Enviro Infra Engineers Sets Price Band For Rs 650-Crore IPO

The initial public offering of Enviro Infra Engineers Ltd. will open for bidding this week with a price band of Rs 140 to Rs 148 per share. The issue opens for subscription on Nov. 22 and will close on Nov. 26.

Bids can be made for a minimum lot of 101 shares or in multiples thereof, according to the price band advertisement on Monday.

The Delhi-based company's proposed IPO is a combination of fresh issue of 3.86 crore equity shares and an offer for sale component of 52.68 lakh shares by promoters, according to the red herring prospectus filed with the Securities and Exchange Board of India.

With more than 4.39 crore shares on offer, the company is looking to raise Rs 650.43 crore from the public issue.

The anchor book issue will be open for subscription on Nov. 21. Shares will be listed on the BSE and National Stock Exchange.

At present, promoters hold over 93% stake in the company. Promoters Sanjay Jain and Manish Jain will offload 21.34 lakh equity shares each, while Ritu Jain and Shachi Jain will sell 5 lakh shares each under the offer for sale component.

Out of the proceeds from the fresh issue, Rs 181 crore will be used to meet working capital requirements, while Rs 120 crore will be used for repaying debt. The company will infuse Rs 30 crore into its subsidiary EIEL Mathura Infra Engineers Pvt. Besides, a portion will be used to fund inorganic growth through acquisitions and general corporate purposes.

Hem Securities Ltd. is the sole book running lead manager of the public issue.

Enviro Infra Engineers is engaged in designing, construction, operation and maintaining water and wastewater treatment plants and water supply scheme projects for government authorities and bodies.

The treatment process installed by the company at most of the STPs is zero liquid discharge-compliant and the treated water can be used for horticulture, washing, refrigeration, and other process industries.