The initial public offering (IPO) of Enviro Infra Engineers Limited has officially entered the Indian primary market today and will remain open until November 26, 2024. According to the subscription status, the book-built issue was fully subscribed on the first day of bidding. The wastewater management firm has set the IPO price band between INR 140 and INR 148 per equity share, with plans to raise INR 650.43 crore. The public offering consists of a combination of fresh shares and an Offer for Sale (OFS), with the company seeking to raise INR 572.46 crore through new share issuance. The shares are expected to be listed on both the BSE and NSE.

The IPO is structured as a book-built issue, featuring a fresh issue of 38,680,000 shares along with an OFS where promoters will sell 5,268,000 shares, each with a face value of INR 10. Promoters participating in the OFS include Sanjay Jain, Manish Jain, Ritu Jain, and Sachi Jain.

Prior to the IPO, Enviro Infra secured INR 194.7 crore from anchor investors by allocating 1.31 crore equity shares at INR 148 each. The anchor book includes prominent names such as Quant Mutual Fund, Motilal Oswal Mutual Fund, Abakkus Diversified Alpha Fund, LIC Mutual Fund, Singularity Equity Fund, Finavenue Capital Trust, Nuvama, NAV Capital VCC, Smart Horizon Opportunity Fund, and Vijit Growth Fund.

Investors can bid for a minimum of 101 shares and in multiples thereafter. A retail investor would need at least INR 14,948 to participate in one lot of 101 shares. For a maximum investment of under INR 200,000, a retail investor can bid for up to 1,313 shares, or 13 lots.

The subscription window for the Enviro Infra Engineers IPO will close on Tuesday, November 26, 2024. The basis of allotment is expected to be finalized on Wednesday, November 27, 2024, with shares credited to demat accounts on Thursday, November 28, 2024. The company's shares are anticipated to debut on the stock exchanges on Friday, November 29, 2024.

The proceeds from the Offer for Sale will go to the selling shareholders and will not be included in the Fresh Issue proceeds, as outlined in the Red Herring Prospectus (RHP). In the RHP, Enviro Infra Engineers stated that it plans to use the funds from the Fresh Issue to meet working capital needs, inject capital into its subsidiary, EIEL Mathura Infra Engineers, for a 60 MLD Sewage Treatment Plant (STP) under the 'Mathura Sewerage Scheme' in Uttar Pradesh, repay certain outstanding loans, pursue unidentified acquisitions for inorganic growth, and for general corporate purposes.

Bigshare Services is the registrar for the public offering, while Hem Securities serves as the sole book-running lead manager.

Founded in 2009 and based in Delhi, Enviro Infra Engineers (EIEL) is a prominent engineering firm specializing in the design, construction, and maintenance of water and wastewater treatment solutions. The company operates across India, utilizing its advanced capabilities to execute projects that adhere to strict regulatory and environmental standards while ensuring long-term operational efficiency and resource conservation.

EIEL participates in tenders issued by state governments and urban local bodies for developing wastewater treatment plants (WWTPs) and water supply and sanitation projects (WSSPs) on an EPC or Hybrid Annuity Model basis. As of June 30, 2024, the company has successfully completed 28 WWTPs and WSSPs over the past seven years, including 22 projects with capacities of 10 MLD and above.

According to the RHP, Enviro Infra Engineers' net profit attributable to owners surged to INR 110.54 crore in FY24, a 110% increase from INR 54.97 crore in FY23 and a 219% rise from INR 35.55 crore in FY22. The company's revenue from operations reached INR 738 crore, up 116% from INR 341.66 crore in FY23 and 227% from INR 225.62 crore in FY22. Despite challenges such as dependence on government contracts and high working capital requirements, EIEL's robust financial performance and strategic growth focus position it for ongoing success.

Enviro Infra Engineers Limited's IPO marks a significant step in its growth trajectory, reflecting the company's strong market position and robust financial performance. With substantial backing from anchor investors and a clear strategy for utilizing the funds raised, the IPO is poised to attract considerable interest from retail investors. As the company prepares for its stock market debut on November 29, 2024, stakeholders will be keenly watching its performance and the impact of its strategic initiatives on long-term operational success.