The Enviro Infra Engineers Limited (EIEL) IPO is drawing significant attention from investors with its focus on water and wastewater treatment plants and water supply schemes for government authorities. The company, which has established itself as a key player in environmental infrastructure, is offering its IPO to raise funds for working capital and inorganic growth.

Enviro Infra Engineers IPO is a Book Built Issue worth ₹650.43 Crores, comprising a Fresh Issue of 386.80 lakh shares (₹572.33 Crores) and an Offer for Sale of 52.68 lakh shares (₹77.97 Crores). The IPO will be open for subscription from November 22, 2024, to November 26, 2024. The allotment date is expected to be November 27, 2024, with shares listed on the BSE and NSE on November 29, 2024.

The price band for the IPO is set between ₹140 and ₹148 per share, with a minimum lot size of 101 shares. For retail investors, the minimum investment is ₹14,948, while High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 14 lots (1,414 shares), totaling ₹2,09,272.

At the upper end of the price band, the market capitalization of Enviro Infra Engineers at ₹148 per share will be approximately ₹2,597.84 Crores. The IPO is being managed by Hem Securities Limited as the book-running lead manager, with Bigshare Services Pvt. Limited acting as the registrar.

Grey Market Premium (GMP) and Listing Expectations

As of now, the Grey Market Premium (GMP) for the Enviro Infra Engineers IPO is expected to be ₹45 (around 30%). This suggests potential listing gains once the shares are listed on the stock exchanges. However, investors should be cautious, as trading in the grey market is unregulated, and prices can fluctuate. The GMP provides a rough indication of demand but should not be relied upon for final investment decisions.

IPO Subscription and Anchor Investors

The subscription status for the IPO shows strong interest from investors. As of November 25, 2024, the IPO is 5.07 times subscribed. The Anchor Investors have already committed ₹194.69 Crores at ₹148 per share, with 1,31,54,400 equity shares allocated to them.

The Upcoming IPOs in this week and coming weeks are Rajputana Biodiesel, Apex Ecotech, Abha Power and Steel, Agarwal Toughened, Ganesh Infraworld, Rosmerta Digital, Avanse Financial and Nisus Finance.

For those following the Anchor Investors Report, it's important to note that the shares allotted to them are part of the Qualified Institutional Buyers (QIBs) reservation portion, and their participation indicates confidence in the offering.

IPO Allotment Process

The Enviro Infra Engineers IPO allotment date is scheduled for November 27, 2024. Investors can check the allotment status by visiting the registrar’s website and entering their application number, PAN, or DP Client ID. This process will allow investors to verify whether they have been allotted shares in the IPO.

Use of IPO Proceeds

The funds raised from the fresh issue will be used for several key purposes:

1. Working Capital: ₹18,100 Lakhs will be used to meet the company’s working capital needs, ensuring smooth operational capacity.
2. Subsidiary Funding: ₹3,000 Lakhs will be infused into EIEL Mathura Infra Engineers Private Limited for the Mathura Sewerage Scheme project in Uttar Pradesh.
3. Debt Repayment: ₹12,000 Lakhs will be used to reduce the company’s outstanding borrowings.
4. Corporate Growth: The balance will fund acquisitions and general corporate purposes.

Financial Overview and Valuation

Enviro Infra Engineers has shown strong financial performance in recent years, with revenues of ₹73,800.46 Lakhs in FY24, up from ₹34,166.24 Lakhs in FY23. The company’s EBITDA for FY24 stood at ₹17,841.20 Lakhs, reflecting a robust growth trajectory. Profit after Tax (PAT) for FY24 was ₹10,856.95 Lakhs, further highlighting the company’s financial strength.

The Current active IPO is Rajesh Power Services, C2C Advanced System, Enviro Infra Engineers and Lomosaic India.

The pre-issue EPS is ₹8.13, and the post-issue EPS is projected to be ₹6.30. With a pre-issue P/E ratio of 18.20x and post-issue P/E ratio of 23.50x, the IPO is priced lower than the industry average of 30x, suggesting that it is attractively valued. The Return on Capital Employed (ROCE) for FY24 is 32.34%, and Return on Equity (RoE) is a strong 51.68%, reflecting solid profitability and efficient capital use.

IPO Investment Recommendation

Given the company's robust growth, strong financial performance, and the market’s interest in water and wastewater treatment infrastructure, we recommend that investors consider applying for the Enviro Infra Engineers IPO for short-term listing gains and long-term growth potential. The GMP suggests 30% listing gains, and the company’s financial metrics indicate a promising future.

For those interested in exploring financial independence, investment opportunities, and learning about current affairs, platforms like Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today provide excellent resources for growing your knowledge and wealth. Additionally, staying informed through Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News can keep you updated on the latest trends in the world of finance.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.