Enviro Infra shares snap 3-day gains, dive 10% today; here's the trigger

Recently-listed Enviro Infra Engineers Ltd shares tumbled in Wednesday's trade, pausing their three-day upward run. The stock slumped 10 per cent to hit its lower circuit level of Rs 342.45. At this price, it has still delivered multibagger returns to investors by rallying 131.39 per cent compared to the issue price of Rs 148.

Bourses BSE and NSE has revised the counter's trading price band limit from 20 per cent to 10 per cent. In addition, the water supply management firm is set to announce its maiden quarterly results after listing today.

Around 17.01 lakh shares changed hands on BSE at the time of writing this story. The figure was lower than the two-week average volume of 24.85 lakh shares. Turnover on the counter came at Rs 60.43 crore, commanding a market capitalisation (m-cap) of Rs 6,011.02 crore. There were 11,58,262 sell orders against buy order of nil shares.

The initial public offering (IPO) of Enviro Infra Engineers received strong response, with an oversubscription of 89.90 times. The initial share sale, which concluded on November 26, consisted of a fresh issue of 3.87 crore equity shares and an offer-for-sale of 52.68 lakh shares by the promoters.

According to the company's pre-IPO documents, total income for the nine-month period ending December 31, 2023, was Rs 4,285 crore. In fiscal 2023, it reported a revenue of Rs 3,381 crore, a significant jump from Rs 2,235 crore in the previous year.

The company posted a profit of Rs 550 crore in fiscal 2023 compared to Rs 345 crore in fiscal 2022. However, it had posted a loss of Rs 86 crore in fiscal 2021.

Enviro Infra is primarily engaged in designing, building, operating, and maintaining water and wastewater treatment plants. It focuses on zero-liquid discharge-compliant treatment processes, ensuring treated water can be reused for purposes such as horticulture, washing, refrigeration, and industrial processes.

Over the last seven years, Enviro Infra has completed 26 wastewater treatment and water and sanitation projects across India. These include 20 large-scale projects with a capacity of 10 MLD (million litres per day) or more.

As on November 27, 2024, promoters held a 70.02 per cent stake in the company.