Shares of Enviro Infra Engineers are set to kick-off its innings at Dalal Street on Friday, November 29. The water treatment player is likely to deliver a healthy listing pop to investors on its debut, if one goes by the latest signals from the grey market, where its premium has been marching higher.
The company is seen to turn up as an exception among the muted debuts. Ahead of its debut, the grey market premium (GMP) for Enviro Infra Engineers shares stood at Rs 55-60, suggesting up to a 40 per cent gains for the investors on debut. However, the GMP in the unofficial market stood at Rs 45-50 a day ago.
Enviro Infra Engineers is gearing up for a strong stock market debut after witnessing an overwhelming response, indicating strong investor confidence., said Shivani Nyati, Head of Wealth at Swastika Investmart. Given the strong investor interest, robust fundamentals, and positive market sentiment, it is expected to list with a significant premium of around 35 per cent, she said.
"However, the actual listing performance could be influenced by broader market conditions. Long-term performance will depend on the company's ability to execute projects efficiently, manage costs, and adapt to evolving industry dynamics," Nyati added.
Enviro Infra Engineers sold its IPO in the price band of Rs 140-148 with a lot size of 101 shares. The issue was open for bidding between November 22 and November 26. The New Delhi-based company raised Rs 650.30 crore via IPO, which includes a fresh share sale of Rs 572.46 crore, and an offer-for-sale (OFS) of up to 52.68 lakh equity shares.
The issue of Enviro Infra was overall subscribed 89.90 times, thanks to strong demand from all categories. The allocation for qualified institutional bidders (QIBs) was booked 157.05 times, while the quota for non-institutional investors (NIIs) saw bids for 153.80 times. The portions for employees and retail investors were subscribed 37.77 times and 24.48 times, respectively.
Enviro Infra Engineers (EIEL) is expected to make a strong debut on the stock market, reflecting robust investor interest, as evidenced by the subscription rate of 89.90 times, said Akriti Mehrotra, Research Analyst at StoxBox. The company operates in India's rapidly growing water and wastewater treatment sector, she said.
"Despite risks such as reliance on government contracts and high working capital requirements, EIEL’s strong financial performance and growth strategies position it for continued success. Therefore, we recommend that investors who have been allotted shares hold their positions from a medium to long-term perspective," Mehrotra adds.
Established in 2009, Enviro Infra Engineers is engaged in the design, construction, operation, and maintenance of water and Waste-Water Treatment Plants (WWTPs) and water supply projects (WSSPs) for government agencies/entities, along with pumping stations and the laying of pipelines for water supply.
Brokerages had positive views on the issue suggesting investors to subscribe to it. Hem Securities was the sole book running lead manager of the Enviro Infra Engineers IPO, while Bigshare Services served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.