Effwa Infra and Research Limited is engaged in EPC, and project management works related to water pollution and sewage related services. Effwa Infra and Research IPO envisages to garner Rs 51.27 crores. The issue is a combination of fresh issue aggregating to Rs 43.60 crores and offer for sale of Rs 7.68 crores.
IPO opens
July 05, 2024
IPO Closes
July 09, 2024
IPO Size (Rs.)
₹51.27 Cr
IPO Size (shares)
6,252,800 shares
Breakup
Fresh issue 43.60 Cr + OFS ₹7.68 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹78 to ₹82 per share
Minimum Lot
1600 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Shreni Shares Limited
Registrar
Bigshare
Market maker
Rikhav Securities
About Effwa Infra and Research :
Incorporated in the year 2011, at Thane, (Maharashtra)
“Effwa Infra & Research Limited”, (“EIRL”) is engaged in the business of engineering, consultancy, procurement, construction and integrated project management services in water pollution control, encompassing sewage and industrial effluent treatment, solid waste treatment and disposal, ventilation systems, hazardous waste management, and water treatment plants.
They also function as consultants and advisors, providing a range of services encompassing project organization, management, equipment procurement, funding, and project execution.
Their expertise spans the entire project lifecycle, from registration and design to implementation, supervision, and finalizing contract terms.
Dr. Varsha Subhash Kamal and Mr. Subhash Ramavtar Kamal are the company’s promoters.
Financials: Effwa Infra and Research IPO
Particulars/ Rs. Lacs
2023-24
2022-23
2021-22
Total Revenue
14,551.46
11,541.36
10,461.67
Profit after Tax
1,380.06
513.04
459.99
Share Capital
1,783.04
232.57
232.57
Net worth
3,715.05
2,355.89
1,842.85
Net Asset Value
20.84
13.21
10.34
Total borrowings
1,406.44
1,623.01
1,026.11
Post issue Share Capital
2315
FV
10.0
IPO price
82.0
EPS Fy23
2.2
PE Fy23
37.0
EPS Fy24
6.0
PE Fy24
13.8
Market cap in Lacs
18,983
Market cap / Sales
1.30
Anchors: Effwa Infra and Research IPO
Effwa Infra and Research IPO: Salient Points
The company has done over 45 water management infrastructure projects as on March 31, 2024.
The major portion of revenue for the financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 is from Government Institutions i.e., 46.57% and 43.02% and 52.28%. But they have clients across other segments as well.
Net proceeds use:
Sr. No
Particulars
Amount
1.
Funding working capital requirements of our company
3,300.00
2.
Funding of capital expenditure requirements of our Company towards purchase of new office Equipments
41.00
3.
General Corporate Purposes#
[●]
They generate major portion of sales from operations in certain geographical regions both Domestic and Export (Including Special Economic Zone).
Particulars
For the year ended
March 31, 2024
March 31, 2023
March 31, 2022
Value
In %
Value
In %
Value
In %
India (Domestic)
Andhra Pradesh
430.99
3.99
1,408.22
13.26
123.44
1.23
Chhattisgarh
0.22
0.00
491.60
4.63
508.31
5.08
Gujarat
924.32
8.55
3,332.59
31.38
3425.75
34.23
Madhya Pradesh
—
—
3.96
0.04
3.54
0.04
Maharashtra
3,102.46
28.71
1,970.21
18.55
1822.92
18.22
Odisha
1,427.14
13.21
3,385.75
31.88
3602.93
36.00
West Bengal
4,920.90
45.54
27.69
0.26
520.17
5.20
Rajasthan
—
—
—
—
—
—
Exports
Special Economic Zone
3,709.89
25.56
49.35
0.43
—
—
Tanzania
—-
—
840.21
7.30
429.62
4.12
Total
14,515.93
100.00
11,509.57
100.00
10,436.68
100.00
Peers
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RoNW(%)
Effwa Infra & Research
82
145.50
13.8
9.5%
13.8
1.3
45.46
VA Tech Wabag
1,316
2,856
250.00
8.8%
33.3
2.87
17.1
EMS Limited
677
793
153
19.3%
24.6
4.73
23.72
They derive significant portion of revenue from one of their services, Effluent Treatment Plant, which contributed 83.11%, 61.93% and 86.92% of revenue from operations for the financial year ended March 31, 2024, 2023 and 2022, respectively.
As of May 31, 2024, Order Book was ₹ 526 crore.
Effwa Infra and Research IPO is coming at a PE ratio of 13.8x (FY24 Earnings). Areas in which company operates i.e Infrastructure for the water management including the management of Effluent Treatment Plants (ETP), Sewage Treatment and Remediation (STP), Water Treatment and Distribution (WTP) and Hazardous Waste Management etc., hold good prospects.
I intend to apply in Effwa Infra and Research IPOsubject to availability of funds.
GMP as reported on social media has been Rs. 110 (135%)
The lead manager has a good track record.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
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.
