Denta Water and Infra Solutions Limited, established in 2016, is a growing company specializing in water and infrastructure solutions. Known for its expertise in groundwater recharging projects, Denta Water designs, installs, and commissions water management infrastructure. The company also provides operation and maintenance services for water treatment plants. In addition to water-related projects, Denta Water is involved in railway and highway construction, positioning itself as a versatile infrastructure player.

The IPO is set to raise ₹220.50 crore through a Fixed Price Issue offering 75 lakh shares. The IPO opens on January 20, 2025, and closes on January 24, 2025. The price band is set at ₹279 to ₹294 per equity share, with a market capitalization of ₹784.98 crore at the upper price band. The lot size is 50 shares, with a minimum investment of ₹14,700 for retail investors and a minimum of 14 lots (700 shares) for High-Net-Worth Individuals (HNIs), totaling ₹2,05,800.

Key IPO Dates:

• IPO Subscription Period: January 20-24, 2025
• IPO Allotment Date: January 27, 2025
• Tentative Listing Date: January 29, 2025

The IPO is managed by SMC Capitals Limited as the book running lead manager, with Integrated Registry Management Services Private Limited as the registrar.

Denta Water and Infra Solutions IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Denta Water and Infra Solutions stands at ₹110, indicating a potential listing gain of 37.41% based on the upper price band of ₹294 per share. However, trading in the grey market is speculative, and GMP figures should be taken as informational and educational only.

Financial Performance and Valuation

Denta Water has shown consistent growth over the years:

• Revenue from Operations: ₹985.10 million (Sep 2024), ₹2,418.37 million (FY 2024)
• Profit after Tax (PAT): ₹241.99 million (Sep 2024), ₹597.25 million (FY 2024)
• EBITDA: ₹334.96 million (Sep 2024), ₹823.76 million (FY 2024)

The Pre-issue EPS stands at ₹31.11, with a Post-issue EPS of ₹22.37 for FY24. The Pre-issue P/E ratio is 9.45x, while the Post-issue P/E ratio is 13.14x, significantly lower than the industry average of 35x.

Use of Proceeds

The company intends to utilize the net proceeds from the IPO for the following purposes:

1. ₹150.00 crore for working capital requirements.
2. ₹70.50 crore for general corporate purposes.

Investment Outlook

With strong financial performance and a GMP indicating significant listing gains, Denta Water and Infra Solutions IPO presents a promising opportunity for investors seeking potential listing gains. The company's involvement in groundwater recharging and infrastructure projects positions it as a key player in the growing water and infrastructure sector.

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