Enviro Infra Engineers IPO GMP Indicates 11.5% Listing Gain Ahead Of Nov. 22 Launch

The initial public offering of Enviro Infra Engineers Ltd. is set to open for subscription on Nov. 22. Ahead of the opening, Enviro Infra Engineers IPO's GMP indicates a listing gain of 11.5% at the upper end of the price band.

The GMP stood at Rs 17 at 8:30 a.m. on Nov. 19, as per InvestorGain. This indicates a decent listing over the upper limit of the price band, given that current trends sustain. This indicates a listing price of Rs 165 per share.

The three-day subscription window for Enviro Infra Engineers IPO will close on Nov. 26. The IPO share allotment status is likely to be finalised on Nov. 27.

The IPO listing date has been tentatively fixed as Nov. 29. Enviro Infra Engineers' shares will be listed on the BSE and NSE.

Enviro Infra Engineers IPO price band has been fixed at Rs 140 to Rs 148 apiece. Retail investors have to apply for at least 101 shares in a single lot, taking the minimum investment to Rs 14,948 for each application.

The IPO is a combination of a fresh issue of 3.87 crore shares worth Rs 572.46 crore and an offer-for-sale component of 53 lakh shares worth Rs 77.97 crore. The issue has a total offer size of Rs 650.43 crore. 

Bigshare Services Pvt. is the registrar for the offer, while Hem Securities Ltd. is the book running lead manager of the IPO.

The company in its red herring prospectus said that it plans to utilise the net proceeds from its IPO to meet working capital requirements, repay certain debts, and fund its subsidiary, EIEL Mathura Infra Engineers Pvt., to set up a 60 MLD sewage treatment plant for the ‘Mathura Sewerage Scheme’ project. The rest of the proceeds will be used for general corporate purposes.

Enviro Infra Engineers Ltd., established in 2009, deals with the design, construction, operation, and maintenance of water and waste-water treatment plants (WWTPs), and water supply projects (WSSPs). Its clients largely include government entities or agencies.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.