Apex Ecotech Limited, a leader in water and wastewater management solutions, is offering an IPO with a Book Built Issue amounting to ₹25.54 Crores, consisting entirely of a Fresh Issue of 34.99 Lakh shares. The subscription period for this IPO runs from November 27, 2024, to November 29, 2024. The allotment date is expected to be finalized by December 2, 2024, and the shares will be listed on the NSE SME with a tentative listing date on December 4, 2024.

The IPO price band is set between ₹71 and ₹73 per equity share. At the upper price of ₹73, the market capitalization of Apex Ecotech Limited will be ₹96.25 Crores. The lot size is 1,600 shares, with a minimum investment of ₹1,16,800 for retail investors and ₹2,33,600 for High-Net-Worth Individuals (HNIs).

Apex Ecotech specializes in end-to-end solutions for industrial water treatment, effluent treatment, sewage treatment, and zero liquid discharge (ZLD), providing turnkey projects with services including design, installation, commissioning, and operation and maintenance (O&M). The company’s sustainable approach ensures efficient and eco-friendly water management. Apex Ecotech serves diverse industries, offering solutions that help clients meet environmental regulations and reduce operational costs.

The company is led by Mr. Anuj Dosajh, Chairman and Managing Director, who has 36 years of experience in the water and wastewater industry, alongside Mr. Ramakrishnan Balasundaram Aiyer and Mr. Ajay Raina, both of whom bring over 20 years of industry experience.

The financial performance of Apex Ecotech has shown steady growth. For the fiscal years 2024, 2023, and 2022, the company reported revenues of ₹5,346.49 Lakhs, ₹3,492.06 Lakhs, and ₹2,002.86 Lakhs, respectively. The EBITDA for the same periods was ₹926.48 Lakhs, ₹453.24 Lakhs, and ₹8.54 Lakhs, respectively. The Profit After Tax (PAT) for FY24 was ₹663.04 Lakhs, showing significant improvement from the previous years, including a PAT loss of ₹65.86 Lakhs in FY22.

For the Apex Ecotech IPO, the company is issuing shares at a pre-issue EPS of ₹7.25 and post-issue EPS of ₹5.03. The pre-issue P/E ratio is 10.07x, and the post-issue P/E ratio is 14.52x, compared to the industry average P/E ratio of 30x, indicating that the IPO is fairly priced. The company’s Return on Capital Employed (ROCE) for FY24 is an impressive 59.61%, and its Return on Net Worth (RoNW) for the same period stands at 60.38%, which suggests efficient capital utilization and strong profitability potential.

The Upcoming IPOs in this week and coming weeks are Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is Ganesh Infraworld, Suraksha Diagnostic, Agarwal Toughened, Apex Ecotech, Abha Power and Steel.

The Grey Market Premium (GMP) of Apex Ecotech IPO stands at ₹15, indicating a potential listing gain of around 20%. While the grey market premium shows promise, investors should note that it depends on demand and supply in the unregulated market, and actual price discovery will occur only upon the official listing of shares.

Apex Ecotech IPO Allotment Status will be available on December 2, 2024, and can be checked through the registrar’s website. To view the allotment status, follow the steps outlined on the registrar's page, where you can enter your application number, PAN, or DP Client ID.

Investment Recommendation: Given the strong financial performance, reasonable pricing relative to the industry, and potential listing gains from the GMP, the Apex Ecotech IPO is recommended for risky investors seeking listing gains. However, long-term investors should also assess the company’s ability to sustain its growth trajectory in the eco-friendly water management sector.

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