Concord Enviro Systems IPO

Concord Enviro Systems IPO Details

Concord Enviro Systems IPO Date

Concord Enviro Systems Limited IPO will open for subscription on December 19, 2024, and close on December 23, 2024. Investors will be updated about the allotment status on December 24, 2024. 

Investors who have been allotted the company’s shares can expect them to be credited into their demat accounts on December 26, 2024. The shares will be listed on the NSE and the BSE on December 27, 2024. 

Investors who have been allotted shares can expect them to be credited to their demat account on December 26, 2024. The shares will be listed on the NSE and the BSE on Wednesday, December 27, 2024.

Concord Enviro Systems IPO Price Band

The IPO is a fresh issue and an offer for sale. The IPO price band has been set between ₹665 to ₹701 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue of ₹500.33 crore, with a fresh issue of 24,96,433 shares ( amounting to a total of ₹175 crore) and an offer for sale issue of  46,40,888 shares (amounting to a total of ₹325.33 crore).

Concord Enviro Systems Limited  IPO listing price will be determined on December 27, 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Concord Enviro Systems IPO Lot Size

The Concord Enviro Systems Limited  IPO details have been declared. The minimum lot size for an application is 21 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹500.33 crore.

Concord Enviro Systems IPO Objective

The company intends to use ₹105.5 crore from net IPO proceeds to invest in its various wholly owned subsidiaries to develop new projects and repay outstanding loans. The rest of the IPO proceeds will be utilised to invest in technology, new growth initiatives and general corporate purposes.  

About Concord Enviro Systems 

Incorporated on July 1, 1999, Concord Enviro Systems is a leading provider of water and wastewater treatment and reuse solutions using technology like Zero Liquid Discharge (ZLD). The company offers various integrated solutions, including membrane bioreactors, sewage treatment plants, and membrane-based systems like ultrafiltration (UF), nanofiltration (NF), and reverse osmosis (RO). 

The company’s operations focus on three key areas: designing and manufacturing water treatment systems, providing operations & maintenance services to enhance system performance, and supplying consumables and spares such as membranes and chemicals. 

As of August 31, 2024, the company has served over 310 clients globally in sectors such as pharmaceuticals, chemicals, food and beverage, and automotive. Concord Enviro Systems has a presence in North America, Latin America, Africa, the Middle East, and Southeast Asia. Key clients include Diageo, Grasim Industries, and LANXESS India. 

In FY24, the company earned 58.23% of total revenue from the domestic markets, and the rest came from international orders. Its total order book stood at ₹501.74 crore as of August 31, 2024, indicating strong demand for their systems and after-sales services. Meanwhile, the company holds a 14.5% market share in the Indian industrial water recycling and reuse systems segment.

It has two manufacturing facilities, one located in Vasai, Maharashtra, India, and the other in Sharjah, UAE. These facilities focus on innovation through their in-house R&D team, developing advanced membranes and energy-efficient technologies. As of August 2024, it holds 52 registered trademarks and four patents in India to continue enhancing industry-specific solutions.

Between FY22 and FY24, the company's revenue from operations rose at a CAGR of over 22.82%, while net profit rose 58.5% during the same period. Meanwhile, the global recycling and reuse wastewater market is projected to grow at a CAGR of 10.1% to reach $48.6 billion in CY2028. In India, the recycling & reuse market is valued at $235.50 million and is expected to grow further mainly due to innovative technologies and stringent regulations. This rising market trend offers a great opportunity for the company to secure new business opportunities. 

Now, Concord Enviro Systems is launching its initial public offer (IPO). The total IPO issue size is ₹500.33 crores, comprising fresh issue and offer for sale. Its shares will be listed on the NSE and BSE.

Company Name: Concord Enviro Systems Limited.

Company Established On:July 1, 1999

Company Type: Private Limited Company

Managing Director: Mahendra N. Patel

CEO: Prayas Goel

Financial snapshot

Concord Enviro Systems IPO Analysis

Strengths and Opportunities

1. It operates in over 14 countries, with key clients like Diageo Mexico and AB Mauri. Revenue received from the international market grew at a CAGR of 67.41% between FY22 and FY24.
2. Covers the complete wastewater treatment value chain, including manufacturing membranes and systems.
3. Among the top 2 ZLD solutions providers in India by revenue and extensive in-house capabilities from design to digital IoT solutions.
4. Serves diversified industries and high customer retention, with repeat business contributing 96.43% of revenue in FY24.
5. Plans to expand in Latin America, Africa, and Asia, leveraging strong market opportunities in water reuse and ZLD.
6. Led by promoters with over 25 years of industry experience and supported by a senior management team with over 150 years of collective experience.

Risks and Threats

1. Low capacity utilisation in recent years has led to higher production costs and lower profitability and may continue to impact business performance and financial condition.
2. The company relies on its top 10 customers for over 50% of revenue, and any cancellations or delays could potentially impact operations. Dependence on government clients adds further risks.
3. The company's order book may be adjusted or cancelled, meaning future revenue and profit may differ significantly from current estimates, potentially impacting operations.
4. The company's raw material and component costs, which make up over 50% of total expenses, expose it to supply and price fluctuations, which can potentially affect pricing and financial performance.
5. The company does not own some of its manufacturing facilities and office premises, exposing it to potential operational risks.
6. The company's reliance on R&D exposes it to risks if new wastewater technologies are not developed on time or cost-effectively, impacting its performance. 

How to apply for the Concord Enviro Systems?

If you are interested to invest in Concord Enviro Systems, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Concord Enviro Systems’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

You can also pre-apply for the Concord Enviro Systems on Upstox which usually begins a day before the IPO opens for subscription.