The Enviro Infra Engineers IPO has garnered significant interest from investors as it approaches its closing date on November 26, 2024. With a strong subscription status and a rising grey market premium (GMP), potential investors are evaluating whether to apply for this public offering. Here’s a detailed look at the current status of the IPO, its GMP, and expert recommendations.
Current Subscription Status
As of the third day of bidding, the Enviro Infra Engineers IPO has been oversubscribed 12.52 times overall. Here’s the breakdown of subscriptions by category:
- Retail Investors: 8.73 times
- Non-Institutional Investors (NIIs): 34.60 times
- Qualified Institutional Buyers (QIBs): 2.58 times
This robust demand indicates strong investor confidence in the company’s prospects, particularly in the water and wastewater management sector.
Grey Market Premium (GMP)
The grey market premium for Enviro Infra Engineers shares has risen to ₹55, up from ₹53 on the previous day. This increase reflects positive sentiment towards the IPO and suggests that investors are willing to pay a premium over the issue price of ₹148 per share. The GMP has shown impressive growth over the past week, rising from ₹23 to ₹55, signaling strong market interest.
Should You Apply?
Analysts have mixed views on whether to apply for the IPO:
- Anshul Jain, Head of Research at Lakshmishree Investment and Securities, recommends a cautious approach, stating that while the company showed impressive growth in FY24 with a revenue increase of over 115%, recent quarterly results indicated a decline in revenue and profit after tax (PAT). He suggests that high-risk investors might consider applying for potential listing gains.
- Akriti Mehrotra, Research Analyst at StoxBox, assigns a “subscribe” rating to the IPO, highlighting Enviro Infra’s diversified portfolio of projects and its commitment to sustainable practices. She notes that the company has shown consistent financial growth with a revenue compound annual growth rate (CAGR) of 80.6% from FY22 to FY24.
Company Overview
Enviro Infra Engineers specializes in designing, constructing, operating, and maintaining water and wastewater treatment plants. Its portfolio includes various projects such as sewage treatment plants and water supply schemes primarily for government authorities. The company aims to utilize IPO proceeds for:
- Working Capital Requirements: ₹181 crore
- Repaying Outstanding Borrowings: ₹120 crore
- Investment in Subsidiary: ₹30 crore for developing a sewage treatment plant in Mathura
Important Dates
| Event | Date |
|---|---|
| IPO Opening Date | November 22, 2024 |
| IPO Closing Date | November 26, 2024 |
| Allotment Date | November 27, 2024 |
| Shares Credited to Demat | November 28, 2024 |
| Listing Date | November 29, 2024 |
Conclusion
With strong subscription numbers and an increasing grey market premium, the Enviro Infra Engineers IPO presents an appealing opportunity for investors looking to capitalize on growth in the infrastructure sector. However, potential applicants should carefully consider their risk appetite and consult with financial advisors before making investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
