Everything you need to know about Enviro Infra Engineers IPO

About

Enviro Infra Engineers specializes in designing, constructing, operating, and maintaining Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities, including Zero Liquid Discharge (ZLD) compliant facilities. Their projects are funded under Central and State Government schemes like AMRUT, NMCG, and JJM, and they bid for tenders on an EPC or HAM basis. With 28 successful projects over the past seven years and a ₹1,90,628.06 lakh order book as of June 30, 2024, they also partner with other companies for joint project execution. Supported by a skilled in-house team of 180 engineers, they handle all aspects of project design, construction, and maintenance. Focused on sustainable development, they integrate solar power and Compressed Bio Gas (CBG) plants into projects, contributing to renewable energy and reduced carbon footprints, with 7 out of 21 ongoing projects aligned with these initiatives.

Issue size

Funds Raised in the IPO Amount
Overall ₹650.43 crores
Fresh Issue ₹572.46 crores
Offer for sale ₹77.97 crores

Utilisation of proceeds

Purpose INR crores (%)
Working Capital Requirements 181 (31.62%)
Infusion of funds in subsidiary for Mathura Sewerage Scheme (60 MLD STP) 30 (5.24%)
Repayment/prepayment of certain outstanding borrowings 120 (20.96%)
General corporate purposes 241.46 (42.18%)

Financials

Financial year ended March 2022 March 2023 March 2024 June 2024
Total assets 148.27 347.58 761.19 812.87
Revenue 225.62 341.66 738 207.46
Profit After Tax 34.55 54.98 110.54 30.78

Strengths

  • Proven expertise in designing, building, and maintaining water and wastewater treatment projects focusing on Zero Liquid Discharge compliance.
  • Strong order book as of June 30, 2024, supported by 28 completed projects, including large-scale capacity plants.
  • Focus on sustainability initiatives, integrating solar power and bio-gas systems into operations, contributing to environmental goals.
  • Self-reliance through an in-house team of 180 engineers and construction teams, ensuring high-quality standards and reducing dependency on third parties.

Risks

  • Dependence on government contracts and schemes exposes the company to risks of project delays, cancellations, or lower-than-expected approvals.
  • High reliance on debt for operations and expansion may strain financial stability and affect profitability.
  • Early-stage involvement in bio-gas and renewable energy initiatives presents execution and market adoption risks.
  • Regulatory changes or non-compliance with environmental and labor laws could adversely impact operations and reputation.

IPO schedule

Issue open date 2024-11-22
Issue close date 2024-11-26
UPI mandate deadline 2024-11-26 (5 PM)
Allotment finalization 2024-11-27
Refund initiation 2024-11-27
Share credit 2024-11-28
Listing date 2024-11-29
Mandate end date 2024-12-11
Lock-in end date for anchor investors (50%) 2024-12-27
Lock-in end date for anchor investors (remaining) 2025-02-25