Enviro Infra Engineers made a remarkable stock market debut on November 29, with shares listing at ₹220 on the National Stock Exchange (NSE), marking a premium of 48.65% over its issue price of ₹148. The company’s successful listing reflects strong investor confidence in its business model and growth prospects in the water infrastructure sector.
Table of Contents
Enviro Infra Share Price: IPO Performance and Subscription Details
Overwhelming Response
The IPO garnered exceptional interest across investor categories:
- Overall subscription: 89.90 times
- QIB subscription: 157.05 times
- Non-institutional investors: 153.80 times
- Retail investors: 24.48 times
Issue Structure
- Total issue size: ₹650 crore
- Fresh issue: 3.90 crore shares
- Offer for Sale: 52.68 lakh shares
- Price band: ₹140-148 per share
Opportunities
- Growing water infrastructure sector
- Strong order book
- Proven execution capabilities
- Technological advancement
Risk Factors
- Working capital intensive business
- Dependency on third-party vendors
- Material price fluctuations
- Labor cost variations
The company’s future success will depend on its ability to manage these factors while maintaining its growth trajectory in the competitive infrastructure sector.
Company Overview and Financials
Business Profile
Established in 2009, Enviro Infra Engineers has established itself as a specialist in:
- Water treatment infrastructure
- Wastewater treatment facilities
- Project design and construction
- Infrastructure maintenance
Financial Performance
The company has shown strong growth:
- FY24 Revenue: ₹728.9 crore
- FY24 Net Profit: ₹108.5 crore
- Revenue CAGR (FY22-24): 48%
- Profit CAGR (FY22-24): 46.5%
Strategic Advantages
Key Strengths
- In-house execution capabilities
- Diverse order book worth ₹1,906.28 crore
- Advanced technology implementation
- Pan-India presence with 21 projects
Read More: IREDA Share Price Analysis: Strong Performance Amid Market Downturn
FAQs
Q1: What factors contributed to Enviro Infra Engineers’ strong listing premium?
The company’s impressive listing can be attributed to its strong financial growth, robust order book, specialized expertise in the water infrastructure sector, and overwhelming IPO subscription rates across investor categories. The company’s track record of consistent growth and strategic positioning in the infrastructure sector also played crucial roles.
Q2: How does the company plan to utilize the IPO proceeds?
The funds will be allocated for multiple purposes including working capital requirements, debt repayment, investment in subsidiary EIEL Mathura Infra Engineers Pvt Ltd for the Mathura Sewerage Scheme project, potential acquisitions, and general corporate purposes.
