Concord Enviro IPO: Date, Price, GMP & Details

Concord Enviro IPO - Complete Overview 

Concord Enviro IPO a Mainboard IPO is a book-built issue of 71,37,321 Shares (Rs.500.33 Cr) by Concord Enviro Systems Limited that was founded in July 1999. It is a global provider of water and wastewater treatment and reuse solutions including zero-liquid discharge (ZLD) technology. 

With this, the company renders in-house solutions along the line of the entire value chain for design, manufacture, installation, operation, and maintenance (O&M) and digitalization, including IoT. The company provides comprehensive integrated wastewater treatment and zero liquid discharge (ZLD) systems, with main focus areas defined on energy optimization and recovery to help the industries to meet water conservation and sustainability goals.

The company's business can be classified into the following:- Manufacturing and Sales of Water and Waste Water Treatment, Reuse and ZLD of Systems and Plants- Turnkey Solutions; Operations and Maintenance; Manufacturing and sales of Consumables and Spare parts: Including membranes, plants, chemicals and consumables; Installation of Compressed biogas plants.

As of 31st March 2024, this company has an international footprint in North America, Latin America, Africa, the Middle East, and Southeast Asia. It has a huge customer base of 377 customers, scattered worldwide.

Since FY 2024, the company has been catering to over 353 domestic customers and 24 international customers across pharmaceuticals, chemicals, food and beverage, defence, automotive, steel, and textiles, with a presence in two countries. 

Some of its customers include Diageo Mexico Operaciones, Tagros Chemicals India Private Limited, Grasim Industries Limited, Anthem Biosciences Private Limited, Bhopal Glues and Chemicals Private Limited, S.A. De C.V., Kasyap Sweeteners Private Limited, AB Mauri, LANXESS India Private Limited, SFC Environmental Technologies Private Limited, Puja Spintex Private Limited, and SMS Limited. Furthermore, in addition to establishing a ZLD solution for their distillery in La Barca, Jalisco, Mexico, the company presently works on projects for global corporations such as Diageo Mexico Operaciones, S.A. De C.V. The company also implemented a ZLD solution for another customer at their plant in New York, USA.

The business operates two production sites: one in Sharjah, United Arab Emirates, and another in Vasai, India. 

This new IPO is to be launched on 19 December 2024, and the initial public offering of this upcoming IPO will end on 23 December 2024.

 

Concord Enviro IPO Details

The Rs.500.33 crore Concord IPO comprises a combination of a fresh issue of 0.25 Cr Shares (Rs.175 Cr) and an offer for sale (OFS) of 0.46 Cr Shares (Rs.325.33 Cr). The IPO listing date is on December 27, 2024. Concord Enviro IPO price is Rs.665 to Rs.701. 

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

The company’s revenue grew by 46% and PAT increased by 655% between FYs ended 31 Mar 2024 - 31 Mar 2023.

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Cash Flows

The cash flows for various activities are shown below:

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Country-wise Revenue Bifurcation

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Country-wise Revenue Bifurcation for FY24

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Country-wise Revenue Bifurcation for FY23

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Geography-wise Revenue Bifurcation

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Industry-wise Revenue Bifurcation

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 (Source RHP)

The Objective of the Issue

• The capital expenditure requirement of the wholly owned Subsidiary, Concord Enviro FZE, is invested for financing a greenfield project to develop an assembly unit for assembling systems and plants for the treatment of water, wastewater, and related membrane modules (the "U.A.E Project")

• Investment in Rochem Separation Systems (India) Private Limited ("RSSPL"), a fully owned subsidiary, to fund its capital expenditure requirements for growing its production, storage, and additional facilities as part of the brownfield project (the "Vasai Project")

• Funding for plant and machinery acquisition is required for the capital expenditure of the Company.

• Investment in Concord Enviro FZE, a wholly owned subsidiary, to pay off all or a portion of the outstanding debts that Concord Enviro FZE has taken out.

• Investment in wholly owned Subsidiary, Concord Enviro FZE, for funding working capital requirements of Concord Enviro FZE.

• Investment in the joint venture Reserve Enviro Private Limited to scale up pay-for-use/pay-as-you-treat business.

• Investment towards technology and other growth initiatives for entering into new markets.

• General Corporate Purposes.

 

Peers of Concord Enviro Limited

 

Evaluation

The Concord Enviro Limited IPO price band is between Rs.665 to Rs.701 for each Share.


Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.22.77 from the last year, the resulting P/E ratio is 30.78x. 

Considering the weighted EPS of Rs.13.90 for the last three years, the P/E ratio is 50.43x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 49.82x.

In simple words, the P/E ratio of this IPO (30.78x), compared with the industry’s average P/E of 49.82x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths    

• India leads the ZLD technology market and is ideally positioned to take advantage of opportunities in the worldwide sector.

• Backward integrated manufacturing facilities support the integrated solutions supplier.

• A well-established presence in global marketplaces.

• Broad consumer base spanning several sectors and regions.

 

IPO’s Weaknesses 

• Economic Sensitivity: Prospective impacts of industrial slowdowns on wastewater solution demand.

• Regulatory Risks: The complexity involved in compliance is intensifying due to operations across geographies.

• Rivaling Forces: Wastewater treatment is fast emerging as a sector of competition where new entrants are battling for audience share.

 

Concord Enviro IPO GMP

Concord Enviro IPO GMP today is Rs.0 as of 17 December 2024. With the price band of Rs.701, the estimated Concord Enviro IPO listing price is Rs.701 while writing this information.

Concord IPO Timetable (Tentative)

The IPO date is from 19 December to 23 December, with IPO allotment on 24 December, and refund initiation on 26 December. The IPO listing date is on 27 December 2024.

 

IPO Other Details 

With a face value of Rs.5 per Share, the IPO size is 71,37,321 Shares (Rs.500.33 Cr) and it will be listed at BSE and NSE.

Concord Enviro IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (21 Shares) amounting to Rs.14721 and 13 Lots (273 Shares) amounting to Rs.1,91,373 respectively, while for HNI investors, the minimum Lot is 14 (294 Shares) amounting to Rs.2,06,094.

IPO Reservation

Promoters and Management of Concord Enviro Ltd. 

•  Prayas Goel

• Prerak Goel.
  
  

IPO Lead Managers

• Motilal Oswal Investment Advisors Limited

• Equirus Capital Private Limited.
  
  

Dividend Policy

The company has not declared dividends until the date of the RHP.

Conclusion

The Concord Enviro IPO offers investors a chance to invest in a leading water and wastewater treatment solutions provider with global reach and strong financial growth. The IPO displays a fair valuation. With ambitions for expansion, integrated solutions, and a solid customer base, the business seems well-positioned for future success. Before applying, investors should thoroughly consider its risks and strengths.

 

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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.

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