Enviro Infra Engineers Limited is engaged in the design, construction, operation, and maintenance of water and Waste-Water Treatment Plants (WWTPs) and water supply projects (WSSPs) for government agencies/entities. Enviro Infra Engineers IPO mulls to raise 650.43 crores. The issue is a combination of fresh issue aggregating to Rs 572.46 crores and offer for sale aggregating to Rs 77.97 crores.
| IPO opens | November 22, 2024 |
| IPO Closes | November 26, 2024 |
| IPO Size (Rs.) | ₹650.43 Cr |
| Breakup | Fresh issue ₹572.46 Cr + OFS ₹77.97 Cr |
| Face Value: | ₹ 10 |
| IPO Price in Rs : | ₹140 to ₹148 per share |
| Minimum Lot | 101 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~75 % |
| NII Quota | ~15% |
| Retail Quota | ~10% |
| BRLM | Hem Securities Limited |
| Registrar | Bigshare Services Pvt Ltd |
About Enviro Infra Engineers :
- Enviro Infra Engineers Limited was established in 2009 and is engaged in the design, construction, operation, and maintenance of water and Waste-Water Treatment Plants (WWTPs) and water supply projects (WSSPs).
- Its clients largely include government entities or agencies.
- By June 30, 2024, the company had effectively built 28 WWTPs and WSSPs in India over the past seven years, with 22 of them having a capacity of 10 MLD or more.
- As at June 30, 2024, there are 21 WWTPs and WSSPs in the company’s order book with a total worth of ₹1,90,628.06 lakhs.
- .Sanjay Jain, Manish Jain, Ritu Jain, and Shachi Jain are the company’s promoters.
Financials :Enviro Infra Engineers IPO
| Financial Details (₹ In Cr) | 2024 (03) | 2024 (12) | 2023 (12) | 2022 (12) |
| Revenue from Operations | 205.18 | 728.92 | 338.1 | 223.53 |
| Revenue Growth (%) | – | 115.59 | 51.26 | – |
| EBITDA | 51.28 | 169.32 | 81.69 | 50.02 |
| EBITDA Margin (%) | 24.99% | 23.23% | 24.16% | 22.38% |
| Restated PAT | 29.97 | 108.57 | 55.34 | 34.55 |
| Net Profit (%) | 15.00% | 15.17% | 16.26% | 15.46% |
| Share Capital | 136.85 | 136.85 | 25.62 | 2.44 |
| Net Worth as stated | 323 | 292.18 | 126.51 | 71.62 |
| Total Borrowings | 305.59 | 233.59 | 64.54 | 18.11 |
| NAV (₹) | 23.6 | 21.48 | 9.88 | 5.59 |
| Post issue Share Capital | 175.5 | |||
| FV | 10.0 | |||
| IPO price | 148.0 | |||
| EPS Fy24 | 6.2 | |||
| PE | 23.9 | |||
| EPS Fy25 (annualized) | 6.8 | |||
| PE (annualized) | 21.7 | |||
| Market cap in cr. | 2,597 | |||
| Market cap / Sales | 3.56 |
Anchor:
The anchor investors includes Quant Mutual Fund, Motilal Oswal Mutual Fund, Abakkus Fund, Singularity, Winro Commercial India, Meru Investments, Life Insurance Corporation of India, Nuvama Mutual Fund, etc.30.82 % of the allocation to anchor investors was allocated to three domestic mutual funds through a total of six schemes.
Salient Points: Enviro Infra Engineers IPO
- From the net proceeds of IPO, Rs 181 crore will be used to meet the working capital requirements, Rs 100 crore will be used for payment of debt, Rs 30 crore will be infused into the company’s subsidiary, EIEL Mathura Infra Engineers, to build 60 million litres per day Sewage Treatment Plant (STP) at Mathura in Uttar Pradesh.
- Clients:
- They have a diversified orderbook of projects across India: They are executing diverse projects like WWTPs including CETPs, STPs & SS and WSSPs, both on EPC as well as on HAM basis, with Order Book of 21 WWTPs and WSSPs for aggregate value of 1906 cr.
- As of June 30, 2024, the company’s debt equity ratio was 0.95.
- Enviro Infra Engineers Ltd, valued at P/E multiple of 23.9x respectively of its FY24 earnings on post issue capital.
- Peers: company’s listed peers are EMS Ltd (with a P/E of 23.9), ION Exchange Ltd (PE 43.1), Va Tech Wabag Ltd ( P/E of 40.7), and Vishnu Prakash R Punglia Ltd (P/E of 26.9).
- Order book provides healthy revenue visibility: As of Jun’24, the company has an order book of Rs. 1,906.3 cr which is 2.6x of its FY24 revenue and thus offers healthy revenue visibility. In HAM orders, government grants comprised of 40% of project costs while the rests are paid as an annuity over 15 year.
- Company has shown consistent financial performance over the years.
- Revenue has grown at a CAGR of 81% from ₹ 223.53 Cr in FY 2022 to ₹ 728.92 Cr in FY 2024.
- PAT for this period has also grown at a CAGR of 79% from ₹ 34.55 Cr in the FY 2022 to ₹ 110.54 Cr in FY 2024.
- I will apply in Enviro Infra Engineers IPO for sure. They have clocked one of the best EBITDA margins of more than 20% in the sector. This can be attributed in-house project execution. They compare well with peers like Va Tech Wabag, EMS Ltd, Vishnu Prakash R Punglia Ltd, the issue appears to be fairly priced. growth prospects look excellent.
- 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.