Enviro Infra Engineers stock declined after a stellar debut on NSE and BSE today. The stock listed on the NSE at ₹220, a 49 per cent premium over the IPO price of ₹148. On the BSE, the stock debuted at ₹218, a premium of 47 per cent.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, commented on the stellar debut, “This outstanding performance was driven by the company’s strong fundamentals, strong investor interest (89.9 times subscribed), and the positive sentiment surrounding the water and wastewater treatment sector.”
“While the initial listing is promising, long-term success will depend on Enviro Infra’s ability to capitalise on its growth opportunities and deliver strong financial performance. But, as of now, investors may hold their position by keeping a stoploss at around 200.”
Nyati also cautioned that investors should remain cautious and monitor the company’s performance closely, considering factors such as project execution risks, regulatory changes, and competition in the sector.
Shares of Enviro Infra were down 3.10 per cent on the NSE at ₹213.18 at around 11.53 am. The stock touched an intra-day high of ₹233.70 at the time of writing.
IPO details
The ₹650.43-crore IPO received an overwhelming response from all categories of investors, with an overall subscription of 89.90 times, QIBs subscribed 157.05 times, NIIs 153.80 times, retail portion 24.48 times and employees 37.77 times.
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. The company raised around ₹195 crore from anchor investors. Hem Securities was the sole book-running lead manager of the public issue.
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.