Enviro Infra Engineers Ltd IPO - Check Key Details Including Offer Date, Issue Size and More
Enviro Infra Engineers Ltd has filed papers with capital market regulator SEBI for its initial public offering (IPO), which consists of a fresh issue and an offer for sale. If you are looking forward to investing in this IPO, this blog can be your handy guide to decoding several aspects.
About Enviro Infra Engineers Ltd
Enviro Infra Engineers Ltd designs, constructs, operates and maintains Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities/bodies. WWTPs include Sewage Treatment Plants (STPs), Sewerage Schemes (SS) and Common Effluent Treatment Plants (CETPs), while WSSPs include Water Treatment Plants (WTPs) along with pumping stations and laying of pipelines for the supply of water.
As of December 31, 2023, the company had successfully developed 26 WWTPs and WSSPs across India in the past seven years, including 20 projects with 10 MLD capacity and above.
Enviro Infra Engineers Ltd IPO details
Here are the key details of this Enviro Infra Engineers Ltd IPO:
| Particulars | IPO Details |
|---|---|
IPO opens on | To be announced |
IPO closes on | To be announced |
Fresh issue | Up to 4,42,32,000 equity shares |
Offer for sale | Up to 52,68,000 equity shares |
Face value | ₹10 |
Lot size | To be announced |
Minimum investment | To be announced |
Total IPO size | To be announced |
Book running lead managers | Hem Securities Ltd Bigshare Services Pvt Ltd |
Use of IPO proceeds
The company plans to utilise the net proceeds for:
- Meeting working capital requirements
- Infusion of funds in its subsidiary, EIEL Mathura Infra Engineers Private Limited, to build 60 MLD STP under the project titled ‘Mathura Sewerage Scheme” at Mathura in Uttar Pradesh
- Repaying/prepaying in full or in part of certain of its outstanding borrowings
- Funding for future projects and general corporate purposes
Financial overview
The table captures the key financials of the company:
| Particulars | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Total equity and liabilities (in ₹ crores) | 347.5849 | 148.2667 | 112.1331 |
Total income (in ₹ crores) | 341.6624 | 225.6235 | 126.1736 |
Diluted EPS (in ₹) | 4.29 | 2.70 | 0.67 |
Return on net worth | 43.46% | 48.24% | 23.24% |
Profit after tax (in ₹ crores) | 54.9781 | 34.5503 | 8.6140 |
Company’s competitive strengths
Given below are the company’s competitive strengths:
- In-house designing, engineering and execution team
- Increasing presence in existing geographies with new projects
- Diversified order book of projects across India
- In-house execution capabilities with timely delivery and an established track record enabling a consistent increase in eligibility for high-value project tenders
- Use of advanced technologies in the construction and installation of WWTPs or WSSPs
- Experienced promoters and senior management team
- Consistent financial performance
Business strategies
Going forward, Enviro Infra Engineers Ltd aims to implement the following business strategies:
- Increase the size of projects and its pre-qualification
- Expand its geographical footprint
- Plan to further bid for HAM projects
- Launch new initiatives along the “Waste to Energy” theme as a part of its project
- Capitalise on government policy initiatives in WWTP and WSSP sectors
Industry overview : The road ahead for the water treatment industry
The global water and wastewater treatment market is expected to grow at a CAGR of 6.10% in terms of value to reach USD 521.97 billion in 2033 from USD 306.332 billion in 2024. The global water and wastewater treatment market is experiencing a significant surge in demand, driven by several key factors that underscore the critical importance of efficient and sustainable water management practices.
One of the primary drivers behind this uptick in demand is the escalating need for clean and potable water due to population growth, urbanisation, and industrialisation. As the world's population continues to expand, particularly in urban areas, the strain on existing water resources intensifies, necessitating robust treatment solutions to ensure the availability of safe drinking water and to mitigate environmental pollution.
In conclusion
Enviro Infra is definitely creating a buzz in a new age and in-demand industry. However, many factors will determine how far and in what direction the company will go.
Before investing in any IPO, it is vital to do your homework. Factor in your financial goals and risk tolerance before investing. The draft red herring prospectus provides a complete overview of the company and the IPO.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.
