Enviro Infra Engineers Limited is set to launch its Initial Public Offering (IPO) with a total issue size of ₹650.43 crores. This includes a fresh issue of ₹572.46 crores and an offer for sale of ₹77.97 crores. Here's everything you need to know about the IPO and the company's background.

IPO Details

• IPO Date: November 22, 2024 – November 26, 2024
• Price Band: ₹140 to ₹148 per share
• Minimum Lot Size: 101 shares
• Total Issue Size: 43,948,000 shares (₹650.43 Cr)
  • Fresh Issue: 38,680,000 shares (₹572.46 Cr)
  • Offer for Sale: 5,268,000 shares (₹77.97 Cr)
• Employee Reservation: 100,000 shares at a discount of ₹13 per share
• Listing: BSE and NSE
• Face Value: ₹10 per share

Important Dates

• Subscription Period: November 22 – November 26, 2024
• Basis of Allotment: November 27, 2024
• Refunds Initiation: November 27, 2024
• Credit of Shares to Demat: November 28, 2024
• Listing Date: November 29, 2024

Investment Details

• Retail Minimum Investment: ₹14,948 (101 shares)
• Retail Maximum Investment: ₹194,324 (1,313 shares)
• Small HNI Minimum Investment: ₹209,272 (1,414 shares)
• Large HNI Minimum Investment: ₹1,001,516 (6,767 shares)

Promoters

The promoters of the company are Sanjay Jain, Manish Jain, Ritu Jain, and Shachi Jain.

Company Overview

Founded in 2009, Enviro Infra Engineers Limited specializes in the design, construction, operation, and maintenance of water and wastewater treatment projects. These include:

• Water Supply Projects (WSSPs): Water Treatment Plants, pumping stations, and pipeline networks.
• Wastewater Treatment Plants (WWTPs): Sewage Treatment Plants, Sewerage Schemes, and Common Effluent Treatment Plants.

The company primarily serves government agencies and participates in tenders for projects executed under EPC or Hybrid Annuity Models (HAM). Over the past seven years, Enviro Infra Engineers has successfully completed 28 projects across India, including 22 projects with capacities of 10 MLD or more.

Competitive Strengths

1. In-House Expertise: Strong team for design, engineering, and execution, comprising 180 engineers supported by industry experts.
2. Strong Track Record: Proven ability to execute high-value projects on time.
3. Geographic Diversity: Expanding presence across India with a diverse order book.
4. Advanced Technology: Adoption of cutting-edge techniques in WWTP and WSSP projects.
5. Experienced Leadership: Led by a team with significant experience in the infrastructure sector.

Key Financials

Enviro Infra Engineers has demonstrated strong financial growth:

• Revenue Growth: 116% between FY23 and FY24.
• PAT Growth: 101% between FY23 and FY24.

Key Performance Indicators

• Market Cap: ₹2,597.84 Cr
• Return on Equity (ROE): 51.68%
• Return on Capital Employed (ROCE): 32.34%
• Debt-to-Equity Ratio: 0.8
• PAT Margin: 15.17%

IPO Objectives

The company intends to utilize the proceeds from the IPO for the following:

1. Working Capital Requirements: Strengthen operational capabilities.
2. Funding Subsidiary Projects: Finance a 60 MLD Sewage Treatment Plant in Mathura under HAM.
3. Debt Repayment: Prepay or repay outstanding borrowings.
4. Inorganic Growth: Fund acquisitions and corporate expansion.

Conclusion

Enviro Infra Engineers IPO offers a unique opportunity to invest in a company with a proven track record in water and wastewater management. Its strategic focus on government projects, strong financial growth, and robust operational capabilities make it an attractive prospect for investors seeking exposure to the infrastructure sector.

Disclaimer: Investors are advised to review the RHP and consult with financial advisors before making investment decisions.