Denta Water and Infra Solutions Limited is a rapidly growing company, founded in 2016, that specializes in water and infrastructure solutions. The company is particularly focused on groundwater recharging projects, which use recycled water. In addition to its core offerings, Denta Water also undertakes railway and highway construction projects, positioning itself as a versatile and environmentally conscious infrastructure provider.

IPO Details
The company’s IPO is a fixed-price issue amounting to ₹ 220.50 Crores, with the issue consisting entirely of 75 lakh fresh shares. The price band for the IPO is set at ₹ 279 to ₹ 294 per share, and the lot size is 50 shares. Retail investors need to invest a minimum of ₹ 14,700, while High Net-Worth Individuals (HNIs) must invest a minimum of ₹ 2,05,800 for 14 lots. The subscription period runs from January 20, 2025 to January 24, 2025, with the allotment date set for January 27, 2025. The listing date on BSE and NSE is tentatively scheduled for January 29, 2025.

Grey Market Premium (GMP)
The Grey Market Premium (GMP) for the Denta Water IPO has shown positive growth, with ₹ 132 on January 22, 2025, signaling an expected 44.89% gain upon listing. This is a strong indication of the IPO's potential for listing gains. However, it’s important to note that GMP is not always a reliable predictor, as it is based on unregulated trading outside the formal market.

IPO Subscription Status
As of 7:00 PM on January 24, 2025, the Denta Water IPO was subscribed 221.68 times on its final day of subscription. This overwhelming demand indicates strong investor interest and suggests that the IPO will likely see high demand upon listing.

Financial Performance and Metrics
Denta Water has shown steady financial growth in recent years. The revenues for the year ending September 30, 2024, were ₹ 985.10 million, and for the fiscal year 2024, the company reported ₹ 2,418.37 million in revenue. Alongside this, the company’s EBITDA and Profit After Tax (PAT) have also exhibited steady growth, confirming its robust operational capabilities.

• The pre-issue EPS stands at ₹ 31.11, with a post-issue EPS of ₹ 22.37 for FY24.
• The P/E ratio before the issue is 9.45x, and after the issue, it is 13.14x, which is relatively lower compared to the industry average P/E ratio of 35x.
• The company’s ROCE for FY24 is 76.99%, and the ROE stands at 36.36%, suggesting efficient use of capital and strong profitability.

Utilization of IPO Proceeds
The funds raised from the IPO will be used for the following purposes:

1. ₹ 150 Crores for working capital requirements.
2. ₹ 70.50 Crores for general corporate purposes.

Why Invest in the Denta Water and Infra Solutions IPO?
The company has strong financial metrics and operates in a growing and vital sector—water management and infrastructure. The GMP of ₹ 132 suggests a potential for listing gains. Given the company’s positive financial performance, efficient capital utilization, and versatile project portfolio, this IPO appears to be an attractive investment for those seeking both short-term gains and long-term growth. The lower P/E ratio also suggests that the IPO is fairly priced compared to its industry peers.

Denta Water and Infra Solutions IPO Allotment Date and Status
The allotment date for the Denta Water and Infra Solutions IPO is January 27, 2025, and the status can be checked on the Registrar’s website using either the application number, PAN, or DP Client ID.

Conclusion

With a strong Grey Market Premium, healthy financial growth, and the robust demand indicated by the high subscription numbers, the Denta Water and Infra Solutions IPO offers an excellent opportunity for investors. The company’s expertise in water management solutions and its commitment to sustainable infrastructure make it a promising player in the industry. For those looking to capitalize on listing gains, this IPO presents a favorable proposition.

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