Denta Water and Infra Solutions Limited is a Karnataka focused water and infrastructure solutions company engaged in designing, installing, and commissioning water management infrastructure projects with expertise in groundwater recharge projects. Denta Water IPO is a book built issue of Rs 220.50 crores and is entirely a fresh issue of shares.
IPO opens
January 20, 2025
IPO Closes
January 22, 2025
IPO Size (Rs.)
₹220.50 Cr
Breakup
Fresh issue ony
Face Value:
₹ 10
IPO Price in Rs :
₹279 to ₹294 per share
Minimum Lot
50 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
Smc Capitals Limited
Registrar
Integrated Registry Management Services
About Denta Water and Infra Solutions Limited
Denta Water and Infra Solutions Limited is a growing water and infrastructure solutions company engaged in designing, installing, and commissioning water management infrastructure projects with expertise in groundwater recharge projects.
Their Services Encompass:
Water Infrastructure Management: Implementing comprehensive solution for water infrastructure management in various settings.
Groundwater Recharging: Developing innovative strategies to recharge aquifers, ensuring long-term water sustainability.
It also undertakes the operations and maintenance of water management infrastructure projects for a specific contractual period. In addition, Denta also undertakes construction projects in the field of railways and highways. Denta is one of the few companies in India having experience and expertise in design, installation, commissioning, operations and maintenance of ground water recharging using recycled water.
Sowbhagyamma, Sujith TR, C Mruthyunjaya Swamy and Hema HM are the promoters of the company.
Financials : Denta Water and Infra Solutions Limited
Metric
66FY25
2024
2023
2022
Revenue from Operations
97.78
238.6
174.32
119.57
Total Income
98.51
241.84
175.75
119.64
Operating EBITDA
32.77
79.14
66.96
51.81
Operating EBITDA Margin (%)
33.51
33.17
38.41
43.33
Profit After Tax (PAT)
24.2
59.73
50.11
38.34
PAT Margin (%)
24.75
25.03
28.75
32.06
Net Worth
188.46
164.26
104.55
54.43
ROE(%)
12.84
36.36
47.93
70.43
ROCE(%)
18.96
76.99
95.98
126.6
Post issue Share Capital
26.7
FV
10
IPO price
294
EPS Fy24
22.37
PE
13.14
EPS Fy25 (annualized)
18.13
PE (annualized)
16.22
Market cap in cr.
785
Market cap / Sales
3.29
Anchors: Denta Water IPO
Salient Points:Denta Water IPO
Use of Net procceds of Rs. 138 c
Working Capital Needs: ₹150 crore.
General Corporate Purposes.
Revenue Breakup :
Water management ~93%,
Roads ~2%
Railway ~2%,
Others ~3%
Company has successfully executed major projects like Byrapura, Hiremagaluru LIS, and KC Valley pertaining to Bengaluru’s wastewater management and by supporting the Government’s Jal Jeevan Mission. The first phase of the KC Valley project in Bengaluru has led to its becoming the 2nd city globally in terms of treated wastewater quantity.
As on November 30th 2024, Denta Water has completed 32 projects in water management infrastructure.
It has 17 ongoing projects amounting to total contract value of Rs. 11,004 Million , Out of these, Rs. 10,667 million are water management projects.
Its outstanding order book as of Nov 24 is ₹7,524 million
Recently they purchased 98 acres of land which has naturally grown crops of coffee, pepper, cardamom in Madikeri district in Karnataka. It is currently carrying out agricultural activities on this land.
Company owns another property in Udupi district which has been developed as homestay /resort. The property is beach facing property having 21 fully furnished rooms.
Peers
Companies
Revenue cr.
EBITDA Margin
PAT Margin
P/E
Mcap/sales
D/E Ratio
Denta Water (FY 24)
238.59
33.51%
24.75%
13.14
3.29
0
VA Tech Wabag (TTM)
2,965
13%
8.96 %
33.2
2.91
0.22
EMS (TTM)
885
26.4 %
19.4 %
26
5.04
0.09
PE FY25 (annualized): 16.22x ; PE Fy24 – 13.14x
Karnataka State Government is their major customer, contributing 84% of H1FY25 revenue.
It is expected that second half is generally better compared to first half.
I intend to apply in Denta Water IPO.. Valuation being demanded are reasonable going by company’s financial statements. There are concern regarding quality of promoters, some ED investigations and any possible political connections in the state. Overall it compares favorably with peers with better margins.
GMP as per social media ruled about Rs. 137 (47%)
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
