Apex Ecotech IPO: Date, Price, Review & GMP

Apex Ecotech IPO-Complete Overview

Apex Ecotech IPO under the SME IPO category is a book-built issue of Rs.25.54 crore by Apex Ecotech Limited, incorporated in 2009. The company focuses on offering both water and wastewater treatment services, even recycling and reuse solutions where necessary.

The company’s solutions consist of the Construction of Raw Water Treatment Plants for Industrial use and effluent and sewage Treatment Plants for meeting discharge standards. Supplying Sludge Dewatering Plants, membranes (Ultrafiltration, Nanofiltration, Reverse Osmosis Disc Type RO, etc.) treated wastewater reclamation, and Thermal/Vapor Compression Ejector type Evaporation & Crystallization systems for ZLD applications. Additionally, the company also provides its clients with after-sales assistance as well as operation and maintenance.

Apex Ecotech's clients include industry leaders such as Aditya Birla Group, Ashok Leyland, Apotex Research, Bharatiyam, Escorts Kubota, Haldiram, Hero Motocorp, Honda Cars, Honda Scooters & Motorcycle, HUL, Jubilant, Kohler, Lenskart, Mahindra & Mahindra, Pepsico, Piramal Pharma, Reckitt Benckiser, Shimizu Corporation, SMCC, Takenaka and many other distinguished personalities.

This business is engaged in the successful supply of complete ZLD systems with higher than 98% overall water recovery efficiency for various reclamation operations like cooling tower and boiler feed water applications, horticulture, toilet flush tanks, air washers, process water supply, etc.

 

Apex Ecotech IPO Overview

This Apex Ecotech IPO date is 27 November 2024, and its ‘initial public offering’ will end on 29 November 2024. 

The Rs.25.54 crore new  SME IPO comprises a wholly fresh issue of 34.99 lac Shares. 

This upcoming IPO date is from November 27 to November 29, 2024. Apex Ecotech IPO Price is Rs.71 to Rs.73 for each Share. 

The expected IPO listing date is Wednesday, 04 December 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO Click Here

Company Financial

The company’s revenue grew by 53.1% and PAT increased by 88.31% during FYs ending 31 March 2024 and 31 March 2023.

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Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

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Business Segment-wise Revenue Breakdown  

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Segment-wise Revenue Breakdown  

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Geography-wise Revenue Breakdown  

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Industry-wise Revenue Breakdown  

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State-wise Revenue Breakdown 

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The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To cover public issue costs.

• Working capital requirements.

• General corporate purposes.

Peers of Apex Ecotech Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

PE is calculated by dividing CMP as of 14 November 2024.

Evaluation

The Apex Ecotech Limited IPO price is Rs.71 to Rs.73 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.7.25 from the last year, the resulting P/E ratio is 10.06x.

Considering the weighted EPS of Rs.4.79 for the last three years, the P/E ratio is 15.24x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 43.99.

 

 

In simple words, the P/E ratio of this IPO (10.06x), compared with the industry’s average P/E of 43.99x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Customization proficiency.

• A seasoned management and promotion team with a proven track record of success and deep industry knowledge.

• A model of sustainable business.

• Well-known clients.

IPO’s Weaknesses

• Marketing Specific Risks: Environmental policies and laws hinder the expansion of Apex Ecotech business operations in an adverse manner and any changes to these policies may affect their operations.

• Raw Material Cost Volatility: Changes in raw material prices and availability may pose a threat to the profit margin of the company.

• Competition: The competitiveness of this industry calls for improvement and innovations all the time to remain in the lead.

• Project Execution Risks: Cost overruns may also happen where project timelines are delayed resulting in an adverse effect on revenue recognition.

 

Apex Ecotech IPO GMP

IPO GMP today is Rs.0 as of 22 November 2024. With a price of Rs.73 per Share, the expected Apex Ecotech IPO listing price is Rs.73 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from November 27 to November 29, 2024, with allotment on December 02, refund initiation on December 03, and listing on December 04, 2024.

 

Apex Ecotech IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 34,99,200 Shares (Rs.25.54 Cr).

Apex Ecotech IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.1,16,800 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,33,600.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Apex Ecotech Ltd.

• Mr. Anuj Dosajh

• Mr. Ramakrishnan Balasundaram Aiyer

• Mr. Ajay Raina

• Mr. Lalit Mohan Datta

 

Apex Ecotech IPO Lead Managers

• Share India Capital Services Private Limited.

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

The Apex Ecotech IPO presents an investment opportunity in a fast-growing water and wastewater treatment company with decent revenues and good clientele. Its valuation also looks fair relative to the industry, although there are risks, such as competition and timely project execution. The company’s commitment to sustainability and the development of innovative solutions makes it even more attractive. It is appropriate to assess its merits and demerits.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER:

DISCLAIMER: NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing. 

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