Effwa Infra & Research Ltd IPO: Review, Valuation, Date & GMP

Effwa Infra & Research Limited IPO - Complete Overview

In the field of water pollution control, Effwa Infra & Research Limited was established in 2014 and offers engineering, consulting, procurement, construction, and integrated project management services. These services encompass solid waste disposal and treatment, aeration systems, handling of hazardous waste, wastewater and industrial effluent treatment, and water treatment plants.

The business also provides consulting and expert services for organizing projects, management, procurement, finance, and implementation. Assuring ecologically safe waste processing procedures is the main goal. This includes managing hazardous waste management, sewage treatment and remediation, water treatment and distribution, and effluent treatment plants (ETP).

The infrastructure for the water management project consists of pipeline construction, electromechanical works, project design, construction, raw material procurement, well installation, including pump houses, and execution on location with general project management up until the projects' commissioning.

The company provides its services not just in the Adani Ports Special Economic Zone but also in the states of Andhra Pradesh, Chhattisgarh, Gujarat, Maharashtra, Odisha, West Bengal, Madhya Pradesh, and Rajasthan.

By March 31, 2024, the business had effectively finished more than 45 water management infrastructure projects for government agencies, local governments, states, and private businesses.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 5, 2024.

Let's take a closer look at the IPO's offerings below.

Effwa Infra & Research Limited IPO Overview

Effwa Infra & Research Limited IPO is an SME book-built issue of Rs.51.27 crore with a Fresh Issue of 53.17 lac Shares (amounting to Rs.43.60 crore) and an offer for sale of 9.36 lac Shares (amounting to Rs.7.68 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on July 05, 2024, and conclude on July 09, 2024. The anticipated listing date for the IPO is Friday, July 12, 2024, and it will be held on the NSE and SME. The price band of the share is Rs.78 to Rs.82.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

Effwa Infra & Research Limited's revenue climbed by 26.08%, while profit after tax (PAT) increased by 169% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2023.

• The company’s total revenue is Rs.100-500 crore.

• The net worth of the company has climbed by 27.96%.

• The company's EBITDA is increased by 29.49 %.

• The total assets of the company rose by 40.86%

• The Liabilities of the company climbed by 46.00%.

(Amount in Lacs)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	8,302.83	6,478.54	4,648.21
Total Revenue	14,551.46	11,541.36	10,461.67
PAT	1,380.06	513.04	459.99
Net worth	3,715.05	2,355.89	1,842.85
Reserve & Surplus	1,932.01	2,123.32	1,610.28
Total Borrowings	1,406.44	1,623.01	1,026.11

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lacs)

Net Cash flow in multiple Activities	Dec 31, 2023	Mar 31, 2023	Mar 31, 2022
Net Cash Flow Operating Activities	1,293.26	466.97	386.30
Net Cash Flow Investing Activities	255.04	240.10	140.71
Net Cash Flow Financing Activities	910.03	400.42	55.38

 

 

Sector-Wise Break-down of Revenue from the Sales:

(Amount in Lacs)

Sector	Sales Distribution
	Dec 31, 2023	Mar 31, 2023	Mar 31, 2022
Government Institutions	326.79	1,067.99	-
PSUs	3,770.54	6,563.23	9,590.31
Private	4,912.69	3,878.35	846.37
Total	9,010.02	11,509.57	10,436.67

 

The Objective of the Issue

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

• Financing the company's needs for operating capital

• Financing its capital expenditure requirements for the acquisition of new office equipment.

• General corporate reasons.
  
  

 

Peers of Effwa Infra & Research Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Va Tech Wabag Ltd.	2	37.73	33.95
Ems Limited	10	28.91	22.24

 

 

Evaluation

The price of this IPO is Rs.78 to Rs.82 for each share.

Evaluation of P/E Ratio

Considering the FY23 (concluded on 31 March 2024), EPS of Rs.7.74 from the last year, the resulting P/E ratio is 10.59x.

Considering the weighted EPS of Rs.5.96 for the last three years, the P/E ratio amounts to 13.75x.

Comparative Analysis with Listed Peers

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

IPO's Strengths

• A proven track record of prompt completion.

• Internal proficiency in the engineering and design of water-related infrastructure initiatives

• Our outsourcing methodology results in lower investments and capital expenditures for our projects.

• Seasoned manager group and promoter.

• Acceptance of Brands for Services and Equipment.
  
  

 

IPO’s Weaknesses

• We are currently facing several legal actions that could hurt our operations, reputation, and business.

• As part of our business, we must provide bank guarantees. Our cash flows and financial situation can be negatively impacted by our incapacity to establish such guarantees or by the invocation of such guarantees.

• The bulk of our income came from a small group of customers, so losing one or more of them may have a significant negative impact on our operations, financial situation, and business.

• It's possible that our current order book won't fully translate into future revenue. Some of our open orders could be changed, canceled, postponed, or not paid for in whole by our consumers, which can harm our company's operations, finances, business, and prospects.
  
  

 

IPO GMP Today

Effwa Infra & Research Limited IPO’s latest GMP is Rs.63.

 

 

Effwa Infra & Research Limited IPO timetable (Tentative)

The IPO is scheduled from July 5 to July 9, 2024, with allotment on July 10, refund initiation on July 11, and listing on July 12, 2024.

Events	Date
IPO Opening Date	July 5, 2024
IPO Closing Date	July 9, 2024
IPO Allotment Date	July 10, 2024
Refund initiation	July 11, 2024
IPO Listing Date	July 12, 2024

 

Effwa Infra & Research Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on July 5, close on 9 July, and offer a total issue size of 6,252,800 Shares (amounting up to Rs.51.27 crore) comprising a fresh issue size of 5,316,800 Shares (amounting up to Rs.43.60 crore) and offer for sale of 936,000 Shares (amounting up to Rs.7.68 crore).

IPO Opening & Closing Date	July 5, 2024 to July 9, 2024
Face Value	Rs.10 per Share
Issue Size	6,252,800 Shares of Rs.51.27 crore
Offer for Sale	936,000 Shares of Rs.7.68 crore
Fresh Issue	5,316,800 Shares of Rs.43.60 crore
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Effwa Infra & Research Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (1600 Shares) amounting to Rs.131200, while for HNI investors, the minimum lot is 2 (3200 Shares) amounting to Rs.262400.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
HNI (Min)	2 lots

 

Effwa Infra & Research Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

 

Promoters and Management of Effwa Infra & Research Limited IPO

• Dr. Varsha Subhash Kamal

• Mr. Subhash Ramavtar Kamal

Pre-issue Promoter shareholding	99.99%
Post-issue Promoter shareholding	72.99%

 

Effwa Infra & Research Limited IPO Lead Managers

• Shreni Shares Limited

 

Dividend Policy

The company has not declared or paid dividends in the six months ending December 31, 2023, and the last three financial years.

. 

Conclusion

The company’s net worth, total assets, and liabilities have increased and EBITDA also rose in the last few financial years. To fulfill its objectives, the company is currently conducting an initial public offering (IPO) for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

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.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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