Enviro Infra Engineers made a striking entry into the Indian stock market with its shares debuting at Rs 220 on the NSE, reflecting a 48.65% premium over the issue price of Rs 148.
On the BSE, the listing price was Rs 218, a 47.29% premium. This remarkable performance established it as the largest mainline IPO debut in November 2024 and the 15th largest IPO of the year.
IPO Subscription
Enviro Infra Engineers’ IPO witnessed extraordinary investor demand. The Rs 650.43 crore public offering was oversubscribed 89 times during its subscription period from November 22 to November 26.
- Qualified Institutional Buyers (QIBs): Subscribed 157 times, reflecting robust institutional interest.
- Non-Institutional Investors (NIIs): Subscribed 153 times, showcasing significant participation from high-net-worth investors.
- Retail Investors: Oversubscribed 24.48 times, indicating strong retail enthusiasm.
The IPO’s success positions it among the most sought-after offerings of 2024.
Utilization of IPO Proceeds
The funds raised will be strategically deployed to strengthen Enviro Infra Engineers’ operational and financial foundation:
- Project Development: Financing its subsidiary, EIEL Mathura Infra Engineers Private Limited, for constructing a 60 MLD sewage treatment plant under the Mathura Sewerage Scheme in Uttar Pradesh.
- Debt Repayment: A portion of the proceeds will address outstanding borrowings to enhance financial stability.
- Growth Investments: Funds will also support acquisitions and general corporate purposes, driving the company’s long-term expansion.
About Enviro Infra Engineers
Founded in 2009, Enviro Infra Engineers is a leading provider of water and wastewater treatment solutions for government bodies in India.
- Core Services: Specializes in designing, constructing, and maintaining infrastructure projects, including sewage treatment plants and water supply systems.
- Collaborative Approach: Partners with other infrastructure firms through joint ventures for large-scale tenders, leveraging the EPC and HAM models.
- Proven Track Record: Successfully executed 28 projects, 22 of which have a capacity of 10 MLD or more, as of June 30, 2024.
Market Activity After Listing
Despite the strong debut, Enviro Infra Engineers’ shares saw mild corrections in the secondary market:
- On the NSE, the stock traded 4.29% lower at Rs 210.80 by 11:38 am IST.
- On the BSE, it was down 2.16%, trading at Rs 213.25.
The listing price exceeded GMP expectations, which had peaked at Rs 55, underlining robust investor interest despite broader market fluctuations.
Detailed IPO Structure
The IPO comprised a combination of fresh issues and an offer-for-sale (OFS):
- Fresh Issue: Rs 572.46 crore raised to support growth initiatives and project development.
- OFS: Rs 77.97 crore, with 52.68 lakh shares sold by promoters.
- Anchor Investors: High-profile participants like Quant Mutual Fund, Motilal Oswal Mutual Fund, and LIC Mutual Fund contributed Rs 195 crore.
- Employee Reservation: Offered 1,00,000 shares at a discounted price of Rs 135, reflecting the company’s commitment to its workforce.
Industry Presence
With an order book worth Rs 1,906.28 crore and 21 ongoing projects, Enviro Infra Engineers is well-positioned to capitalize on India’s growing investments in sustainable infrastructure and environmental management.
- Key Achievements: 28 completed projects, many exceeding capacities of 10 million liters per day (MLD).
- Collaborations: Works closely with state governments and urban local bodies to implement large-scale projects.
Sectoral Relevance
The company’s focus on water and wastewater management aligns with India’s increasing emphasis on environmental sustainability. Its expertise and robust order book highlight its potential to remain a dominant player in this critical sector.
Growing Investor Interest
Enviro Infra Engineers’ strong IPO debut reflects rising interest in sustainable infrastructure investments.
Its strategic focus on urban and environmental development projects underscores its appeal as a key player in India’s infrastructure growth story.
Disclaimer – The information provided in this article is for informational purposes only and should not be considered as financial, investment, or legal advice. MarketScope Daily does not endorse or recommend any specific stock or financial product mentioned herein. Readers are advised to conduct their own research and consult with a certified financial advisor before making any investment decisions. Market performance is subject to risks, and past performance does not guarantee future results.
