The initial public offering (IPO) of Enviro Infra Engineers Limited is generating considerable buzz as it continues to attract investor interest. As of November 25, 2024, the grey market premium (GMP) for Enviro Infra Engineers shares has increased to ₹53, reflecting strong demand.
Enviro Infra Engineers IPO Overview
The IPO of Enviro Infra Engineers opened for subscription on November 22 and will remain available until November 26, 2024. The public offering has garnered a positive response from investors, with the subscription status indicating a total subscription of 2.08 times after the first day of bidding.
Current Grey Market Premium (GMP)
The GMP for Enviro Infra Engineers shares currently stands at ₹53, which marks a significant increase from the previous GMP of ₹31. This rise in GMP indicates heightened investor sentiment and optimism surrounding the IPO, attributed to a favorable trend reversal in the Indian stock market.
Subscription Status
As of the end of day one, the subscription details are as follows:
- Overall Subscription: 2.08 times
- Retail Portion: Subscribed 1.70 times
- Non-Institutional Investors (NII): Subscribed 2.98 times
- Qualified Institutional Buyers (QIB): Subscribed 2.04 times
This robust participation across various investor segments highlights strong demand for the IPO.
Company Financials
Enviro Infra Engineers has demonstrated impressive financial growth. The company reported a compound annual growth rate (CAGR) of:
- Revenue: 115.6%
- EBITDA: 107.3%
- Profit After Tax (PAT): 101.1%
At an upper price band of ₹148, the IPO is valued at an FY24 EV/EBITDA ratio of 16.7x, which is competitive compared to its peers in the industry.
Important Dates
- IPO Open Date: November 22, 2024
- IPO Close Date: November 26, 2024
- Allotment Date: November 27, 2024
- Listing Date: November 29, 2024
Should You Apply?
Given the strong subscription numbers and positive market sentiment reflected in the rising GMP, many analysts recommend applying for shares in the Enviro Infra Engineers IPO. The company’s solid financial performance and growth potential make it an attractive option for long-term investors.
Expert Opinions
Market analysts have generally assigned a “subscribe” rating to the Enviro Infra Engineers IPO:
- Indsec Securities states that despite higher valuation compared to peers, the company’s robust project pipeline and consistent financial performance justify a “Subscribe for Long Term” rating.
- Anand Rathi Research also recommends subscribing to the issue for long-term gains, highlighting that Enviro’s diversified order book and established execution capabilities position it well for future success.
Conclusion
The Enviro Infra Engineers IPO presents a compelling investment opportunity amid strong subscription numbers and positive market sentiment reflected in its rising GMP. Investors are encouraged to consider their long-term investment strategies when deciding whether to apply.
Disclaimer
The views and recommendations expressed in this article are those of individual analysts or brokerage firms and do not reflect the views of India Hood or its affiliates. It is advisable for investors to conduct their own research or consult with qualified financial advisors before making any investment decisions.
