On Wednesday, January 29, Denta Water and Infra Solutions' shares made a spectacular debut, closing at ₹325 on the NSE, 10.54 percent higher than the issue price of ₹294. On the BSE, it made its debut at ₹330, which was 12.24% higher than its IPO price.
IPO listing for Denta Water and Infra Solutions: On Wednesday, January 29, Denta Water and Infra Solutions' shares made a spectacular debut, closing at ₹325 on the NSE, 10.54 percent higher than the issue price of ₹294. On the BSE, it made its debut at ₹330, which was 12.24% higher than its IPO price.The subscription period for Denta Water's ₹220.50 crore initial public offering (IPO) was January 22–24. The IPO price range for each stock was set at ₹279–294.
After three days of bidding, Denta Water's initial public offering (IPO) closed with remarkable demand, receiving 221.54 times bids. Out of the 52.5 lakh shares available, 116.31 crore shares were bid on during the IPO. While the non-institutional investor (NII) category was subscribed to 507.07 times, the retail investor sector was booked 90.38 times. In the meantime, over the three days of bidding, the Qualified Institutional Buyers quota was bid 236.94 times.
Concerning the IPO
With no offer for sale component, Denta Water's initial public offering (IPO) consisted solely of a new issue of 0.75 crore shares. With a minimum lot size of 50 shares and a minimum investment of ₹14,700, retail investors were eligible to apply.
Qualified institutional bidders received nearly half of the issue, with non-institutional investors receiving the remaining 15%. The remaining 35% of the net offering went to retail investors.
Prior to its first public offering (IPO) on January 21, 2024, Denta Water secured ₹66.15 crore from anchor investors.
In compliance with applicable rules, the firm plans to use the net proceeds from the offering for general corporate purposes and to support its working capital requirements.
The Denta Water IPO's book running lead manager is Smc Capitals Limited, while the issue's registrar is Integrated Registry Management Services Private Limited.
Examine
Brokerages have recommended Denta Water and Infra Solutions' initial public offering (IPO) favorably, pointing to the market's promising growth for water and wastewater treatment.
SBI Securities: Sign up
Given the robust development potential of the Indian water and wastewater treatment market, which is anticipated to increase at a compound annual growth rate (CAGR) of 6.2 percent from CY24E to CY30E, SBI Securities has advised subscribing to the issue. The FY24 P/E and EV/EBITDA multiples for Denta Water in the highest price range are 13.1x and 9.8x, respectively. With revenue, EBITDA, and PAT reaching ₹239 crore, ₹79 crore, and ₹60 crore, respectively, the company recorded a strong financial performance between FY22–FY24, attaining a revenue CAGR of 41.3 percent, EBITDA CAGR of 23.6 percent, and PAT CAGR of 24.8 percent.
Anand Rathi: Long-Term Subscription
According to Anand Rathi, the IPO is reasonably priced and has been given a "Subscribe-Long Term" grade. With a market valuation of ₹785 crore post-issue, a return on net worth of 36.36%, and a P/E ratio of 13.14x and an EV/EBITDA ratio of 9.13x, the firm is valued at the upper price range. Denta Water and Infra Solutions has developed a great expertise in water management projects, especially groundwater recharge, according to the brokerage. The company benefits from an effective business model, a robust order book, and internal competencies in water infrastructure design and engineering.
Concerning the Business
Denta Water and Infra Solutions Limited was founded in 2016 and is a newcomer to the water and infrastructure industry. It focuses on groundwater recharge projects and specializes in the design, construction, and commissioning of water management infrastructure projects.
To meet the growing need for sustainable water solutions, the company, which specializes in water engineering and EPC services, works on large-scale infrastructure projects, such as groundwater recharge using recycled water. With the successful completion of important projects like Byrapura, Hiremagaluru LIS, and KC Valley, Denta Water and Infra Solutions has contributed significantly to Bengaluru's wastewater management and helped the government's Jal Jeevan Mission.
As of November 30, 2024, the company has 17 projects that are either in progress or will be carried out by a consortium. Water management projects account for ₹1,066.7 crore of the company's part of the total contract value of ₹1,100.4 crore.
Concerning the IPO
With no offer for sale component, Denta Water's initial public offering (IPO) consisted solely of a new issue of 0.75 crore shares. With a minimum lot size of 50 shares and a minimum investment of ₹14,700, retail investors were eligible to apply.
Qualified institutional bidders received nearly half of the issue, with non-institutional investors receiving the remaining 15%. The remaining 35% of the net offering went to retail investors.
Prior to its first public offering (IPO) on January 21, 2024, Denta Water secured ₹66.15 crore from anchor investors.
In compliance with applicable rules, the firm plans to use the net proceeds from the offering for general corporate purposes and to support its working capital requirements.
The Denta Water IPO's book running lead manager is Smc Capitals Limited, while the issue's registrar is Integrated Registry Management Services Private Limited.
Examine
Brokerages have recommended Denta Water and Infra Solutions' initial public offering (IPO) favorably, pointing to the market's promising growth for water and wastewater treatment.
SBI Securities: Sign up
Given the robust development potential of the Indian water and wastewater treatment market, which is anticipated to increase at a compound annual growth rate (CAGR) of 6.2 percent from CY24E to CY30E, SBI Securities has advised subscribing to the issue. The FY24 P/E and EV/EBITDA multiples for Denta Water in the highest price range are 13.1x and 9.8x, respectively. With revenue, EBITDA, and PAT reaching ₹239 crore, ₹79 crore, and ₹60 crore, respectively, the company recorded a strong financial performance between FY22–FY24, attaining a revenue CAGR of 41.3 percent, EBITDA CAGR of 23.6 percent, and PAT CAGR of 24.8 percent.
Anand Rathi: Long-Term Subscription
According to Anand Rathi, the IPO is reasonably priced and has been given a "Subscribe-Long Term" grade. With a market valuation of ₹785 crore post-issue, a return on net worth of 36.36%, and a P/E ratio of 13.14x and an EV/EBITDA ratio of 9.13x, the firm is valued at the upper price range. Denta Water and Infra Solutions has developed a great expertise in water management projects, especially groundwater recharge, according to the brokerage. The company benefits from an effective business model, a robust order book, and internal competencies in water infrastructure design and engineering.
Concerning the Business
Denta Water and Infra Solutions Limited was founded in 2016 and is a newcomer to the water and infrastructure industry. It focuses on groundwater recharge projects and specializes in the design, construction, and commissioning of water management infrastructure projects.
To meet the growing need for sustainable water solutions, the company, which specializes in water engineering and EPC services, works on large-scale infrastructure projects, such as groundwater recharge using recycled water. With the successful completion of important projects like Byrapura, Hiremagaluru LIS, and KC Valley, Denta Water and Infra Solutions has contributed significantly to Bengaluru's wastewater management and helped the government's Jal Jeevan Mission.
As of November 30, 2024, the company has 17 projects that are either in progress or will be carried out by a consortium. Water management projects account for ₹1,066.7 crore of the company's part of the total contract value of ₹1,100.4 crore.
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