Dive into the future of environmental innovation with Concord Enviro Systems Limited, a wastewater treatment solutions provider poised to make its market debut. This groundbreaking initial public offering (IPO) valued at ₹500.33 crores represents more than just a financial opportunity—it's an invitation to invest in critical environmental infrastructure. From December 19 to 23, 2024, investors can participate in a compelling offering that combines a fresh issue of 0.25 crore shares worth ₹175 crores and an offer for sale of 0.46 crore shares valued at ₹325.33 crores.
With a strategic price band of ₹665 to ₹701 per share and a user-friendly lot size of 21 shares, this IPO opens the door for retail investors with a minimum investment of ₹14,721. It's an accessible gateway to support cutting-edge water treatment technology and environmental sustainability. Mark your calendars for the share allotment on December 24, 2024, and the anticipated listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on December 27, 2024—your opportunity to be part of a cleaner, more sustainable future is just around the corner.
Concord Enviro Systems IPO is a fundraise worth ₹500.33 crores comprising fresh issue of 0.25 crore shares and offer for sale of 0.46 crore shares. The IPO will be available for subscription from December 19, 2024, to December 23, 2024, providing an opportunity for investors looking to gain a stake in the wastewater treatment segment.
| Concord Enviro Systems IPO Date | December 19, 2024 - December 23, 2024 |
| Price Band | ₹665 to ₹701 per share |
| Face Value | ₹5 per share |
| Lot Size | 21 shares |
| Issue Type | Book-built issue |
| Fresh Issue | 24,96,433 shares of ₹5 per share, amounting to ₹175 crores |
| Offer for Sale | 46,40,888 shares of ₹5 per share, amounting to ₹325.33 crores |
| Total Issue Size | 71,37,321 shares of ₹5 per share, amounting to ₹500.33 crores |
| Listing at | BSE, NSE |
| Share Holding Post Issue | 2,06,96,233 |
| Share Holding Pre Issue | 1,81,99,800 |
The Concord Enviro Systems IPO opens for subscription on December 19, 2024, and closes on December 23, 2024, with allotment slated for December 24, 2024.
| IPO Open Date | December 19, 2024 (Thursday) |
| IPO Close Date | December 23, 2024 (Monday) |
| Basis of Allotment | December 24, 2024 (Tuesday) |
| Initiation of Refunds | December 26, 2024 (Thursday) |
| Credit of Shares to Demat Account | December 26, 2024 (Thursday) |
| Listing Date on Exchanges | December 27, 2024 (Friday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 23, 2024 (Monday) |
Concord Enviro Systems Limited, founded in July 1999, is a pioneering global provider of water and wastewater treatment solutions, specializing in zero-liquid discharge (ZLD) technology. The company offers comprehensive, integrated solutions across the entire value chain, including design, manufacturing, installation, operation and maintenance, and digitalization through IoT. With a focus on energy optimization and recovery, Concord Enviro helps industries achieve water conservation and sustainability goals. Their business model encompasses manufacturing and selling water treatment systems, providing operations and maintenance services, supplying consumables and spare parts, and installing compressed biogas plants.
As of March 31, 2024, the company has established a robust global presence, exporting solutions to North America, Latin America, Africa, the Middle East, and Southeast Asia. With a diverse customer base of 377 clients worldwide, Concord Enviro has served 353 domestic and 24 international customers across industries including pharmaceuticals, chemicals, food and beverage, defense, automotive, steel, and textiles. Notable clients include Diageo Mexico Operaciones, Grasim Industries Limited, and LANXESS India Private Limited. The company operates two manufacturing facilities—one in Vasai, India, and another in Sharjah, UAE—and boasts an in-house R&D team of 21 employees dedicated to developing innovative water treatment solutions.
The net proceeds of the Fresh Issue will be utilized for multiple growth and expansion initiatives. These include investments in Concord Enviro FZE for a greenfield assembly project in the UAE, partial repayment of borrowings, and funding its working capital needs. The company will also invest in Rochem Separation Systems (India) Pvt. Ltd. for a brownfield expansion of its Vasai facilities and purchase of plant and machinery. Additionally, funds will be directed toward growing the pay-per-use business through its joint venture, Reserve Enviro Pvt. Ltd., and for technology upgrades, market expansion, and other growth initiatives. A portion of the proceeds will also be allocated for general corporate purposes.
The Concord Enviro Systems Limited IPO’s key performance indicators reflect the company's financial health, with a Return on Equity (RoE) of 13.73%, Return on Capital Employed (RoCE) of 14.07%, and Debt-to-Equity ratio of 0.47.
The Return on Net Worth (RoNW) stands at 12.92%, while the PAT Margin is 8.34. On an annual basis, the company's Profit After Tax (PAT) grew by 655% while the revenue increased by 46% in the financial year ending on March 31, 2024.
| Period Ended | August 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 208.02 | 512.27 | 350.50 | 337.57 |
| Assets | 640.09 | 627.68 | 592.22 | 536.90 |
| Net Worth | 319.71 | 320.82 | 279.23 | 266.81 |
| Profit After Tax | 0.52 | 41.44 | 5.49 | 16.48 |
| Reserves & Surplus | 300.59 | 303.90 | 258.64 | 261.12 |
| Total Borrowing | 167.53 | 153.19 | 131.06 | 125.76 |
Amount in ₹ crores
Concord Enviro has established itself as a market leader in Zero Liquid Discharge (ZLD) technology, particularly in India, with a strong global footprint. The company's unique positioning stems from its comprehensive, integrated solutions that span the entire value chain - from design and manufacturing to installation, operations, and maintenance. Its backward-integrated manufacturing facilities in Vasai, India, and Sharjah, UAE, provide a significant competitive advantage, enabling the company to offer end-to-end water conservation and sustainability solutions across multiple industries.
The company's strengths are further bolstered by its impressive global reach and diversified customer base. With 377 active customers spanning industries like pharmaceuticals, chemicals, food and beverages, automotive, and textiles, Concord Enviro has successfully penetrated international markets including North America, Latin America, Africa, the Middle East, and Southeast Asia. Its remarkable financial performance - with 46% revenue growth and a staggering 655% increase in profit after tax between FY 2023 and FY 2024 - demonstrates the company's strategic market expansion and efficient cost management capabilities.
The company faces several potential challenges that could impact its growth and stability. Economic sensitivity remains a significant concern, as slowdowns in industrial activity could directly affect the demand for wastewater solutions. The complexity of operating across multiple geographies introduces regulatory risks, potentially increasing compliance costs and operational challenges. Additionally, the wastewater treatment sector is increasingly competitive, with emerging players continuously entering the market and potentially eroding Concord Enviro's market share.
Another critical weakness is the company's heavy reliance on its top 20 customers, which could create revenue volatility. The risk of contract delays or cancellations, coupled with potential shortfalls in raw material supply, could disrupt the company's projected growth trajectory. Location-specific risks such as natural disasters might interrupt manufacturing operations, while the constant need for innovation means that a failure to develop new products could significantly impact future growth prospects. These challenges underscore the importance of continued strategic planning, diversification, and investment in research and development to maintain the company's competitive edge.
The Concord Enviro Systems Limited IPO presents an attractive opportunity for investors looking to tap into the growing wastewater treatment sector. While the potential for early investment appears promising, it is essential for investors to carefully analyze the company’s financial health, market position, and long-term growth prospects. Conducting thorough research and aligning this investment with individual financial goals and risk appetite can help turn this opportunity into a well-informed and strategic financial move.
What is the Concord Enviro Systems Limited IPO?
The Concord Enviro Systems Limited IPO is a main-board offering consisting of a fresh issue of 0.25 equity shares and an offer for sale of 0.46 crore shares with a face value of ₹5, aiming to raise a total of ₹500.33 crores. The share price is set between ₹665 and ₹701, with a minimum order quantity of 21 shares. This IPO will be open for subscription from December 19, 2024, to December 23, 2024. Link Intime India Private Limited is the registrar while Motilal Oswal Investment Advisors Limited and Equirus Capital Private Limited are the book-running lead managers.
When will the Concord Enviro Systems Limited IPO open?
The Concord Enviro Systems Limited IPO will open for subscription on December 19, 2024, and will close on December 23, 2024.
When is the Concord Enviro Systems Limited IPO listing date?
The tentative listing date for the Concord Enviro Systems Limited IPO is Friday, December 27, 2024.
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