Enviro Infra Engineers Limited (EIEL) made a remarkable debut on the stock exchange on November 29, 2024, with shares listing at ₹220 on the NSE, marking a substantial premium of 49% over the IPO price of ₹148. The BSE opening price stood at ₹218, reflecting a 47.29% premium, signaling strong market interest and investor confidence. This stellar performance on Dalal Street has garnered significant attention, with the company's stock debut being a major talking point in the IPO market.

Key Highlights of Enviro Infra Engineers IPO:

• The IPO offered a fresh issue of 386.80 lakh shares valued at ₹572.33 crore, alongside an offer for sale of 52.68 lakh shares worth ₹77.97 crore.
• With a price band of ₹140 to ₹148 per share, retail investors could apply for a minimum lot of 101 shares, amounting to ₹14,948, while HNIs had a higher minimum investment requirement.
• The IPO was oversubscribed by a significant margin, with 89.90 times the total number of shares being subscribed by the final day.

The proceeds from the Enviro Infra Engineers IPO are being utilized for various strategic objectives, including working capital requirements, debt reduction, and funding expansion plans through acquisitions. Additionally, the company is committed to expanding its presence in the water and wastewater treatment sector, a key focus of its operations.

Financial Strength:

Enviro Infra Engineers has shown impressive growth in recent years. For fiscal 2024, the company's revenue stood at ₹73,800.46 lakh, up from ₹34,166.24 lakh in fiscal 2023 and ₹22,562 lakh in fiscal 2022. The company has posted consistent growth in its EBITDA, from ₹8,524.78 lakh in fiscal 2023 to ₹17,841.20 lakh in fiscal 2024, demonstrating its capacity for sustained profitability. Profit after Tax (PAT) for fiscal 2024 was ₹10,856.95 lakh, reflecting a strong upward trajectory.

IPO Pricing and Valuation:

The pre-issue EPS was ₹8.13, with a post-issue EPS of ₹6.30, giving the company a pre-issue P/E ratio of 18.20x and a post-issue P/E ratio of 23.50x. This is favorable compared to the industry average P/E ratio of 30x, making the IPO a reasonably priced opportunity for investors. The company's Return on Capital Employed (ROCE) for FY24 stands at 32.34%, while its Return on Equity (RoE) is an impressive 51.68%.

The Upcoming IPOs in this week and coming weeks are Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is Ganesh Infraworld, Suraksha Diagnostic, Agarwal Toughened, Apex Ecotech, Abha Power and Steel.

Market Debut and Grey Market Premium:

Prior to listing, the Grey Market Premium (GMP) for Enviro Infra Engineers was ₹45, signaling potential listing gains of 30%. While GMP is not a guaranteed indicator of future performance, it provides a glimpse into the demand for the company's shares. The company's financial performance, robust subscription figures, and favorable market sentiment contributed to the successful listing.

Investors’ Guide:

Investors who subscribed to the Enviro Infra Engineers IPO can now check their allotment status online. The allotment date was set for November 27, 2024, with investors being able to check their status via the registrar’s website. The company’s strong financials and promising future in the environmental infrastructure sector make it an attractive prospect for both short-term gains and long-term investments.

In conclusion, Enviro Infra Engineers' debut on the stock exchange is an exciting milestone. With its strong market debut and solid financials, it offers a promising opportunity for those looking to invest in the growing infrastructure sector. Investors are advised to stay updated with the latest IPO news, stock market trends, and investment insights.

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