Concord Enviro Systems Limited IPO

Last Updated on October 12, 2023 by BFSLTeam BFSLTeam

Concord Enviro Systems Limited is an integrated solution provider for wastewater treatment and reuse. This company also offers zero liquid discharge solutions to industries. According to a report by Frost and Sullivan, this company is India’s second-largest industrial wastewater recycle and reuse solution provider for FY 2021. 

Recently SEBI showed a green signal to this company’s plan to go public as stated in its DRHP. With this, the company is preparing to raise Rs. 1,750 million with a fresh issue of shares in the upcoming Concord Enviro Systems Limited IPO.

Keep reading to know the important insights about this company from its DRHP.

About the Company

Concord Enviro Systems Private Limited provides solutions for treating industrial wastewater. The company focuses on solutions to reuse and reduce liquid discharges. For this, it focuses on designing, installing, commissioning, operating and maintaining advanced technology like the Internet of Things and analysis of customer data.

The company uses pay-per-use or pay-as-you-treat models to provide water treatment solutions to customers. These models have payment structures on a rental basis ensuring affordability over large one-time transactions. The company integrates its custom designs which include effluent treatment plants, ultra-filtration, non-filtration, membrane-based systems and water heat evaporators.

This company hosts an in-house R&D team which analyses and builds industry-specific membranes. By March 2022, Concord Enviro Systems received three patents for these systems and it still has a few patent applications due. The company has a prominent domestic and global footprint with supplies and manufacturing units scattered in important cities around the world.  There are two manufacturing units, one of which is in Vasai in Maharashtra and the other is in Sharjah.

In terms of finances, this company’s total income grew from Rs. 3,000.93 million in FY 2019 to Rs. 3,528.83 million in FY 2021. This company’s profit after tax deductions also witnessed a slight increase from Rs. 158.52 million in FY 2019 to Rs. 198.12 million in FY 2021. 

IPO Details and Objectives

Concord Enviro Systems Private Limited filed its DRHP with the proposal to launch an IPO on June 30, 2022. The company aims to raise approximately Rs. 1,750 million by offering equity shares via a fresh issue.

The net proceeds that Concord Enviro Systems Ltd earns from its fresh issuance will be invested in its subsidiary, Concord Enviro FZE. The company also plans to use some amount to finance the construction of an assembly unit in the Sharjah International Airport Free Zone with the funds raised from the public issue.

In addition to its fresh issue, this company will put up 35,69,180 equity shares as an Offer for Sale. The selling shareholders participating in this OFS are Namrata Goel, Prayas Goel, AF Holdings, Prerak Goel, Pushpa Goel, and Nidhi Goel. The company along with the Book-Running Lead Managers have announced the face value of IPO shares as Rs. 5 per share.

Concord Enviro Systems Limited is yet to declare the issue price, lot size, minimum investment amount and other details for its upcoming IPO launch. The IPO will be a complete book-built issue. This means, as an investor, you can only place bids worth at par or above the floor price.

Also Read: How does an IPO work?

Strengths

Here are a few notable competitive strengths of Concord Enviro Systems Limited:

• This company is rightly positioned in the market to capitalise on the booming requirement for wastewater management and zero liquid discharge. Reasons like growing fresh water scarcity, and water supply from traditional sources being more expensive than reused water are driving forces in this field.
• Concord Enviro Systems Limited is an integrated provider of solutions with the assistance of backward integrated manufacturing facilities.
• This company hosts a diverse customer base across industries and geographical locations. Some of the major industries that it serves are defence, pharmaceuticals, food and beverages, chemicals and the textile industry.
• The company integrates and focuses on the use of IoT to catalyse its growth.
• Concord Enviro Systems Limited’s financial metrics have been quite impressive for the last few years and represent healthy growth for the company.
• An excellent and professional team of promoters and management team runs this company.

Risks Associated

Besides the above strengths, you must also keep the following risks in mind before investing in the Concord Enviro Systems Limited IPO.

• Concord Enviro Systems Limited’s business highly relies on the operations in its manufacturing facilities. This exposes the company to certain risks such as industrial accidents, pandemics, natural disasters or breakdown or failure of any machinery. These incidents can hinder the quality and quantity of production which can eventually slow down delivery and impact the operation and cash flow. 
• The present contracts in this company’s order books run the risk of being cancelled or changed at any time by the customers. Thus, this order book doesn’t stand as an indicator of this company’s success. 

Also Read: IPO investment strategy

Summary

Like all equity and equity-related investments, the upcoming Concord Enviro Systems Limited IPO also presents some risks to investors. However, by comparing the risks with strengths and the company’s past performance, you can make a balanced investment decision. IPOs present unique opportunities to capitalise on new investment options for profits.

If you are wondering how to invest in Concord Enviro Systems Limited IPO, browse our website for quick steps. Furthermore, you can also register on our platform to open a Demat and trading account and start your investment journey with IPOs. 

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