The initial public offering (IPO) of Denta Water and Infra Solutions Ltd saw strong participation from investors on the first day (Day 1) of bidding process. According to BSE data available on Wednesday, the issue was booked 3.67 times at 11:15 am on Day 1. The initial share sale received bids for 1,92,84,450 shares against 52,50,000 shares on offer.
The portion for non-institutional investors (NIIs) received 5.91 times subscription and the category kept for retail investors fetched 4.81x subscription. The qualified institutional buyers (QIBs) quota is yet to see a response.
The IPO, set to conclude on Friday (January 24), aims to raise Rs 220.50 crore through a fresh issue of 75 lakh shares. The price band for the IPO has been fixed at Rs 279-294 per share with retail investors required to invest a minimum of Rs 14,700 for a single lot. The minimum lot size for an application is 50.
Incorporated in 2016, the Bengaluru-based Denta Water is a growing water and infrastructure solutions company engaged in designing, installing and commissioning water management infrastructure projects with expertise in groundwater recharge projects.
The company said net proceeds from the issue would be utilised to meet working capital requirements and general corporate purposes. It raised Rs 66.15 crore from anchor investors ahead of its IPO.
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The grey market premium of Denta Water witnessed a sharp uptick following strong demand for the issue on Day 1. Last checked, the stock was seen at Rs 459 in the unofficial market, suggesting listing gains of more than 56 per cent for the investors.
SMC Capitals is the book-running lead manager of the Denta Water IPO, while Integrated Registry Management Services is the registrar. Shares of the company would be listed on both BSE and NSE. January 29 is the tentative listing date.
Denta Water posted a net profit of Rs 24.2 crore and revenue of Rs 98.51 crore for the six-month period ended on September 30, 2024. The company's net profit came in at Rs 59.73 crore with a revenue of Rs 241.84 crore for the financial year 2023-24. The company would command a total market capitalisation (m-cap) of about Rs 785 crore.