By Vineet Kumar 
Enviro Infra Engineers IPO Day 1: Should You Subscribe?
The much-anticipated Enviro Infra Engineers IPO kicked off with a bang on its first day, with a notable 26% jump in Grey Market Premium (GMP). Market buzz suggests robust interest, as the unlisted shares are trading at a premium of ₹38, equating to a 25.68% rise over the upper price band of the IPO. This has put the spotlight on whether this offering is worth your investment. Let’s break it down.
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Key Highlights of the IPO
1. IPO Structure:
Fresh Issue: 3.86 crore shares
Offer for Sale (OFS): 52.68 lakh shares, with promoters like Sanjay Jain and Manish Jain cashing out partially.
2. Price Band: ₹140-148 per share
Minimum investment: ₹14,948 (101 shares per lot)
Maximum retail investor bid: ₹1,96,324 (13 lots or 1,313 shares)
3. Timeline:
Subscription window: November 21–26, 2024
Allotment: November 27, 2024
Listing: November 29, 2024, on NSE and BSE
4. Fund Usage:
Proceeds from the fresh issue will be used for:
Working capital needs
Investment in a 60 MLD sewage treatment project under the Mathura Sewerage Scheme
Debt repayment
Unidentified acquisitions and general corporate purposes
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Financial Snapshot
Enviro Infra Engineers has been showing remarkable growth:
Revenue: Jumped to ₹738 crore in FY24 (up 116% from FY23)
Net Profit: ₹110.54 crore in FY24, more than double the ₹54.97 crore of FY23
Order Book: A solid ₹1,906 crore, spread across 21 projects, including advanced water and wastewater treatment solutions.
This growth aligns with India’s increasing focus on water infrastructure projects under schemes like Jal Jeevan Mission and Namami Gange.
What Experts Are Saying
Deven Choksi Research – Subscribe
The firm is optimistic about Enviro Infra’s focus on renewable solutions, such as solar and biogas, and its strong alignment with the growing global water treatment market (CAGR: 6.1%). Analysts highlight:
Valuation: EV/EBITDA at 16x, P/E at 24x—attractive compared to peers
Strengths: A robust pipeline of margin-boosting operations and maintenance (O&M) contracts.
Example: Their sustainable practices could position them as leaders in India’s expanding water infrastructure market.
Anand Rathi Research – Subscribe for Long-Term
This brokerage is betting on the company’s in-house engineering expertise (180 engineers), timely project delivery, and cutting-edge technologies for water treatment projects.
Fair Valuation: P/E of 30.72x, with a market cap of ₹2,599.6 crore post-issue.
ROI: Impressive 37.83% return on net worth.
Example: If they can scale like they did with Mathura’s sewage project, long-term investors could see good returns.
Bajaj Broking – Long-Term Subscribe
The brokerage lauds Enviro Infra’s track record of completing high-value tenders.
Key Risks: Challenges like groundwater depletion and regional funding issues could pose hurdles.
Example: The advanced technologies they use, like real-time monitoring in WWTPs, set them apart, but scaling could strain resources.
Swastika Investmart – Long-Term Subscribe
Swastika highlights the company’s strong order book, reasonable pricing, and solid revenue growth.
Example: Their focus on new geographies with an expanding project pipeline makes this a promising pick for patient investors.
Should You Invest?
Here’s the gist:
For short-term gains: The strong GMP suggests potential listing gains. If you’re a trader, this could be your play.
For long-term growth: The company’s consistent financial performance, innovative capabilities, and strong market position make it a solid choice for investors with a long-term horizon.
Consider this: Enviro Infra Engineers is like a steady river—constantly flowing forward with a clear direction. While risks exist (funding bottlenecks, environmental challenges), the company’s robust foundation and growing demand for water
infrastructure could deliver strong returns over time.
Would you subscribe, or are you letting this one flow by?
