Enviro Infra Engineers Limited IPO

Last Updated on October 10, 2023 by BFSLTeam BFSLTeam

Enviro Infra Engineers Limited was incorporated in 2009 with the mission to make the earth a more clean and environment-friendly place to live in. This company’s major concern is the growing level of water pollution and its adverse effect on human health. To address this, it provides services like sewage treatment plants, water treatment plants and common effluent treatment plants. 

Enviro Infra Engineers Ltd. recently submitted its draft papers to SEBI on September 26, 2022, with the plan to go public. This document clearly states this company’s plan to issue 95 lakh shares as a fresh issue for its upcoming IPO.

To know more about the upcoming Enviro Infra Engineers Ltd. IPO, read till the end. 

About the Company 

Established in 2009, Enviro Infra Engineers Ltd. is a prominent business largely focussing on the operation and maintenance of Water and Wastewater Treatment Plants (WWTP) and Water Supply Schemes (WSSPs). This company undertakes various maintenance projects on behalf of government bodies.

Maintenance and operational works under WTTPs and WSSPs are partially funded by the Central Government. These projects are funded by government schemes like the Atal Mission for Rejuvenation and Urban Transformation and the National Mission for Clean Ganga. Similarly, Enviro Infra Engineers Pvt Ltd participates in water and waste management projects in rural areas for schemes like Jal Jeevan Mission.

WTTP projects comprise sewage treatment plants, common effluent treatment plants and sewage network schemes. Programmes under WSSP involve building water treatment plants along with pumping stations and the installation of pipelines to ensure proper water supply. The process complies with the Zero Liquid Discharge rule. You can use this treated water for washing, refrigeration and other industrial purposes.

This company employs an in-house team who look after all essential aspects of this business. This includes construction, designing and engineering. This makes Enviro Infra Engineers Pvt Ltd more self-reliant than other companies.

This firm also has 57 engineers who receive support from third-party consultants and industrial experts. They ensure that Enviro Infra Engineers Limited follows the quality standards set by the Central Government. It also has its own in-house team to undertake civil construction works to reduce dependence on third parties.

In terms of finances, Enviro Infra Engineering Private Limited Udaipur witnessed a growth in total income from Rs. 10,937.32 million in FY 2020 to Rs. 22,562.35 million in FY 2022. Its profit after tax margin has also been rising steadily from 4.84% in FY 2020 to 15.46% in FY 2022.

IPO Details and Objectives

Enviro Infra Engineers Limited submitted its Draft Red Herring Prospectus (DRHP) to SEBI in September 2022 with the plan to go public. According to its DRHP, this company plans to raise funds by selling 95,00,000 equity shares.

This company is offering shares via a fresh issuance only with no provisions for an Offer for Sale (OFS). The upcoming Enviro Infra Engineers Limited IPO shall be a complete book-built issue. This means, that after launching its IPO, this company shall accept bid prices higher or at par with the floor price. 

The company along with its underwriters have decided the face value as Rs. 10 per equity shares. Stakeholders of this company along with its Book-Running Lead Managers shall decide the IPO price band, lot size, total worth of shares and bid opening and closing dates in the forthcoming days. They shall announce these details a few days before the IPO launch date. 

The company plans to use its net proceeds from its IPO to meet working capital requirements of approximately Rs. 15,000 lakh. It will utilise the remaining amount for general corporate purposes and to meet IPO-related expenses.

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Also Read: IPO investment strategy

Strengths

The points below highlight the strengths of Enviro Infra Engineers Pvt Ltd that make this company stand out from its peers.

• This company hosts an in-house designing, engineering and execution team for smooth operation and less dependency on third parties. 
• Employees and teams under this firm follow the mentorship of experienced and professional promoters and senior management teams. 
• It focuses on the use of advanced technology to construct and install WWTPs and WSSPs.
• It also owns a robust order book of projects on a pan-India basis. 
• Enviro Infra Engineers Limited has a positive track record of strong execution capabilities and timely delivery of projects.        

Risks Associated

Besides the above strengths, you must be aware of the risk factors that tend to hinder the business of Enviro Infra Engineers Limited. This will allow you to make an informed decision regarding the upcoming Enviro Infra Engineers Limited IPO. Here are the notable risks:

• The company collaborates with the Central Government and state governments to earn revenue from contracts received from these bodies. Any kind of reduction of budget allocation might affect the number of projects that the Government or local bodies plan for a given period.
• It largely relies on in-house teams for designing, constructing and engineering projects. Any kind of loss of employees can reduce the bandwidth of this firm. This might impact the company’s workflow and finances significantly. 

Also Read: Risk of investing in IPO

Summary

As you go through the above details and plan your strategy for the upcoming Enviro Infra Engineers Limited IPO, consider prioritising your financial goals. It is also important for investors, both new and old to have a clear idea about their risk appetite before investing. This will help you know if this investment aligns with your goals or not. If yes, you are good to start your IPO investment journey with this company. 

Also Read: Benefits of Investing in IPO

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