Effwa Infra IPO details: fundamentals and financials

Effwa Infra & Research Limited is an engineering company specialising in water pollution control solutions. They offer a range of services including design, procurement, construction, and project management for wastewater treatment plants, solid waste management, and water treatment facilities. This blog dives into the details of the Effwa Infra IPO (Initial Public Offering) on the NSE SME platform.

Effwa Infra IPO: fundamentals

Before you decide whether this SME IPO is worth your IPO investment, let us have a look at the Effwa Infra IPO fundamentals.

• Issue Size: Rs 51.27 crores
• Fresh Issue: Rs 43.60 crores (53.17 lakh shares)
• Offer for Sale (OFS): Rs 7.68 crores (9.36 lakh shares)
• Price Band: ₹78 to ₹82 per share
• Open Date: July 5, 2024
• Close Date: July 9, 2024
• Allotment Date: July 10, 2024 (expected)
• Listing Date: July 12, 2024 (tentative) on NSE SME

About Effwa Infra & Research Limited

• Founded in 2014, Effwa Infra has a presence across several Indian states and has completed over 45 water management projects.
• Their services cater to public and private entities, including government bodies, municipal corporations, and private companies.
• They recently reported a 26% increase in revenue and a 169% jump in net profit (PAT) for the financial year ending March 31, 2024, compared to the previous year.

Effwa Infra IPO: highlights

• Focus on a Growing Sector: The water treatment and pollution control sector in India is expected to witness significant growth due to increasing environmental concerns and stricter regulations.
• Proven Track Record: Effwa Infra has a successful track record of completing projects for various clients.
• Financials on the Rise: The company's recent financial performance indicates growth potential.

Investment considerations

• SME Listing: This is an SME IPO, which generally carries higher risks compared to listings on the main NSE or BSE boards.
• Limited Track Record: As a relatively young company, Effwa Infra's long-term prospects might be less certain compared to established players.
• Lower Liquidity: SME stocks tend to have lower trading volumes, making it potentially difficult to buy or sell shares quickly.

Effwa Infra IPO: minimum investment

• Retail Investors: Minimum investment of ₹131,200 (1600 shares)
• HNI (High Net Worth Individuals): Minimum investment of ₹262,400 (2 lots of 3200 shares)

Conclusion

This blog is for informational purposes only and should not be considered financial advice. Before investing in any IPO, conduct thorough research, consult a qualified financial advisor, and carefully consider your risk tolerance and investment goals. For further details about the IPO, refer to the company's offer document and consult with a SEBI-registered financial advisor.