Denta Water and Infra Solutions Limited is a prominent name in the water management and infrastructure sector, established in 2016. The company specializes in designing, installing, and commissioning groundwater recharging projects, using recycled water to ensure sustainable water management. Additionally, Denta Water also provides comprehensive operation and maintenance services for water treatment plants, making it a crucial player in the industry. With a focus on railway and highway construction, the company has cemented its position as a versatile and environmentally-conscious infrastructure provider.

The Denta Water and Infra Solutions IPO is a fixed price issue worth ₹220.50 Crores, offering 75 Lakh equity shares at a price band of ₹279 to ₹294 per share. The market capitalization of the company at the upper price band of ₹294 per share will be ₹784.98 Crores. The subscription period runs from January 20, 2025 to January 24, 2025, and the allotment will be finalized on January 27, 2025, with the listing date set for January 29, 2025.

Retail investors can invest a minimum of ₹14,700 (50 shares), while High-Net-Worth Individuals (HNIs) need to apply for at least 14 lots (700 shares), which will cost ₹2,05,800. The SMC Capitals Limited is the book running lead manager for this IPO, and Integrated Registry Management Services Private Limited is the registrar for the issue.

Denta Water IPO GMP Today

The Grey Market Premium (GMP) of Denta Water and Infra Solutions IPO shows a potential listing gain of 44.89%. The GMP for January 22, 2025, is ₹132, based on the company's strong financial performance. Although the GMP is not a reliable indicator for price discovery, it does suggest that the listing price could be substantially higher than the issue price, making the IPO attractive for those seeking potential short-term gains. The price trend indicates a steady increase in GMP as the subscription period progresses:

• January 22, 2025: ₹294 issue price, expected listing price ₹426, GMP ₹132 (44.89%)
• January 20, 2025: ₹294 issue price, expected listing price ₹404, GMP ₹110 (37.41%)
• January 18, 2025: ₹294 issue price, expected listing price ₹367, GMP ₹73 (24.83%)

Denta Water IPO Live Subscription Status

As of January 23, 2025, Denta Water IPO has been oversubscribed by 25.68 times on the second day of its subscription. This surge in demand reflects the strong investor interest, further enhancing the prospects for a successful listing. The live subscription status is available on the BSE website, providing real-time updates for investors.

Anchor Investors

The IPO has raised ₹66.15 Crores from Anchor Investors, with 22,50,000 equity shares allocated at ₹294 per share. This confirms the institutional backing for the IPO and suggests a positive outlook for the issue. The Anchor Investors’ participation at the upper price band adds credibility to the pricing and strengthens the case for listing gains.

Denta Water IPO Allotment Process

The allotment of Denta Water IPO shares will be finalized on January 27, 2025. Investors can check their allotment status online by visiting the Registrar’s website. The process is simple:

1. Visit the allotment status page.
2. Select Denta Water and Infra Solutions Limited IPO from the dropdown list.
3. Enter your application number, PAN, or DP Client ID and submit to view your status.

Objectives of the Denta Water IPO

The company plans to use the net proceeds of the IPO for the following:

1. ₹150.00 Crores for working capital requirements to support its growing business operations.
2. ₹70.50 Crores for general corporate purposes, enhancing its ability to scale and expand.

Financial Overview and Valuation

Denta Water has exhibited consistent revenue growth with ₹985.10 Million for the period ending September 30, 2024, and a Profit after Tax (PAT) of ₹241.99 Million. The pre-issue EPS is ₹31.11, and the post-issue EPS is expected to be ₹22.37 for FY24. The company’s P/E ratio is 9.45x, significantly lower than the industry average of 35x, making it an attractive valuation for investors. With a ROCE of 76.99% and ROE of 36.36%, Denta Water’s financials suggest steady growth and an attractive IPO for long-term investors.

Should You Apply for Denta Water IPO?

Given the strong financial performance, reasonable valuation, and impressive GMP trends, we recommend that investors consider applying for the Denta Water IPO for potential listing gains. The IPO is well-priced and backed by an experienced management team, making it a compelling opportunity for investors looking to participate in the growing infrastructure and water management sector.

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