastewater management solutions, has successfully launched its Book Built Issue IPO, raising ₹25.54 Crores. The company, which specializes in Industrial Water Treatment, Effluent Treatment, Sewage Treatment, and Zero Liquid Discharge (ZLD), is committed to delivering sustainable, eco-friendly water management projects. The IPO is set to list on the NSE SME platform, with the tentative listing date scheduled for December 4, 2024.

IPO Overview and Financial Details

The Apex Ecotech IPO comprises a fresh issue of 34.99 lakh shares, with a price band set at ₹71 to ₹73 per share. The issue opened on November 27, 2024, and closed on November 29, 2024. The company's market capitalization, at the upper price band of ₹73, stands at ₹96.25 Crores.

The lot size for the IPO is 1,600 shares, requiring a minimum investment of ₹1,16,800 for retail investors. For High-Net-Worth Individuals (HNIs), a minimum investment of ₹2,33,600 (2 lots) is required.

Subscription and GMP Insights

The subscription for Apex Ecotech's IPO has been phenomenal, with the IPO being subscribed a total of 420.73 times by the final day of the subscription period. This high level of interest indicates robust demand for the company's shares.

As per the Grey Market Premium (GMP), Apex Ecotech's IPO is expected to witness a 20% listing gain, with a premium of ₹15 per share over the issue price. While the GMP gives an idea of investor sentiment, it is not a reliable indicator of the future market performance of the stock. GMP should be taken as an informational reference rather than a definitive prediction of listing outcomes.

Financial Performance and Metrics

Apex Ecotech has shown solid financial performance in recent years. The company reported revenues of ₹2,182.60 Lakhs for the quarter ended September 30, 2024, showing growth from the previous fiscal periods. The EBITDA for the same quarter was ₹220.41 Lakhs, and the Profit After Tax (PAT) stood at ₹155.26 Lakhs.

The company’s profitability has significantly improved from a loss of ₹65.86 Lakhs in fiscal 2022 to a profit of ₹663.04 Lakhs in fiscal 2023. The company’s ROCE (Return on Capital Employed) for FY24 is 59.61%, and RoNW (Return on Net Worth) is 60.38%, highlighting a strong growth trajectory.

Use of IPO Proceeds

The funds raised from the Apex Ecotech IPO will be utilized for the following purposes:

1. ₹1,700 Lakhs will be allocated to meet the company's working capital requirements.
2. The remaining funds will be used for general corporate purposes.

Valuation and IPO Pricing

The pre-issue EPS of Apex Ecotech is ₹7.25, while the post-issue EPS is ₹5.03. The pre-issue P/E ratio is 10.07x, and the post-issue P/E ratio is 14.52x, which is lower than the industry P/E ratio of 30x, suggesting that the IPO is priced reasonably. These metrics, along with the company's strong financials, make this IPO an attractive proposition for investors looking for growth in the environmental solutions sector.

Key Takeaways

Apex Ecotech Limited's IPO, with a grey market premium of 20%, looks promising for risk-taking investors seeking listing gains. The company’s strong financials, coupled with its leadership in providing eco-friendly water management solutions, make it a viable investment opportunity for those looking to invest in the growing environmental and sustainability sector.

The Upcoming IPOs in this week and coming weeks are Nisus Finance, Emerald Tyre Manufacturers, Jungle Camps, Purple United, Rosmerta Digital and Avanse Financial.The Current active IPO is Ganesh Infraworld and Suraksha Diagnostic.For more details on upcoming IPOs, you can visit our page at Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated with the latest news on IPO updates on Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in Choice Broking FinX.