Enviro Infra Engineers IPO

About Enviro Infra Engineers IPO

Enviro Infra Engineers IPO is an IPO of ₹650.43 crores. It consists of a fresh issue of 386,8000 equity shares. The IPO will open on Nov 22,2024 and close on Nov 26,2024. Anchor bidding will take place on Nov 21, 2024 and shares will be credited on Nov 27, 2024. The initiation of refunds will take place on Nov 27, 2024.

About company:

Enviro Infra Engineers desings, 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 supply of water (collectively, “Projects”).

The treatment process installed at most of the STPs and CETPs is Zero Liquid Discharge (ZLD) compliant and the treated water can be used for horticulture, washing, refrigeration and other process industries.

Anchor investors:

The anchor investors’ bid opens on Nov 21, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.

Book running lead managers:
The Book running lead manager is Hem Securities Limited.

Enviro Infra Engineers IPO Key Points

Objectives of the IPO:

• Meet working capital requirements
• Infuse funds in their Subsidiary, EIEL Mathura Infra Engineers Private Limited (“EIEL Mathura”) to build 60 MLD STP under project titled ‘Mathura Sewerage Scheme” at Mathura in Uttar Pradesh including Operation & maintenance for 15 years through Hybrid Annuity Based PPP Mode.
• Repay/prepay in full or in part, of certain of our outstanding borrowings;
• Fund future projects and general corporate purposes

Potential Benefits for Investors:

Enviro Infra Engineers’ revenue rose by 116%, while the profit after tax (PAT) had a 101% rise for the financial year ending March 31, 2024 compared to March 31, 2023. By investing in Enviro Infra Engineer’s IPO, investors get to be a part of a company that is growing exponentially.

Enviro Infra Engineers’ is a part of an industry that is emerging as an important aspect of environment preservation. From the New Urban Agenda to the Paris Agreement on climate change, and from the Sendai Framework for Disaster Risk Reduction to the Kunming-Montreal Global Biodiversity Framework, water management has become a critical element with multifaceted benefits. Hence, by investing in Enviro Infra Engineers IPO, the investor gets to a part of an industry that is being given increasing importance.

Enviro Infra Engineers IPO Risk Factors

• The company bids for water and wastewater Treatment Plants (WWTPs) & Water Supply Scheme Projects (WSSPs)funded by the Central and State Governments and derive their revenues from the contracts awarded to them. Any reduction in budgetary allocation to this sector may affect the number of projects that the government authorities/bodies may plan to develop in a particular period. The company’s business is directly and significantly dependent on projects awarded by them.

• The company relies on various third parties in the civil construction activities for installing our Water and Wastewater Treatment Plants (WWTPs) & Water Supply Scheme Projects (WSSPs)and factors affecting the performance of their obligations could adversely affect their projects.

• Increase in the prices of construction materials and labour & works contract charges could hurt the business.

Key Strategies of Enviro Infra Engineers

• Increase the size of projects and our pre-qualification.
• Expand geographical footprint.
• Plan to further bid for HAM projects.