Enviro Infra Engineers IPO opens on Nov 22: Check price band, offer size, business model & more

Enviro Infra Engineers Limited IPO will open for subscription next week on Friday, November 22. The company aims to raise ₹650.43 crore via its initial public offering.

Ahead of the opening of the IPO for subscription, here are five key details to know about Enviro Infra Engineers Limited public offer before bidding.

Enviro Infra Engineers: Business model

Enviro Infra Engineers is in the business of designing, constructing, operating and maintaining Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities. The company offers services for Sewage Treatment Plants (STPs), Sewerage Schemes (SS) and Common Effluent Treatment Plants (CETPs).

WWTPs and WSSPs are partially funded by the Central Government through schemes such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and fully funded under the National Mission for Clean Ganga (NMCG). WSSPs are funded by the Central Government schemes like the Jal Jeevan Mission (JJM) for rural areas of the country. The company bids for tenders for developing WWTPs and WSSPs on an Engineering, Procurement and Construction or Hybrid Annuity Model basis.

Enviro Infra Engineers financials and key competitors

Enviro Infra Engineers’ revenue from operations stood at ₹207.46 crore in the June quarter of FY25. The company’s profit-after-tax and net worth stood at ₹30.78 crore and ₹323 crore, respectively, in Q1FY25.

The company’s total revenue from operations for FY24 stood at ₹738 crore increasing over 116% from ₹341.66 crore in FY23. Enviro Infra Engineers’ profit-after-tax grew by more than 101% to ₹110.54 crore against ₹54.98 crore in the year-ago period. The company’s net worth for FY24 increased by nearly 131% to ₹292.18 crore from ₹126.51 crore in the preceding fiscal.

The company mentioned in its Red Herring Prospectus (RHP) that its main competitors are various small and mid-sized companies from the wastewater treatment industry such as VA Tech Wabag, Ion Exchange India Ltd, EMS Ltd and Vishnu Prakash R Punglia Ltd.

Enviro Infra Engineers IPO: Price band, issue size, lot size

Enviro Infra Engineers IPO is a book-building issue worth ₹650.43 crore. The mainboard offer comprises a fresh issuance of 3.87 crore shares, amounting to ₹572.46 crore, and an offer-for-sale (OFS) component of 53 lakh shares, amounting to ₹77.97 crore.

Enviro Infra Engineers IPO price band has been set at ₹140 to ₹148 per share. Retail investors can apply for the issue by placing bids for a minimum lot size of 101 shares, aggregating to an investment of ₹14,948 at the upper end of the price band.

The minimum lot size for Small Non-Institutional Investors (sNII) is 14 lots, or 1,414 shares, which amounts to an investment of ₹2,09,272. The lot size for Big Non-Institutional Investors (bNIIs) is 67 lots, or 6,767 shares, which translates to an investment of ₹10,01,516.

Enviro Infra Engineers has reserved 50% of the net offer size for Qualified Institutional Buyers (QIBs). The wastewater management company has set aside as much as 35% of the net issue for retail individual investors, and 15% of the net issue has been reserved for the Non-Institutional Investor (NII) category.

Enviro Infra Engineers IPO dates

Enviro Infra Engineers IPO subscription will remain open from November 22 to November 26. Enviro Infra Engineers IPO share allotment status will likely be finalised on Wednesday, November 27. After allotting shares, refunds will be initiated for unsuccessful bidders on Wednesday, November 27. Successful bidders will receive shares of Enviro Infra Engineers in their demat accounts on Thursday, November 28.

Enviro Infra Engineers Ltd. shares will be listed on the NSE and BSE. The tentative listing date is Friday, November 29.

Enviro Infra Engineers IPO: Key strengths

• The company is increasing its presence in existing geographies such as Gujarat, Rajasthan, Punjab, Karnataka, Haryana, Uttar Pradesh, Madhya Pradesh and Chhattisgarh by undertaking new projects.
• Enviro Infra Engineers has a diversified order book of 21 projects across India with an aggregate value of ₹ 1,906.28 crore, as of June 30, 2024.
• The company claims in its RHP that it has in-house execution capabilities with timely delivery and established track record enabling consistent increase in eligibility for high value project tenders The company uses advanced technologies for constructing and installing WWTPs and WSSPs.

Enviro Infra Engineers IPO: Risks and threat

• The company mentioned in its RHP that it relies on third parties engaged in the civil construction activities for installing its Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs). Factors upsetting the performance of their obligations could adversely affect the company’s projects.
• Enviro Infra Engineers has experienced negative cash flows in the past and may continue to do so in the future.
• Any increase in the prices of construction materials and labour can have an adverse effect on the company’s business.
• The company’s business is exposed to implementation risks and other uncertainties which may adversely affect its business, results of operations and financial condition.