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Concord Enviro Systems IPO subscribed 0.31 times on Day 1. Check GMP and other details
Team Finance Saathi
19/Dec/2024
What's covered under the Article:
- Detailed insights on Concord Enviro Systems IPO including the share price, GMP, and listing details.
- Information on the subscription status and allotment process for investors.
- Objective of the IPO, use of funds, and review of the company’s financials.
Concord Enviro Systems, a leader in industrial wastewater treatment and Reverse Osmosis technology, is launching its IPO with an aim to raise ₹500.33 Crores. This book-built issue includes a fresh issue of ₹175.00 Crores and an offer for sale worth ₹325.32 Crores. The IPO opens on December 19, 2024, and closes on December 23, 2024, with a tentative listing date set for December 27, 2024 on the BSE and NSE. The IPO price band is set between ₹665 and ₹701 per share.
The market capitalization of Concord Enviro Systems Limited at the upper price band of ₹701 per share will be ₹1,450.80 Crores. The lot size is 21 shares, and the minimum retail investment is ₹14,721. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,06,094 for 14 lots. Motilal Oswal Investment Advisors Limited and Equirus Capital Private Limited are the lead managers for the IPO.
Concord Enviro Systems IPO GMP
The Grey Market Premium (GMP) for Concord Enviro Systems IPO as of December 18, 2024, is ₹154, indicating a potential listing gain of 21.97%. This premium can give investors an idea of the potential post-listing performance, but it’s essential to note that Grey Market Premium is speculative and unregulated. No real trading is conducted based on this premium, and it’s shared for educational and informational purposes only.
Live Subscription Status
As of December 19, 2024, the IPO is subscribed 0.30 times on its first day of the subscription period. Investors can track the live subscription status and get real-time updates on the BSE website.
IPO Objectives
Concord Enviro Systems has outlined the following objectives for the funds raised:
- ₹250.00 Million for investment in its subsidiary Concord Enviro FZE to support a greenfield project in the U.A.E. focused on water treatment and membrane module assembly.
- ₹105.05 Million for expanding its manufacturing facilities and operations through a brownfield project at Vasai.
- ₹32.07 Million for purchasing plant and machinery for its operations.
- ₹500.00 Million to repay or prepay borrowings from Concord Enviro FZE.
- ₹200.00 Million for working capital requirements of Concord Enviro FZE.
- ₹100.00 Million for investing in its joint venture Roserve Enviro Private Limited.
- ₹235.00 Million for investing in technology to access new markets.
- General corporate purposes.
Financial Performance Review
Concord Enviro Systems has posted a revenue of ₹5,122.74 Million for FY 2024, showing a strong growth trajectory over previous years. Despite some fluctuations in Profit after Tax (PAT), the company has demonstrated strong operational capabilities with a ROCE of 14.07% and RoE of 13.73% for FY 2024.
Valuation and Pricing
The IPO is priced at a pre-issue P/E ratio of 30.79x and post-issue P/E ratio of 34.88x, which is attractive when compared to the industry average P/E ratio of 49x. However, given the company’s financial performance, growth prospects, and market conditions, investors should carefully evaluate whether this IPO aligns with their investment goals.
Key Takeaways:
- The Concord Enviro Systems IPO offers a strong subscription opportunity, especially for investors looking at green technology and environmental solutions.
- The IPO grey market premium of ₹154 suggests strong listing gains for investors.
- The company’s expansion plans, financial performance, and the strong promoter background offer a solid foundation for long-term growth.
Conclusion
Investors considering the Concord Enviro Systems IPO should look at the company's market positioning in the wastewater treatment and green technology sectors, alongside its growth prospects. The GMP is showing a positive trend, suggesting potential for strong returns post-listing. However, as with any investment, there are risks involved, and a detailed understanding of the company’s financials and objectives is essential.
The Upcoming IPOs in this week and coming weeks are Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse Financial.
The Current active IPO is Transrail Lighting, Mamata Machinery, DAM Capital Sanathan Textiles, Concord Enviro, Newmalayan Steel, Identical Brain Studios and NACDAC Infrastructure.