Shares of Denta Water and Infra Solutions are set to make their Dalal Street debut on Wednesday, January 29. The company after a prolonged delay in the IPO allotment is likely to have a soft landing at the bourses later today, if one goes by the current signals from the grey market, where it has been consistently losing its ground.
Ahead of its listing, the grey market premium (GMP) of Denta Water and Infra Solutions has seen a sharp correction, despite the strong demand for the issue. Last heard, the company was commanding a premium of Rs 65-70 in the unofficial market, suggesting a listing gains of about 22-24 per cent for the investors. However, the GMP stood around Rs 150-160 on the first day of bidding.
The Denta Water and Infra Solutions IPO generated a significant investor interest, with a strong subscription of 221 times and a good GMP of 30 per cent, said Shivani Nyati, Head of Wealth at Swastika Investmart. "Given the financial performance and the potential risks, this IPO may be considered for listing gains as well as the long-term investment horizon," she adds.
The IPO of Bengaluru-based Denta Water and Infra Solutions ran for bidding between January 22 and January 24. It had offered its shares in the price band of Rs 279-294 per share with a lot size of 50 shares. The company raised a total of Rs 220.50 crore via IPO, which was entirely a fresh share sale of up to 75,00,000 equity shares.
The issue was overall subscribed a solid 221.68 times, attracting bids for 1,16,31,09,250 equity shares amounting to Rs 34,195.41 crore. The allocation for the non-institutional investors (NIIs) was subscribed a stellar 507.27 times. The portion reserved for qualified institutional bidders (QIBs) was booked 236.94 times. However, the portion allocated for retail investors was subscribed 90.56 times.
Denta Water and Infra Solutions is set for a strong market debut, anticipated to list with a decent premium of around 35 per cent, said Akriti Mehrotra, Research Analyst at StoxBox.
"Overall, Denta Water’s strategic focus on water management projects, expanding market opportunities, and robust order book position it for continued growth in the water management and infrastructure sectors. Investors who have been allocated shares are advised to hold their positions with a medium- to long-term outlook," she said.
Incorporated in 2016, Bengaluru-based Denta Water and Infra Solutions 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 has experience in water engineering and EPC services.
SMC Capitals was the book running lead manager of the Denta Water and Infra Solutions IPO, while Integrated Registry Management Services enacted as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on January 29, Wednesday.