Concord Enviro Systems makes a decent debut, shares list at 17.8% premium over IPO price

Shares of Concord Enviro Systems Ltd made a decent debut on Friday, December 27, with the stock listing at a 17.8% premium on the stock exchanges.

The Concord Enviro Systems stock opened the session at ₹826 apiece on the National Stock Exchange of India (NSE), up 17.83% compared with its initial public offering (IPO) price of ₹701 per share. Within minutes of trade, Concord Enviro Systems price fell another 2.1% to hit the day’s low of ₹801 per share.

As the minimum quantity to apply for the Concord Enviro Systems IPO was 21 shares, successful bidders who were allotted shares in the primary issues would be sitting on listing gains of ₹2,625 (₹125 x 21) per lot as soon as the stock started to trade on exchanges.

Concord Enviro Systems IPO subscription status

The ₹500.33-crore Concord Enviro Systems IPO was open for bidding from December 19 to December 23. The mainboard issue was oversubscribed 10.67 times during the three-day bidding period.

The mainboard issue was a mix of fresh issuance of nearly 25 lakh shares, worth up to ₹175 crore, and an offer-for-sale (OFS) of 46 lakh shares, aggregating to ₹325.33 crore.

Price band for the issue was fixed at ₹665 to ₹701 per share, with the minimum lot size for bidding being 21 shares.

Ahead of the launch of the IPO, Concord Enviro Systems Ltd had also mobilised ₹150.1 crore in its anchor round of fund-raising.

Motilal Oswal Investment Advisors Ltd and Equirus Capital Private Ltd were the book-running lead managers of the Concord Enviro Systems IPO.

About Concord Enviro Systems

• Incorporated in 1992, Concord Enviro Systems is engaged in water management and wastewater treatment.
• It provides total water management services encompassing consultancy in complete water management from concept through basic and detailed engineering to commissioning and monitoring operations.
• As of March 2024, Concord Enviro Systems exported its solutions to various regions globally, including North America, Latin America, Africa, the Middle East and Southeast Asia. The company has two manufacturing facilities – one in Vasai (India) and another in Sharjah (the UAE).
• Concord Enviro Systems has proposed to use the IPO funds to invest in its wholly-owned subsidiary Concord Enviro FZE (CEF) for setting up a new assembly unit for water treatment systems, in addition to its working capital requirement.
• A portion of the funds will also be invested in another subsidiary, Rochem Separation Systems India, to expand the company’s manufacturing facilities and support activities.
• The company would also use the proceeds from the fresh issue for investment in its joint venture, Reserve Enviro Pvt. Ltd, to grow its pay-per-use/pay-as-you-treat business.
• The remaining portion of the funds will be used for debt repayment, technology and growth initiatives, working capital requirements and general corporate purposes.