Envirotech Systems Limited, renowned for its innovative acoustic solutions, is set to launch its initial public offering (IPO) with a total issue size of ₹30.24 Crores. This offering consists entirely of a Fresh Issue of 54.00 Lakh Shares. The subscription period for the Envirotech IPO is open from September 13 to September 18, 2024, with the allotment date scheduled for September 19, 2024. The shares are expected to list on the NSE SME around September 23, 2024.

Share Price and Investment Details

The IPO price band is set between ₹53 and ₹56 per share, with a minimum lot size of 2,000 shares. Retail investors must invest at least ₹112,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹224,000 for two lots (4,000 shares).

IPO Management and Market Details

Share India Capital Services Private Limited is the book-running lead manager, and BIGSHARE SERVICES PRIVATE LIMITED is the registrar for the IPO. Share India Securities Limited is the sole Market Maker. The company has raised ₹7.87 Crores from anchor investors at ₹56 per share.

Grey Market Premium (GMP) Insights

The Grey Market Premium (GMP) for the Envirotech Systems IPO is currently estimated to be between ₹20 and ₹25. This premium is an informal indicator of potential listing gains but is subject to fluctuations based on demand and supply in the grey market. GMP figures are provided for educational purposes and should not be the sole factor in investment decisions.

Live Subscription Status

As of 3:58 PM on September 16, 2024, the IPO has been subscribed 5.88 times on its second day. For the latest updates on subscription status, visit the NSE website.

IPO Allotment Process

The allotment of shares is expected to be finalized on September 19, 2024. Investors can check their allotment status by visiting the IPO allotment status page, selecting Envirotech Systems Limited, and entering their application number, PAN, or DP Client ID.

Utilization of IPO Proceeds

The proceeds from the Fresh Issue will be utilized as follows:

₹1200.00 Lakhs for purchasing land and building for setting up a factory.

₹800.00 Lakhs for funding working capital requirements.

General corporate expenses.

Issue expenses.

Financial Performance and Valuation

Envirotech Systems has shown robust financial performance, with revenue growing from ₹1,849.54 Lakhs in FY22 to ₹2,874.78 Lakhs in FY23, and currently standing at ₹4,687.95 Lakhs in FY24. The EBITDA and PAT have also increased significantly. The pre-issue EPS is ₹8.54, and the post-issue EPS is ₹6.08, with a pre-issue P/E ratio of 6.55x and a post-issue P/E ratio of 9.21x. The company's ROCE for FY24 is 62.43% and ROE for FY24 is 58.29%, indicating that the IPO is fairly priced.

The GMP suggests potential listing gains of 40%-45%, making the IPO a promising option for investors seeking both short-term gains and long-term investment opportunities.

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