Concord Enviro Systems, a pioneering company in the field of Reverse Osmosis (RO) and industrial wastewater treatment, is gearing up for its IPO (Initial Public Offering). The company, which has been at the forefront of Green ZLD (Zero Liquid Discharge) solutions for the past 30 years, is aiming to raise ₹500.33 Crores through the issue. This consists of a fresh issue of 24.96 lakh shares worth ₹175.00 Crores and an Offer for Sale (OFS) of 46.40 lakh shares worth ₹325.32 Crores. The subscription period for the Concord Enviro Systems IPO opens on December 19, 2024, and closes on December 23, 2024.

The price band for the IPO is set between ₹665 and ₹701 per equity share. At the higher end of the price range, the company will have a market capitalization of ₹1,450.80 Crores. The lot size is 21 shares, and the minimum investment for retail investors is ₹14,721. For High-Net-Worth Individuals (HNIs), the minimum investment requirement is 14 lots (294 shares), amounting to ₹2,06,094.

Concord Enviro Systems IPO Subscription Status

As of December 20, 2024, the Concord Enviro Systems IPO has been subscribed 1.24 times on the second day of the subscription period. This indicates a healthy demand for the company’s shares, with the market showing interest in its cutting-edge wastewater treatment technologies.

Grey Market Premium (GMP) and Expected Listing Price

The Grey Market Premium (GMP) for the Concord Enviro Systems IPO is reported to be ₹154, which reflects an expected 21.97% premium on the IPO price. This suggests that the IPO could list at around ₹855, based on current market trends. However, investors are advised to treat grey market trading with caution, as it is unregulated and speculative.

Concord Enviro Systems IPO Allotment Process

The allotment date for the Concord Enviro Systems IPO is set for December 24, 2024. Investors can check the status of their allotment on the Registrar’s website by following these steps:

1. Go to the IPO allotment status page.
2. Select Concord Enviro Systems IPO from the dropdown list.
3. Enter the application number, PAN, or DP Client ID.
4. Submit the details to view your allotment status.

Objectives of the Concord Enviro Systems IPO

The net proceeds from the Concord Enviro Systems IPO will be used for several initiatives:

1. Investment in Subsidiaries: ₹250 million for Concord Enviro FZE (UAE) and ₹105.05 million for Rochem Separation Systems (India).
2. Capital Expenditure: ₹32.07 million for purchasing plant and machinery.
3. Debt Repayment: ₹500 million to repay outstanding borrowings of Concord Enviro FZE.
4. Working Capital Requirements: ₹200 million for Concord Enviro FZE.
5. Investment in Joint Venture: ₹100 million for Roserve Enviro Private Limited.
6. Technology and Growth: ₹235 million for access to new markets and tech investments.

Financial Performance and Valuation Metrics

As of August 31, 2024, Concord Enviro Systems reported revenues from operations of ₹2,080.24 million, with EBITDA of ₹154.16 million. The company’s Profit after Tax (PAT) for the period was a loss of ₹11.07 million.

The pre-issue EPS stands at ₹22.7, and the post-issue EPS is ₹20.10. The P/E ratio for the IPO is 30.79x (pre-issue) and 34.88x (post-issue), compared to the industry P/E ratio of 49x. With a ROCE of 14.07% and RoE of 13.73% for FY24, the IPO appears reasonably priced.

IPO Review and Recommendation

Concord Enviro Systems is a key player in the industrial wastewater treatment space, offering innovative Reverse Osmosis and Zero Liquid Discharge (ZLD) solutions. The company’s financials show a healthy growth trajectory, although it posted a loss for the period ending August 31, 2024.

The GMP of ₹154 indicates strong listing gains of 21.97%. However, given the IPO’s valuation and the company’s current loss, we recommend avoiding the Concord Enviro Systems IPO if you are looking for immediate listing gains. For long-term investors, however, the company’s leading position in the wastewater management industry and growth prospects make it a potentially solid investment.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Unimech Aerospace, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro and Newmalayan Steel. For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX