Envirotech Systems shares hit 5% upper circuit after stellar debut at 90% premium

Shares of Envirotech Systems Ltd made a spectacular trading debut on Tuesday, September 24, with the stock listing at a 90% premium on the NSE SME platform, Emerge.

The Envirotech Systems stock opened the session at ₹106.4 apiece, up 90% compared to its initial public offering (IPO) price of ₹56 per share. Within minutes of trade, the share price rose 5% further to hit its upper circuit at ₹111.7 apiece.

As the minimum bid quantity to apply for the Envirotech Systems IPO was 2,000 shares, successful bidders who were allotted shares in the primary issue were sitting on listing gains of at least ₹1 lakh (₹50.4 x 2,000) as soon as trading began in the stock on the NSE Emerge platform.

Notably, the ₹30.24-crore Envirotech Systems IPO was open for subscription from September 13 till September 19. During the five-day bidding period, the issue was booked over 92 times, with investors placing bids for 30.24 crore shares against 32.92 lakh shares on offer.

The non-institutional investors’ (NIIs) portion was subscribed the most at over 188 times, while the qualified institutional buyers’ (QIBs) segment was booked more than 68 times. The portion reserved for retail investors, meanwhile, was subscribed over 64 times.

The Envirotech Systems IPO was a 100% book-built issue made up entirely of a fresh issuance of 54 lakh shares, with no offer-for-sale (OFS) component.

Price band for the IPO was set at ₹53 to ₹56 per share, while the lot size was 2,000 shares.

Ahead of the launch of the IPO, Envirotech Systems had also raised ₹7.87 crore in its anchor investor round. The Board of the company at its meeting held on September 12 finalised allocation of 14.06 lakh shares to three anchor investors at an allocation price of ₹56 per share.

Envirotech Systems had earlier said that it proposed to utilise the funds raised towards purchasing land and building for setting up a factory, funding of working capital requirements, and to meet general corporate expenses and issue expenses. The company also wanted to achieve the benefits of listing on the Emerge Platform of NSE.

Founded in 2007, Envirotech Systems manufactures noise measurement and control solutions for industrial and commercial applications.

The company focuses on designing and supplying custom enclosures aimed at reducing noise from machinery, suitable for indoor and outdoor use.

Their product range includes acoustic enclosures, noise barriers, test booths, anechoic chambers and metal doors.

The company offers its services across India and has delivered successful projects to industries such as oil and gas, manufacturing, power generation, cement and steel, automotive and construction.

Envirotech Systems’ revenue increased 63% to ₹46.88 crore in the financial year 2023-24 compared to ₹28.75 crore in 2022-23. Profit after tax (PAT) surged multifold to ₹11.4 crore in FY24 as against ₹2.58 crore in FY23.