Denta Water IPO: GMP, Date, Price & All Details

Denta Water IPO - Complete Overview 

Denta Water IPO a Mainboard IPO is a book-built issue of Rs.220.50 Cr (0.75 Cr Shares) by Denta Water and Infra Solutions Limited incorporated in 2016. It is enthusiastic about its consistent growth in infrastructure and water solutions projects. It is involved in the construction, deceptive planning, and commissioning of water management infrastructure projects, mainly the waterproofing of the recharging of groundwaters.

The company has implemented significant projects at Hiremagaluru LIS, KC Valley, and Byrapura which have contributed to the Bengaluru municipality's wastewater management support through the Government's Jal Jeevan Mission.

It has about 98 acres of land in Madikeri, Karnataka, wherein the company produces coffee, peppers, and cardamom, as well as a beach resort located in Udupi, which involves selling space through revenue under its facility management agreement.

Services offered include a wide range of water management services:

• Preliminary investigation and reconnaissance.

• Feasibility studies.

• Planning and project formulation.

• Field surveys and soil testing.

• Design services.

• Tender bidding consultancy.

• Project management and construction supervision.

• Operation and maintenance guidelines.

• Engineering procurement consultancy.

• Turnkey projects.

 This new IPO is to be launched on 22 January 2025, and the initial public offering of this upcoming IPO will end on 24 January 2025.

Detailed Video

Denta Water and Infra Solutions Limited IPO Details

This Rs.220.50 Crore Denta Water and Infra Solutions IPO comprises a wholly fresh issue of 0.75 Cr Shares (Rs.220.50 Cr). 

The IPO listing date is on January 29, 2025. Denta Water IPO price is Rs.279 to Rs.294. 

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

Company Financial

(Amount in Million)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Segment-wise Revenue Breakdown

(Amount in millions)

(Source RHP)

 

The Objective of the Issue

• Financing the company's increased working capital needs.

• General Corporate Purposes.

 

Peers of Denta Water Limited

 

Evaluation

The Denta Water and Infra Solutions Limited IPO price is between Rs.279 to Rs.294 per Share.


Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.31.11 from the last year, the resulting P/E ratio is 9.45x. 

Considering the weighted EPS of Rs.27.58 for the last three years, the P/E ratio is 10.66x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 32.94x.

In simple words, the P/E ratio of this IPO (9.45x), compared with the industry’s average P/E of 32.94x, 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   

• Familiarity and experience in groundwater recharge projects.

• In-house engineering and design skills that are appropriate for water management infrastructure projects.

• Very strong management team.

• Good order book.

• Well-timed execution.

 

IPO’s Weaknesses 

• Delays in Project Completion: The company is witnessing slippages in 10 out of 17 ongoing projects, which could lead to increased costs, penalties, as well as negative effects on cash flow and reputation.

• Dependence on Government Clients: A significant share of revenue is earned from government contracts, with 83.98% of revenue for the six months ending September 2024 being derived from the Government of Karnataka. Any adverse changes in these contracts or policies could pose a large negative impact on the Company.

• Risk in Lawsuits And Legal Hurdles: The legal issues of the promoters, including charges of malfeasance, once opened, are always threatening the company with risks and extending their investigation, while putting the company's reputation and functioning at stake.

• Reliance on External Contractors: Dependence on third-party contractors for project execution is fraught with risks concerning delays in work completion, quality issues, and financial instability of contractors that may affect the timeliness and financial stability of projects. 

 

Denta Water IPO GMP

Denta Water IPO GMP today has not started yet as of 17 January 2025. 

Denta Water and Infra Solutions IPO Timetable (Tentative)

The Denta Water and Infra Solutions IPO date is from 22 January to 24 January, with IPO allotment on 27 January, and refund initiation on Jan 28, 2025. The IPO listing date is on Jan 29, 2025.

 

IPO Other Details 

The Denta Water and Infra IPO with a face value of Rs.10 per Share, offers an IPO size of 75,00,000 Shares (Rs.220.50 Cr) and it will be listed at BSE and NSE.

 

Denta IPO Lot Size

The Denta IPO allows retail investors to invest in a minimum and maximum of 1 Lot (50 Shares) amounting to Rs.14700 and 13 Lots (650 Shares) amounting to Rs.1,91,100 respectively, while for HNI investors, the minimum Lot is 14 (700 Shares) amounting to Rs.2,05,800.

IPO Reservation

Promoters and Management of Denta Water Ltd. 

• Sowbhagyamma

• Sujith TR

• C Mruthyunjaya Swamy

• Hema HM.
  
  

IPO Lead Managers

• SMC Capitals Limited.
  
  

Dividend Policy

The company has not paid a dividend in the last three FYs.

 

Conclusion

The investing opportunity here is in Denta Water IPO, which has significant expertise in Water Management and Infrastructure Projects. The IPO appears very reasonably priced against peers; however, possible risks include project delays and dependence on government contracts. Investors should study financials with growth potential before applying.  

 

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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: 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. 

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