Effwa Infra and Research IPO listing: Shares debut at 90% premium on NSE Emerge

Effwa Infra and Research Ltd, a small and medium enterprise engaged in the engineering, procurement and construction (EPC) business, made an impressive debut on Friday, July 12, with the stock price nearly doubling on listing.

Effwa Infra stock opened the session at ₹155.8 apiece on the NSE Emerge platform, up 90% compared with its initial public offering (IPO) issue price of ₹82 per share. Within minutes of trade, the share price rose 5% further from the opening price to hit the day’s high of ₹163.55 apiece, which was just double the issue price.

Since the minimum bid quantity in the Effwa Infra and Research IPO was 1,600 shares, successful bidders who were allotted shares in the public issue would be sitting on a profit of at least ₹1.18 lakh (₹73.80 x 1,600) as soon as trading began in the stock.

The IPO, which was open for subscription from July 5 to July 9, saw bumper demand from investors across categories. The issue was oversubscribed by a whopping 314 times during the three-day bidding period.

The public offer was a 100% book-built issue that aimed to raise a total of ₹51.27 crore.

The IPO was a combination of fresh issue of 53.17 lakh shares of face value of ₹10 each aggregating to ₹43.60 crore and an offer-for-sale (OFS) of 9.36 lakh shares aggregating to ₹7.68 crore in value.

The company had earlier informed that it proposed to utilise the net proceeds from the fresh offer towards funding its working capital requirements, capital expenditure requirements towards the purchase of new office equipment; and for general corporate purposes.

The company had fixed a price band of ₹78 to ₹82 per share for its IPO. Meanwhile, the lot size or the minimum bid quantity for a single application was 1,600 shares.

Ahead of the launch of the IPO, Effwa Infra had also raised ₹14.34 crore from anchor investors. The company made an allocation of 17.49 lakh shares to seven anchor investors at ₹82 apiece.

About Effwa Infra and Research

Founded in 2014, Effwa Infra and Research provides engineering, consulting, procurement, construction and integrated project management services in the field of water pollution control, covering wastewater and industrial effluent treatment, solid waste treatment and disposal, aeration systems, hazardous waste management and water treatment plants.

The company said that it has successfully completed over 45 water management infrastructure projects as of March 2024. Effwa Infra also offers project organisation, management, procurement, financing, and implementation as a consultant and expert.