Denta Water shares hit 5% upper circuit after listing at 10.54% premium on NSE

The shares of Denta Water and Infra Solutions Ltd made a debut on the equity benchmark indices today, January 29, after the company witnessed a good response to its initial public offering (IPO).

During the intraday, shares had hit 5% of upper circuit after listing at 10.54% premium on NSE.

“Trading Members of the Exchange are hereby informed that effective from January 29, 2025, the equity shares of Denta Water and Infra Solutions Ltd are listed and admitted to dealings on the Exchange in the list of ''T'' Group Securities,” a BSE notice said on Wednesday.

The IPO, which closed on January 24, received strong interest, especially from non-institutional investors (NIIs).

The retail category received over 23.71 crore bids for the 26.25 lakh shares available, resulting in a 90.33 times oversubscription. The NIIs applied for over 57 crore shares, with their portion oversubscribed by 507 times. The qualified institutional buyers (QIBs) used more than 35.54 crore shares, resulting in nearly 237 times oversubscription.

The ₹220.50 crore IPO was solely a fresh issuance of 75 lakh equity shares. There is no offer-for-sale component.

Before the IPO, the company had raised ₹66.15 crore from anchor investors, including Rajasthan Global Securities, Abakkus Diversified Alpha Fund-2, Finavenue Capital Trust, Saint Capital Fund, Steptrade Revolution Fund, Astorne Capital VCC—Arven and Aarth AIF, and Chhatisgarh Investments Ltd.

About Denta Water and Infra Solutions

The company plans to use ₹150 crore from the IPO funds to meet working capital needs for FY25 and FY26, with some funds also allocated for general corporate purposes.

Between FY22 and FY24, Denta Water’s revenue from operations rose at a CAGR of 41.2%, while net profit rose 24.8% during the same period. Meanwhile, the Indian water and wastewater treatment market is expected to grow at a CAGR of 6.2%, reaching $23.85 billion by 2033, up from $13.10 billion in 2023.