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The initial public offering of Enviro Infra Engineers opens to public today for bidding. The company, which is involved in the development of turnkey projects of sewage treatment plants and sewerage system, has fixed the price band as ₹140-148 and the minimum lot size is 101 shares.
The ₹650.43-crore initial share sale is a combination of fresh issue worth ₹572.46 crore and an offer for sale (OFS) of ₹77.97 crore. Promoters will offload 52.68 lakh shares in the OFS. Currently, promoters hold over 93 per cent stake in Enviro Infra Engineers.
Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. The company has also a reservation for employees, who will get a discount of ₹13 a share on IPO price.
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As part of IPO process, Enviro Infra on Thursday collected around ₹195 crore from anchor investors. Quant Mutual Fund, Motilal Oswal Mutual Fund, LIC Mutual Fund, Abakkus Diversified Alpha Fund-2, Singularity Equity Fund I and Meru Investment Fund PCC Cell 1 are among the anchor investors, according to a circular uploaded on BSE’s website.
The company has allotted over 1.31 crore shares to 22 funds at ₹148 apiece.
Proceeds from the fresh issue to the tune of ₹181 crore will be used to meet the working capital requirements, ₹100 crore will be used for payment of debt, ₹30 crore will be infused into the company’s subsidiary, EIEL Mathura Infra Engineers, to build 60 million litres per day Sewage Treatment Plant (STP) at Mathura in Uttar Pradesh. Besides, a portion will be used for general corporate purposes.
Enviro Infra Engineers is engaged in designing, construction, operation and maintenance of water and wastewater treatment plants and water supply scheme projects for government authorities/bodies. The treatment process installed by the company at most of the STPs is zero liquid discharge-compliant and the treated water can be used for horticulture, washing, refrigeration and other process industries.
Hem Securities is the sole book-running lead manager of the public issue. The equity shares of the company are expected to be listed on the BSE and NSE .
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