Denta Water IPO Day 3: Second Best IPO Of Jan! Oversubscribed 221.68x; Know GMP, Allotment, Listing Details

Denta Water And Infra IPO: The Rs 220.50 crore IPO closed on Friday, January 24, becoming the second best-performing IPO of January month, after Quadrant Future Tek. Denta Water received strong demand from across investor categories, oversubscribing by a massive 221.68x. Institutional and HNI investors were top bidders. Going ahead, the IPO's basis of allotment will take place next week, while its latest grey market premium (GMP) signalled at nearly 41% premium listing on BSE and NSE.

Denta Water and Infra IPO Subscription Status:

By the end of the last day, Denta Water IPO bagged bids of 1,16,38,18,100 equity shares against its offered size of 52,50,000 equity shares, registering an oversubscription of 221.68 times. The largest bidders were non-institutional investors (NIIs) which are also known as high net-worth investors (HNIs).

NIIs category oversubscribed by 507.27x, followed by the qualified institutional buyers (QIBs) portion also oversubscribed by 236.94 times. Retail individual investors (RIIs) portion subscribed by 90.56 times.

This stellar performance has made Denta Water IPO the second-best book-building public offer on BSE and NSE in January 2025. The data of BSE showed that the best IPO is Quadrant Future Tek which got 229.35x oversubscription, followed by Denta Water and Fabtech Technologies Cleanrooms in third place which got oversubscribed by 204.30 times.

Denta Water and Infra IPO GMP Today:

As per Investor Grain, Denta Water IPO's last GMP is at Rs 120, last updated Jan 24th 2025 09:11 PM. With a price band of 294.00, Denta Water IPO's estimated listing price is Rs 414 (cap price + today's GMP). The expected percentage gain/loss per share is 40.82%.

Denta Water and Infra IPO Details:

The IPO opened on January 22 and closed for bidding on January 24. The 100% book building has a price band of Rs 279 to Rs 294 per share. The proceeds from its fresh issuance will be utilised for (i) meeting the working capital requirements of the Company, and General corporate purposes, subject to the applicable laws.

Denta Water and Infra IPO Allotment Date:

After the IPO, the basis of allotment of Denta Water is expected to take place on January 27. This is because the market will be closed on January 25th and 26th due to the weekend holiday.

Denta Water and Infra IPO Listing:

Post shares allotment, the company will initiate refunds or credit of shares in the demat account on January 28. Further, a listing of Denta Water is expected on January 29.

According to Choice Broking, DWISL is one of the key players in the field of water EPC with the majority of the projects in the state of Karnataka. It is awarded contracts through a transparent competitive bidding process undertaken by the State and Central governments and also undertakes contracts as sub-contractors from various private parties. As of November 30, 2024, the company has completed 32 projects of water management infrastructure and has 17 ongoing projects.

At the highest price band, DWISL is demanding a P/E multiple of 13.1x, based on its FY24 EPS of Rs. 22.4, this valuation seems to be at a discount compared to its peer average. The company has shown growth in both it's top and bottom line however, the margins have been impacted. As of November 30th 2024, company's order book stands at Rs. 752cr which is 3.2x to its FY24 revenue. This reflects revenue's visibility for the company in the medium term. Going forward, we believe DWISL has strong long term growth potential, supported by government initiatives in the Water Supply & Management sector and the overall positive outlook for the industry, as per Choice Broking.

Denta Water And Infra Solutions Ltd (DWISL), one of the key players in the field of water engineering, procurement, and construction ("EPC") services.