Upcoming IPO: Enviro Infra Engineers To Open For Subscription On November 22; All You Need To Know

The Enviro Infra Engineers Limited IPO is set to open for subscription on Friday, November 22, and will close on Tuesday, November 26. The price band has been fixed between Rs 140 to Rs 148 per equity share, with the floor price set at 14 times the face value and the cap price at 14.80 times the face value.

This IPO marks a significant milestone for the company, a leader in designing and maintaining water and wastewater treatment facilities for government entities. With a solid operational track record and focus on infrastructure critical for sustainable urban development, Enviro Infra Engineers has positioned itself as a promising player in the Indian infrastructure space.

IPO Details and Lot Size

The Enviro Infra Engineers IPO comprises a fresh issue of 3.87 crore equity shares and an offer-for-sale (OFS) of 52.68 lakh equity shares by the promoters. The lot size has been fixed at 101 equity shares, and bids can be made in multiples of 101 shares thereafter.

The company has reserved not more than 50% of the issue for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and at least 35% for retail investors. Additionally, up to 1,00,000 equity shares have been reserved for employees, who are eligible for a Rs 13 per share discount.

Key dates for the IPO are as follows:

Anchor investor allocation: November 21
Basis of allotment finalization: November 27
Refund initiation: November 27
Credit to demat accounts: November 28
Listing on BSE and NSE: November 29

Financial Performance

Enviro Infra Engineers has shown a strong financial trajectory, with a 116% revenue growth and a 101% surge in profit after tax (PAT) for the financial year ending March 31, 2024, compared to the previous fiscal year.

At the upper end of the price band, the company's P/E ratio stands at 18.20 times, which is significantly lower than the average P/E ratio of 33.45 times for its industry peers. This suggests a relatively attractive valuation for investors.

Listed peers include:

EMS Ltd (P/E: 25.92)
ION Exchange Ltd (P/E: 38.68)
Va Tech Wabag Ltd (P/E: 43.90)
Vishnu Prakash R Punglia Ltd (P/E: 25.31)

About Enviro Infra Engineers

Founded in 2009, Enviro Infra Engineers specializes in water and wastewater treatment projects (WWTPs) and water supply initiatives (WSSPs) for government clients. The company operates through tender-based contracts, offering services under the Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) frameworks.

Over the past seven years, the company has completed 28 projects across India, including 22 projects with capacities of 10 MLD and above. Projects include Sewage Treatment Plants (STPs), Sewerage Schemes (SS), and Common Effluent Treatment Plants (CETPs).

Use of IPO Proceeds

Enviro Infra Engineers plans to utilize the IPO proceeds for:
Working capital requirements
Supporting its subsidiary, EIEL Mathura, in constructing a 60 MLD STP under the Mathura Sewerage Scheme in Uttar Pradesh through the Hybrid Annuity PPP model
Partial repayment of existing borrowings
Funding growth initiatives, acquisitions, and general corporate purposes

IPO Outlook

With India's increasing focus on sustainable urban infrastructure, companies like Enviro Infra Engineers are poised for growth. The firm's consistent project execution, robust financials, and expansion into large-scale government initiatives strengthen its market position.