Shares of Enviro Infra Engineers will be listed at the bourses today. The company has fixed the price at ₹148, at the upper end of the IPO price band of ₹140-148. The ₹650.43-crore IPO of Enviro Infra Engineers received an overwhelming response from all categories of investors, with an overall subscription of 89.90 times. The offer also witnessed a revival in high-net-worth individuals’ interest, as previous IPOs had received only a muted response from them.
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The IPO received bids for 276.83 crore shares against 3.08 crore shares on offer. Leading the subscription table, institutional investors or QIBs subscribed 157.05 times their allotted quota, while HNIs bid 153.80 times, retail investors 24.48 times, and employees 37.77 times of their quota.
The grey market premium indicates that the stock is expected to list with a gain in the range of 35-40 per cent.
The IPO was a combination of a fresh issue (₹572.46 crore) and an offer-for-sale (₹77.97 crore). Promoters sold 52.68 lakh shares in the OFS.
Fund utilisation
As part of the IPO, Enviro Infra on Thursday raised around ₹195 crore from anchor investors. The company has allotted over 1.31 crore shares to 22 funds at ₹148 apiece. 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 were among the anchor investors.
Proceeds from the fresh issue, totalling ₹181 crore, will be used to meet working capital requirements; ₹100 crore will be used to pay debt; and ₹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) in Mathura, Uttar Pradesh. A portion will also be used for general corporate purposes.