The IPO of Enviro Infra Engineers enters day 2 on a strong note, as all categories of investors evinced big interest on day 1 of the issue opening. The initial public offering was subscribed twice on Day 1 itself, as the QIB portion was subscribed 2 times, HNIs 3 times, retail investors 1,70 times, and employees 3.17 times.
Enviro Infra Engineers’ initial public offering, which has a price band of ₹140-148, received bids for about 6.39 crore shares against 3.08 crore shares on offer. The IPO closes on Tuesday, and the market lot 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 15 per cent for non-institutional investors. The company also has a reservation for employees, who will get a discount of ₹13 a share on the IPO price.
Anchor investors
Enviro Infra on Thursday raised around ₹195 crore from anchor investors as part of the IPO process. 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.
Utility of funds
Proceeds from the fresh issue, totalling ₹181 crore, will be used to meet the working capital requirements, ₹100 crore will be used to pay debt, ₹30 crore will be infused into the company’s subsidiary, EIEL Mathura Infra Engineers, to build a 60 million litres per day Sewage Treatment Plant (STP) at Mathura in Uttar Pradesh. A portion will also be used for general corporate purposes.
About Enviro
Enviro Infra Engineers designs, constructs, operates and maintains water and wastewater treatment plants and water supply scheme projects for government authorities/bodies. The treatment process installed by the company at most 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 company’s equity shares are expected to be listed on the BSE and NSE.