Enviro Infra Engineers Limited IPO: Share Price, Date & GMP.

Enviro Infra Engineers Limited IPO-Complete Overview

Enviro Infra Engineers Limited IPO a Mainboard IPO is a book-built issue of Rs.650.43 crore (43,948,000 Shares) by Enviro Infra Engineers Limited that was founded in 2009 and works with government organizations and entities to design, build, operate, and maintain water and wastewater treatment plants (WWTPs) and water supply projects (WSSPs). While WSSPs include water treatment plants (WTPs), pumping stations, and the installation of water supply pipelines, WWTPs include sewage treatment plants (STPs), sewerage schemes (SS), and common effluent treatment plants (CETPs).

To build WWTPs and WSSPs on an EPC or HAM basis, the company participates in State Government tenders and ULBs. During the last seven years, the company has successfully developed 28 WWTPs and WSSPs in India till June 30, 2024, with capacities of 10 MLD or more on 22 projects.

This new IPO is to be launched on 22 November 2024, and the initial public offering of this upcoming IPO will end on 26 November 2024.

Enviro Infra Engineers Limited IPO Details

The Rs.650.43 crore Enviro Infra Engineers Limited IPO comprises a combination of a fresh Issue of 3.87 crore Shares (Rs.572.46 crores) and offers for Sale (OFS) of 0.53 crore Shares (Rs.77.97 crores). The IPO listing date is on November 29, 2024. Enviro Infra Engineers Limited IPO Share price is Rs.140 to Rs.148.

Enviro Infra Engineers Ltd Turnover

In FY2022 it crossed a turnover of Rs.20,000 lac.

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Company Financial

The company’s revenue grew by 116% and PAT increased by 101% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Project-wise Revenue Bifurcation

(Values in lac)

 

The Objective of the Issue

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

• To fulfill the requirements for working capital.

• Infusion of funds in our Subsidiary, EIEL Mathura Infra Engineers Private Limited (EIEL Mathura) to build 60 MLD STP under the project dubbed ‘Mathura Sewerage Scheme’ at Mathura in Uttar Pradesh through Hybrid Annuity Based PPP Mode.

• Complete or partial redemption or prepayment of certain of our outstanding debts.

• Using unknown purchases to finance inorganic growth.

• General Corporate Purposes.
  
  

Peers of Enviro Infra Engineers Limited

 

 

Evaluation

The IPO price is between Rs.140 to Rs.148 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.8.13 from the last year, the resulting P/E ratio is 18.20x. 

Considering the weighted EPS of Rs.5.95 for the last three years, the P/E ratio is 24.87x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 33.45x.

 

In simple words, the P/E ratio of this IPO (18.20x), compared with the industry’s average P/E of 33.45x, 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 

• 180 engineers constitute the core, in-house designing, engineering, and executing team.

• New projects are gaining the required momentum in a host of areas in Gujarat, Rajasthan, Punjab, Karnataka, Haryana, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh.

• By June 30, 2024, 21 projects were in the Diversified Order Book of Rs.1,90,628.06 lakhs in India.

• Consistent extension of eligibility for high-value project tenders due to in-house execution skills, timely delivery, and a proven track record.

• Knowledgeable promoters and senior management team.

• Consistent financial success. Use of cutting-edge technologies in the development and installation of WWTPs and WSSPs.

 

IPO’s Weaknesses

• Government Contracts: Enviro Infra Engineers gets the majority of its revenues from government contracts and hence is susceptible to changed government policies or budgetary allocations.

• The industry for water and wastewater management is one of the most competitive areas. Hence, continuously improving technology with cost optimization is indispensable to remain ahead of the competition.

• Sector-Specific Risks: The company falls within a niche sector; changes in regulations or environmental issues may affect the profitability of the project during execution.

 

Enviro Infra IPO GMP

Enviro Infra Engineers IPO GMP today is NA as of 18 November 2024.

Enviro Infra Engineers Limited IPO Timetable (Tentative)

The IPO date is from 22 November to 26 November, with IPO allotment on 27 November, and refund initiation on 27 November. The IPO listing date is on 29 November 2024.

 

Enviro Infra Engineers Limited IPO Other Details

Enviro IPO with a face value of Rs.10 per Share offers a total issue size of 43,948,000 Shares (Rs.650.43 Cr) and it will be listed at BSE and NSE.

Enviro Infra Engineers IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (101 Shares) amounting to Rs.14,948 and 13 Lots (1313 Shares) amounting to Rs.1,94,324 respectively, while for HNI investors, the minimum Lot is 14 (1414 Shares) amounting to Rs.2,09,272.

IPO Reservation

Promoters and Management of Enviro Infra Engineers Limited. 

• Sanjay Jain

• Manish Jain

• Ritu Jain

• Shachi Jain
  
  

IPO Lead Managers

• Hem Securities Limited.
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscals.

 

Conclusion

Enviro Infra Engineers Limited, with its strong financial growth, proven track, and competitive price compared to industry peers, appears to be a great investment opportunity for an investor. The company is involved in water and wastewater projects and is supported by experienced management and innovative technology. However, its complete dependence on government contracts and sector-specific risks calls for caution on this count. Overall, it does appear promising for investors looking forward to getting initiated with infrastructure and water management segments.

 

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. 

The company’s data is taken from the Company’s RHP (Red Herring Prospectus) dated 16 November 2024.

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