Concord Enviro Systems has established itself as a leading player in industrial wastewater solutions, with over three decades of experience. The company, known for pioneering Reverse Osmosis and cutting-edge Green ZLD solutions, is now gearing up for its IPO in 2024, which offers investors an opportunity to tap into a growing industry. The Concord Enviro Systems IPO comes with a price band of ₹665 to ₹701 per equity share, with a total issue size of ₹500.33 Crores. The IPO consists of fresh issue shares worth ₹175.00 Crores and an offer for sale (OFS) of 46.40 Lakh shares totaling ₹325.32 Crores.

The subscription period for the IPO opens on December 19, 2024, and closes on December 23, 2024. The allotment date is expected to be on December 24, 2024, and shares are anticipated to be listed on the BSE & NSE around December 27, 2024. The lot size is 21 shares, with retail investors needing to invest a minimum of ₹14,721.

Company Overview:
Founded in 1992, Concord Enviro Systems has continuously innovated in the industrial wastewater treatment sector. With expertise in Reverse Osmosis and Zero Liquid Discharge (ZLD) technologies, the company is committed to promoting a circular economy through its green solutions. With the growing demand for sustainable wastewater treatment solutions, Concord Enviro is well-positioned to expand its operations globally, particularly in the Middle East and India.

Financial Overview:
For the fiscal year 2024, Concord Enviro Systems reported revenues of ₹5,122.74 million, a significant growth from the previous year. However, the Profit After Tax (PAT) for FY24 was a negative ₹11.07 million, indicating challenges that the company has been navigating. Despite this, the company’s EBITDA for the period was ₹836.64 million, showcasing its operational strength.

The EPS for the pre-issue period stands at ₹22.7, with the post-issue EPS expected to be ₹20.10. This places the IPO’s pre-issue P/E ratio at 30.79x and the post-issue P/E ratio at 34.88x, which is attractive compared to the industry’s average P/E ratio of 49x.

Grey Market Premium (GMP):
As of December 18, 2024, the Grey Market Premium (GMP) for the Concord Enviro Systems IPO is around ₹154, suggesting a potential listing gain of 21.97%. While the GMP provides an indication of investor sentiment, it is important to note that GMP values are not always a reliable measure, as they are based on unofficial trading in the grey market and can fluctuate based on demand and supply.

Subscription Status:
As of December 23, 2024, the Concord Enviro Systems IPO was subscribed 10.67 times, indicating a strong demand for the issue. This strong subscription rate could indicate confidence from institutional and retail investors alike, which bodes well for the potential performance of the stock once it is listed.

Objectives of the Concord Enviro Systems IPO:
The net proceeds from the IPO will be utilized for various purposes, including:

1. Investment in Subsidiary Concord Enviro FZE: Funding the development of an assembly unit in the UAE for wastewater treatment and related modules.
2. Expansion of Manufacturing Facilities: Investment in expanding the Vasai Project through the subsidiary Rochem Separation Systems.
3. Capital Expenditure: Funding the purchase of plant and machinery to enhance production capabilities.
4. Debt Repayment: Repayment of certain outstanding borrowings availed by Concord Enviro FZE.
5. Technology Investments: Focus on increasing access to new markets through technological advancements.
6. General Corporate Purposes: Allocating funds for the ongoing growth of the company.

Why Invest in Concord Enviro Systems IPO?
Given its strong track record in the industrial wastewater sector and its ongoing innovation in Green ZLD solutions, Concord Enviro Systems offers potential for growth in the circular economy. Despite some financial challenges in FY24, the company is well-positioned to capitalize on the rising demand for sustainable water treatment technologies. With a fair pricing strategy, the IPO provides an opportunity for both retail and institutional investors to participate in this growth story.

The Upcoming IPOs in this week and coming weeks are Anya Polytech, Citichem India, Solar91 Cleantech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, Ventive Hospitality, Senores Pharmaceuticals, Carraro India.
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