The Enviro Infra Engineers Limited IPO has garnered strong investor interest, with the subscription period running from November 22 to November 26, 2024. The company is offering a book-built issue worth ₹650.43 crores, including a Fresh Issue of 386.80 lakh shares and an Offer for Sale (OFS) of 52.68 lakh shares. The price band for the IPO is set at ₹140 to ₹148 per share, with the market capitalization at ₹2,597.84 crores at the upper price band.

Enviro Infra Engineers IPO Subscription and Allotment Details

The lot size for the IPO is 101 shares, with a minimum investment of ₹14,948 for retail investors. High-Net-Worth Individuals (HNIs) must invest in at least 14 lots (1,414 shares), totaling ₹2,09,272. As of November 26, 2024, the IPO has been subscribed 89.90 times, indicating strong demand.

The Grey Market Premium (GMP) for the Enviro Infra Engineers IPO is expected to be ₹45, or 30%, signaling a potential upside for investors post-listing. However, it's important to note that the Grey Market Premium is based on unorganized market dynamics and is not a guarantee of future performance.

Company Overview and Financial Performance

Enviro Infra Engineers (EIEL) specializes in the design, construction, operation, and maintenance of Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government bodies. With over 15 years of experience, the company has successfully delivered numerous projects focused on environmental sustainability and water management.

For the fiscal years 2024, 2023, and 2022, the company reported steady revenue growth:

• Revenue: ₹73,800.46 lakhs in FY24, ₹34,166.24 lakhs in FY23, and ₹22,562 lakhs in FY22.
• EBITDA: ₹17,841.20 lakhs in FY24, ₹8,524.78 lakhs in FY23, and ₹5,212.11 lakhs in FY22.
• Profit After Tax (PAT): ₹10,856.95 lakhs in FY24, ₹5,533.89 lakhs in FY23, and ₹3,454.86 lakhs in FY22.

This indicates consistent financial growth and strong profitability, driven by the company's expansion in the water treatment sector.

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Valuation and Market Outlook

The pre-issue EPS of the company is ₹8.13, while the post-issue EPS is expected to be ₹6.30. The P/E ratio at the issue price is 18.20x (pre-issue) and 23.50x (post-issue), which is fairly priced relative to the industry P/E of 30x. With an ROE of 51.68% and an ROCE of 32.34% in FY24, the company's high return ratios indicate that it is efficiently utilizing its capital, further reinforcing its strong investment case.

Objectives of the Enviro Infra Engineers IPO

Proceeds from the IPO will be utilized for:

1. ₹18,100 Lakhs to meet the company’s working capital requirements.
2. ₹3,000 Lakhs for investment in the subsidiary EIEL Mathura to build a 60 MLD STP under the Mathura Sewerage Scheme.
3. ₹12,000 Lakhs for repayment of borrowings.
4. The remainder will be used for inorganic growth and general corporate purposes.

Enviro Infra Engineers IPO Review and Investment Advice

The Enviro Infra Engineers IPO presents a compelling investment opportunity with strong financials, a promising market outlook, and a 30% GMP, indicating strong potential for listing gains. Given the company's solid track record in the water treatment and supply industry, as well as its fair pricing, this IPO offers a good opportunity for both listing gains and long-term investment.

Investors should consider applying for the Enviro Infra Engineers IPO, especially with the strong subscription numbers and positive market sentiment. The company’s consistent financial growth and high return ratios suggest that it is well-positioned to continue its upward trajectory.

To check your Enviro Infra Engineers IPO allotment status, visit the Registrar Website after the allotment date of November 27, 2024. You can enter your application number, PAN, or DP Client ID to track your allotment. Stay updated on the live subscription status and IPO developments at BSE and NSE.

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