Enviro Infra Engineers IPO sees strong demand, GMP at 35%

The IPO of Enviro Infra Engineers, a leading turnkey developer of water and wastewater projects, has sparked keen interest among those looking to invest in stocks. As of 10:48 AM on Monday, November 25, 2024, the offering was oversubscribed by 4.32 times, reflecting strong market demand.

Strong investor participation across categories

The IPO, which opened on Friday, November 22, 2024, saw the highest subscription from Non-Institutional Investors (NIIs), who oversubscribed their quota by 9.58 times. Retail investors and QIBs, or Qualified Institutional Buyers, also displayed keen interest, oversubscribing their categories by 3.34 times and 2.05 times, respectively, according to the National Stock Exchange (NSE).

Grey market premium boosts confidence

Industry sources indicate that Enviro Infra Engineers' unlisted shares are trading at a premium of ₹51 over the upper price band of ₹148. This represents a grey market premium (GMP) of 35.14%, reflecting optimistic investor sentiment ahead of the listing.

IPO details and timeline

The ₹650.43 crore IPO is priced between ₹140 and ₹148 per share, with a lot size of 101 shares. It includes a fresh issue of 3.87 crore equity shares and an OFS, or offer for sale, by the promoters of 52.68 lakh shares.

The IPO subscription window remains open until Tuesday, November 26, 2024. The basis of allotment will be finalised on Wednesday, November 27, 2024, and shares will be credited to demat accounts by Thursday, November 28, 2024. Enviro Infra Engineers' stock is expected to debut on the NSE and BSE on Friday, November 29, 2024.

Industry reviews

Analysts from the industry have largely given a positive outlook for Enviro Infra Engineers' IPO, citing its solid business model and growth potential.

Company overview

Enviro Infra Engineers specialises in water and wastewater treatment projects, primarily serving government agencies. The company is recognised for implementing zero-liquid-discharge compliant processes at many of its sewage treatment plants, enabling the reuse of treated water for industrial and environmental purposes.

Key takeaways

1. The IPO was oversubscribed by 4.32 times, with strong demand from NIIs, retail investors, and QIBs.
2. Grey market premium suggests a 35.14% rise over the upper price band.
3. The ₹650.43 crore issue includes fresh shares and an OFS.
4. The listing on NSE and BSE is slated for November 29, 2024.

Investors keen to invest in stocks are closely monitoring this IPO for its potential growth and strong market response.