Apex Ecotech Shares Debut at 90% Premium Over IPO Price on NSE SME Platform

Apex Ecotech shares debuted at a remarkable 90% premium, listing at ₹138.7 on the NSE SME platform on Wednesday, 4th December 2024. The company, a water and wastewater management solutions provider, received overwhelming demand for its IPO. 

 

 

Apex Ecotech Listing Details

• Listing Time & Price: Apex Ecotech share price opened at ₹138.7 on NSE SME, significantly higher than the IPO issue price of ₹73. 
• Premium Over Issue Price: The listing price reflected a 90% premium over the IPO issue price, showcasing strong investor sentiment. 
• GMP Signals: Prior to the listing, shares commanded a grey market premium (GMP) of ₹45, indicating 62% listing gains. 

 

Apex Ecotech  First-Day Trading Performance

• Price Range: The stock traded between ₹138.7 and ₹145.6, hitting the upper circuit limit soon after listing. 
• Market Capitalisation: By market close, the company's valuation stood at ₹191.98 crore. 
• Volume Traded: Approximately 15.33 lakh shares were traded, reflecting robust investor interest.

 

Apex Ecotech  Market Sentiment and Analysis 

• Subscription Details: Apex Ecotech IPO saw a 457.15x subscription, driven by non-institutional investors (1,180.02x), retail investors (329.64x), and QIBs (136.68x). 
• Investor Gains: Retail investors who secured one lot of 1,600 shares at the issue price of ₹73 earned a profit of ₹1,05,120. 
• Demand Insights: The strong listing and immediate upper circuit indicate investor confidence and demand for the company's offerings in the water management sector.

 

Apex Ecotech  Growth Drivers and Challenges 

 Drivers of Future Growth 

• Expertise in water and wastewater management solutions. 
• A diverse client base, including Aditya Birla Group, Ashok Leyland, and Escorts Kubota. 
• Focus on advanced technologies like zero liquid discharge systems and reverse osmosis solutions. 
• Strong demand for environmental and sustainable solutions. 

 

Potential Challenges 

• Competition in the water treatment industry. 
• Dependence on industrial projects, making revenues sensitive to macroeconomic conditions. 
• Regulatory compliance and evolving environmental norms.

 

Utilisation of IPO Proceeds 

The company plans to deploy funds raised through the IPO for: 

• Working Capital: Addressing operational needs. 
• Corporate Purposes: Enhancing service offerings and expanding capabilities. 
• Public Issue Expenses: Covering costs related to the IPO. 

Financial Performance 

• Revenue increased from ₹42.6 crore in FY2023 to ₹67.3 crore in FY2024, representing a 58% growth. 
• Profit After Tax (PAT) rose by 120% from ₹3.5 crore in FY2023 to ₹7.7 crore in FY2024. 
• Strong operational performance in the first half of FY2025 further bolstered confidence. 

 

Company Overview

• Founded in 2009, Apex Ecotech specializes in: 
• Setting up raw water treatment and effluent treatment plants. 
• Recycling wastewater using advanced membrane systems like ultra-filtration and reverse osmosis. 
• Offering thermal evaporators and crystallizers for zero liquid discharge systems. 

 

The company’s ability to deliver end-to-end water management solutions, coupled with after-sales and maintenance services, has cemented its reputation in the industry. 
 
As Apex Ecotech forges ahead in its journey as a publicly listed company, the stellar listing performance reflects its strong fundamentals and market potential. Investors and analysts will closely watch its ability to maintain growth and meet its financial and operational goals.