Concord Enviro Ltd: IPO Overview and Subscription Details– All You Need to Know
Company Overview
Concord Enviro IPO is a book built issue of Rs 500.33 crores. The issue is a combination of fresh issue of 0.25 crore shares aggregating to Rs 175.00 crores and offer for sale of 0.46 crore shares aggregating to Rs 325.33 crores.
About Concord Enviro System Limited
Concord Enviro Systems Limited was incorporated in July 1999 and engaged in the business of water provider and wastewater reuse with the advanced technology zero-liquid discharge (ZLD). Due to giving more importance to customer satisfaction and building strong and long relationships, now they have around 353 domestic and 24 international customers, including various industries such as pharmaceuticals, chemicals, food and beverage, defense and energy, automotive and auto ancillaries, steel, and textiles. Additionally, the company has a broad global reach, exporting to regions including North America, Latin America, Africa, the Middle East, and Southeast Asia. It is noticeable that the company’s revenue has increased from 2022 to 2024, raising INR 329.37 crores to INR 496.86 crores, and the net income of 2024 is also satisfactory at INR 41.44 crores. Further, this company works in two countries with two manufacturing facilities, one in Vasai, Maharashtra, India, and the other in Sharjah, UAE.
IPO Subscription Period
- Open Date: December 19, 2024
- Close Date: December 23, 2024
- Allotment Date: December 24, 2024
- Listing Date: December 27, 2024
- Stock Exchanges: BSE and NSE
Pricing Details
- Price Band: ₹665 – ₹701 per Share
- Face Value: ₹5 per Share
- Minimum Lot Size: 21 shares
- Investment Requirement:
- Retail Investors: Minimum ₹14721 (21 shares)
- Small Non-Institutional Investors (sNII): 14 lots (249 shares) – ₹20604
- Big Non-Institutional Investors (bNII): 68 lots (1428 shares) – ₹1001028
Reservation Structure
- Qualified Institutional Buyers (QIB): 19.27% (1379122 shares)
- Non-Institutional Investors (NII): 15.24% (1090870 shares)
- Big NII (bNII): 10.16%
- Small NII (sNII): 5.08%
- Retail Investors: 35.57% (2545364 shares)
- Anchor Investors: 29.92% (2141195 shares)
Key Dates and Timeline
- IPO Open Date: December19, 2024
- IPO Close Date: December 23, 2024
- Basis of Allotment: December 24, 2024
- Initiation of Refunds: December 26, 2024
- Credit of Shares to Demat: December 26, 2024
- Listing Date: December 27, 2024
- Cut-off time for UPI mandate confirmation: 5 PM on December 23, 2024
Book Running Lead Managers
Concord Enviro Systems Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
- Motilal Oswal Investment Advisors Limited
- Equirus Capital Private Limited
Link Intime India Private Limited has been designated as the registrar for the IPO.
Promoter Information
- Promoter: The promoters of the company are Prayas Goel, and Prerak Goel.
- Shareholding:
- Pre-Issue: 60.93%
- Post-Issue: %
Financial Highlights
- Revenue: In FY22 revenue was ₹337 crores, in FY23 it was ₹350 crores and in FY24 it is ₹512 crores.
- Profit after Tax (PAT): PAT has increased year on year, FY23 ₹5.49 crores to in FY24 ₹41.44 crores.
- Net Worth: ₹320 crores
- Total Borrowing: ₹167 crores
Key Performance Indicators (KPIs):
- ROE: 13.73%
- RoNW: 12.92%
- P/BV: 3.96
- EPS (Pre-IPO): ₹22.77
- EPS (Post-IPO): ₹0.6
- P/E Ratio (Pre-IPO): 30.72x
- P/E Ratio (Post-IPO): 1171.2x
IPO Objectives
- Investment in the wholly owned Subsidiary, Concord Enviro FZE (“CEF”) for financing its capital expenditure requirements for the greenfield project to develop an assembly unit to assemble systems and plants for the treatment of water, wastewater and related membrane modules (the “U.A.E Project”);
- Investment in our wholly owned Subsidiary, Rochem Separation Systems (India) Private Limited (“RSSPL”), for financing its capital expenditure requirements for the brownfield project to expand the manufacturing facilities, storage and supporting activities (the “Vasai Project”);
- Funding capital expenditure requirements of the Company for the purchase of plant and machinery;
- Investment in our wholly owned Subsidiary, Concord Enviro FZE, for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by Concord Enviro FZE;
- Investment in the wholly owned Subsidiary, Concord Enviro FZE, for funding working capital requirements of Concord Enviro FZE;
- Investment in the joint venture, Reserve Enviro Private Limited, to grow our pay-per-use/pay-as-you-treat business.
Subscription Status (As of December 20, 2024)
- Retail: 1.96x
- QIB: 0.03x
- NII: 0.94x
- Overall Subscription: 1.2x
Recommendation
Concord Enviro Systems Ltd. Is in waste treatment segment, which has high expansion possibility in future and has high revenue generating capacity hence it is a really great company. But, its post IPO PE ratio is 1172 times which is really high and the grey market premium is also about 10% show less interest from public. It is a great investment if you get an attractive price, but only apply for minimal listing gain.