Enviro Infra Engineers IPO

Enviro Infra Engineers IPO is a book-built issue valued at ₹650.43 crore, consisting of a fresh issue of 3.87 crore shares worth ₹572.46 crore and an offer for sale of 0.53 crore shares amounting to ₹77.97 crore. The IPO opens for subscription on November 22, 2024, and closes on November 26, 2024. 

Allotment is expected on November 27, 2024, with a tentative listing on BSE and NSE set for November 29, 2024. The price band is fixed at ₹140 to ₹148 per share. Retail investors must apply for a minimum lot of 101 shares, requiring a minimum investment of ₹14,948. 

For sNII, the minimum investment is 14 lots (1,414 shares), totalling ₹2,09,272, while for bNII, it is 67 lots (6,767 shares), amounting to ₹10,01,516. The issue includes up to 1 lakh shares reserved for employees, offered at a ₹13 discount. Hem Securities Limited is the lead manager, with Bigshare Services Pvt Ltd as the registrar.

Industry Outlook

1. India’s per capita water availability may decline to 1,140 cubic meters by 2050, intensifying the need for robust wastewater treatment and resource management.

1. India generates over 72,000 million litres of wastewater daily, highlighting the urgent need for 4,500+ sewage treatment plants (STPs) across urban and semi-urban areas.

Enviro Infra Engineers IPO Objectives 

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. To meet the Working Capital Requirements.
2. Infusion of funds in the Subsidiary, EIEL Mathura Infra Engineers Private Limited (“EIEL Mathura”) to build 60 MLD STP under the project titled ‘Mathura Sewerage Scheme” at Mathura in Uttar Pradesh through Hybrid Annuity Based PPP Mode.
3. Repayment/prepayment, in full or in part, of certain of the outstanding borrowings.
4. Funding inorganic growth through unidentified acquisitions and general corporate purposes.

About Enviro Infra Engineers Limited 

Established in 2009, Enviro Infra Engineers Limited specialises in the design, construction, operation, and maintenance of water and wastewater treatment projects for government agencies. The company focuses on Wastewater Treatment Plants (WWTPs), including Sewage Treatment Plants (STPs), Sewerage Schemes (SS), and Common Effluent Treatment Plants (CETPs), as well as Water Supply Projects (WSSPs) involving Water Treatment Plants (WTPs), pumping stations, and pipeline installations. 

The company participates in government tenders on an EPC or HAM basis and has completed 28 projects, including 22 with capacities of 10 MLD or higher. As of June 30, 2024, its order book stands at ₹1,90,628.06 lakh. With a skilled in-house team of 180 engineers, Enviro Infra Engineers ensures quality and compliance. It also integrates sustainable energy solutions, including solar and Compressed Bio Gas (CBG) plants, to enhance environmental sustainability, focusing on projects aligned with green initiatives.

How To Check the Allotment Status of the Enviro Infra Engineers IPO?

A: Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for Enviro Infra Engineers IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Enviro Infra Engineers IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Enviro Infra Engineers IPO Lot Size

Retail and HNI investors can bid for a minimum of 101 shares, with investments required in multiples of 101. The following table outlines the minimum and maximum investment details for retail investors and HNIs based on the number of shares and the corresponding amount:

Application Type	Lots	Shares	Amount (₹)
Retail (Min)	1	101	14,948
Retail (Max)	13	1,313	194,324
S-HNI (Min)	14	1,414	209,272
S-HNI (Max)	66	6,666	986,568
B-HNI (Min)	67	6,767	1,001,516

Enviro Infra Engineers IPO Reservation

The Enviro Infra Engineers IPO offers a total of 4,39,48,000 shares with reservations for different investor categories. Below is the breakdown of shares offered to each category and the maximum number of allottees:

investor Category	Shares Offered	Percentage	Maximum Allottees
Anchor Investor Shares	1,31,54,400	29.93%	NA
QIB Shares	87,69,600	19.95%	NA
NII (HNI) Shares	65,77,200	14.97%	NA
- bNII (₹10L and above)	43,84,800	9.98%	3,100
- sNII (Below ₹10L)	21,92,400	4.99%	1,550
Retail Shares	1,53,46,800	34.92%	1,51,948
Employee Shares	1,00,000	0.23%	NA
Total Shares Offered	4,39,48,000	100%	—

Enviro Infra Engineers IPO Anchor Investor Details

Enviro Infra Engineers IPO raised ₹194.69 crore from anchor investors on November 21, 2024, the designated anchor bid date.

Details	Information
Anchor Bid Date	November 21, 2024
Shares Offered to Anchor Investors	13,154,400
Anchor Portion Size (₹ Cr.)	₹194.69 crore
Anchor Lock-in Period End Date (50% Shares)	December 27, 2024 (30 days)
Anchor Lock-in Period End Date (Remaining Shares)	February 25, 2025 (90 days)

Enviro Infra Engineers IPO Promoter Holding

Sanjay Jain, Manish Jain, Ritu Jain, and Shachi Jain are the company's promoters.

Share Holding Pre-Issue	93.66%
Share Holding Post Issue	NA

Key Performance Indicators (KPI) for Enviro Infra Engineers IPO

The market capitalisation of Enviro Infra Engineers IPO is ₹2,597.84 crore as of March 31, 2024.

KPI	Value
ROE	51.68%
ROCE	32.34%
Debt/Equity	0.8
RoNW	37.83%
P/BV	6.89
PAT Margin (%)	15.17%

Enviro Infra Engineers IPO Registrar and Lead Managers

Enviro Infra Engineers IPO Lead Managers:

• Hem Securities Limited

Registrar for Enviro Infra Engineers IPO

Bigshare Services Pvt Ltd

• Contact Number:+91-22-6263 8200
• Email Address: ipo@bigshareonline.com

Enviro Infra Engineers IPO Financials

Particulars	For the period ended June 30, 2024	Year ending on March 31, 2024	Year ending on March 31, 2023
Revenue from operation (in ₹ lakh )	20,518.02	72,891.50	33,810.20
Profit After Tax (PAT) (in ₹ lakh)	3,077.77	11,054.41	5,497.81
Total Borrowings (in ₹ lakh)	30,558.94	23,359.49	6,454.43
Net Worth (in ₹ lakh)	32,299.61	29,218.37	12,651.40
Debt Equity Ratio (x)	0.95	0.80	0.51
Order Book (in ₹ lakh)	1,90,628.06	2,12,558.63	1,49,668.63
Return on Net Worth (RoNW) (%)	9.53%	37.83%	43.46%
Earning Per Share (EPS)-in absolute ₹	2.25	8.13	4.29

Know before investing

Strengths

6

1. In-house design and engineering team with 180 skilled engineers.

2. Expanding presence in 8 states with a diversified project portfolio.

3. Strong order book of ₹1,90,628.06 lakhs, ensuring future revenue.

4. Expertise in advanced WWTP technologies like SBR and MBBR.

5. Proven track record with 28 projects completed in 7 years.

6. Experienced promoters with over 20 years in water treatment.

Risks

6

1. Heavy reliance on government projects may impact future revenue streams.

2. High competition in government bids affects project award certainty.

3. Loss of skilled employees may delay project execution timelines.

4. Working capital requirements exceed ₹75,339.89 lakhs in FY 2025.

5. Joint venture risks may increase financial and legal liabilities.

6. Fluctuating raw material prices may cause unexpected cost overruns.

Enviro Infra Engineers Limited Peer Details Comparison

Company Name	EPS (Basic)	EPS (Diluted)	NAV (Per Share) (Rs)	RoNW (%)
Enviro Infra Engineers Limited	8.13	8.13	21.48	37.83
Ion Exchange (India) Ltd.	16.53	16.53	143.73	19.09
Va Tech Wabag Ltd.	39.49	39.49	69.4	19.23
Vishnu Prakash R Punglia Limited	10.95	10.95	292.43	13.5
EMS Limited	29.38	29.38	57.85	16.95