Enviro Infra Engineers IPO Listing Live Updates: Shares list at 50% premium over issue price

Enviro Infra’s listing surpassed Street expectations, reflecting strong demand for the theme-based sector of water and wastewater management. According to Prashanth Tapse of Mehta Equities, the healthy listing gains are justified by the reasonable IPO valuation, sector-specific focus, and the increasing relevance of water and wastewater infrastructure development for both government initiatives and industries, along with a 2.5x order book visibility.

Considering these factors and improving market sentiment, Tapse suggests that conservative investors who were allotted shares may consider booking profits due to ongoing market volatility. On the other hand, risk-takers are advised to hold the stock for the long term despite potential short-term fluctuations. For non-allotted investors, he recommends accumulating shares on dips following the listing.

Enviro Infra Engineers’ total market capitalisation stood at ₹3,861.66 crore on the NSE at around 10:15 am.

Shares of Enviro Infra Engineers Ltd. made an impressive debut on Friday, November 29, listing with nearly 50% premium, as against the IPO price of ₹148. The listing gains beat analyst estimates of a 15-35% premium. Read here

Shares of ​Enviro Infra Engineers Ltd. settled at ₹218 in pre-opening trade on Friday.

Enviro Infra Engineers is expected to make a strong debut on the stock market, with a premium of approximately 35% on the upper price band, reflecting robust investor interest, as indicated by the subscription rate of 89.90 times. The company operates in India’s rapidly growing water and wastewater treatment sector, fueled by increasing water demand, urbanization, and supportive government initiatives like the Hybrid Annuity Model (HAM) and Namami Gange.

Post the listing, for investors who received the allotment, analysts said they can book profits if the premium is more than 25%. This is due to current market volatility.

The proceeds from the fresh issue to the tune of ₹181 crore will be utilised to meet the working capital requirements, ₹100 crore for payment of debt, ₹30 crore will be infused into the company’s subsidiary, EIEL Mathura Infra Engineers, to build 60 million litres per day Sewage Treatment Plant (STP) at Mathura in Uttar Pradesh.

The grey market premium (GMP) for Enviro Infra Engineers IPO has taken a big jump and surged to ₹57 from the earlier premium of ₹41 a few days earlier. Read full report here

Prashanth Tapse of Mehta Equities advised long-term investors to consider holding the company for the long term, despite short-term market volatility and risks. For investors who were not allotted shares, he recommended accumulating on dips after the listing.

Its significant reliance on government contracts (100% of FY24 revenue) makes it highly dependent on government spending in the water treatment sector.

The company’s revenue increased by 116% and profit after tax (PAT) rose by 101% between the financial year ending with March 31, 2024 and March 31, 2023.

​​Shares of Enviro Infra Engineers will be listed on the stock exchanges today, November 29, with trading set to begin at 10 am.

Enviro Infra Engineers Ltd (EIEL) designs, constructs, operates, and maintains Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government bodies in India. Established in 2009 and headquartered in Delhi , the company has developed 28 WWTPs and WSSPs, focusing on projects with capacities of 10 MLD (Million Liters per Day) or more across various states of India. EIEL bids for state & local government projects and forms joint ventures to enhance its technical and financial capabilities. Enviro Infra undertakes projects based on Engineering, Procurement and Construction (EPC) or Hybrid Annuity Model (HAM) contracts.

Given the strong investor interest, robust fundamentals, and positive market sentiment, Shivani Nyati of Swastika Investmart expects the stock to list with a significant premium of around 35%. However, Nyati said the actual listing performance could be influenced by broader market conditions. Long-term performance will depend on the company’s ability to execute projects efficiently, manage costs, and adapt to evolving industry dynamics.

Hem Securities Ltd acted as the book running lead manager of the Enviro Infra Engineers IPO, while Bigshare Services Pvt Ltd was the registrar.

Ahead of the listing, the company’s shares were trading with a GMP of ₹57 in the grey market. Going by the GMP trends, the stock is expected to see a healthy listing at the bourses.

• FY22: ₹169.8 crore
• FY23: ₹1,497 crore
• FY24: ₹2,126 crore
• Q1 FY25: ₹1,906 crore

• ₹181 crore – To meet working capital requirements
• ₹30 crore – Infusion of funds into EIEL Mathura to build a 60 MLD STP under Mathura Sewerage Scheme in Uttar Pradesh.
• ₹120 crore – Repayment of Outstanding borrowings
• ₹319 crore – Funding inorganic growth through acquisitions and general corporate purposes

• Leading engineering company specializing in the design, construction and maintenance of water and wastewater treatment solutions.
• Company has developed 28 WWTPs and WSSPs across India in the past seven years.
• WSSPs is Water Supply Scheme Projects
• WWTPs is Water and Wastewater Treatment Plants

Enviro Infra Engineers’ three-day IPO, ₹650 crore in size, comprised of a fresh issue of shares worth ₹572 crore, while the rest was an Offer for Sale (OFS) component.

The three-day issue was subscribed nearly 90 times overall, with the institutional portion (QIB) being subscribed 157 times the total shares on offer for them. The Non-Institutional Portion (NII) too was subscribed 153 times the shares on offer for them, while the retail portion saw subscription of 24.5 times.

Good Morning!

Welcome to CNBC-TV18’s LIVE coverage of the listing of Enviro Infra Engineers on the bourses today, November 29. The three-day IPO saw healthy subscription and is also likely to see an equally healthy listing as well if grey market premiums are to be believed.

Follow this space for all the LIVE updates.