Enviro Infra Engineers has made a great debut in the stock market. It has been listed on the National Stock Exchange (NSE) at Rs 220/share with a 48.7% premium, while it has been listed on the BSE at Rs 218/share with a 47.3% premium. The issue price of the IPO on the upper band was Rs 148.
How much was the IPO subscribed?
The issue closed on November 26. It was subscribed 89.9 times. The IPO included a fresh issue of shares worth Rs 572.46 crore and an offer for sale of Rs 77.96 crore. The company had raised Rs 195 crore from anchor investors a day before the IPO opened.
Where will the money raised from the IPO be used?
Out of the proceeds from the IPO, Rs 181 crore will be used to meet working capital requirements. Rs 120 crore will be used to repay the loan.
The company will invest Rs 30 crore in its subsidiary EIEL Mathura Infra Engineers Pvt to build a 60 MLD sewage treatment plant in Mathura, Uttar Pradesh.
In addition, a portion will be used to fund inorganic growth through acquisitions and general corporate purposes.
Enviro Infra Engineers Business Detail
Enviro Infra Engineers is engaged in designing, constructing, operating and maintaining water and waste water treatment plants and water supply scheme projects for government authorities and bodies.
The company has completed 26 waste water treatment plants and water and sanitation sector projects across the country in the last seven years, including 20 projects with capacity of 10 MLD and above by December 31, 2023.
Financial performance of the company
According to new financial records shared in pre-IPO documents, Enviro Infra Engineers’ total income stood at Rs 4,285 crore for the nine-month period ended December 31, 2023. In FY23, income stood at Rs 3,381 crore, up from Rs 2,235 crore a year ago.
The company’s profit increased from Rs 345 crore in FY 2022 to Rs 550 crore in FY 2023, however, it reported a loss of Rs 86 crore in FY 2021.
