Enviro Infra Engineers IPO - Issue Details, Financials, Valuations, Peer Comparison, Risks & More: Anand Rathi

Anand Rathi Report

Enviro Infra Engineers Ltd. launched its initial public offering today and the offer closes for subscription on Nov. 26. The Delhi-based a leading engineering company specialising in the design, construction and maintenance of water and wastewater treatment solutions has fixed a price band of Rs 140 to Rs 148 per share. The minimum order lot for bidding is 101 shares or in multiples thereof.

The Rs 650.43 crore IPO is a combination of fresh issue of 3.86 crore equity shares and an offer for sale component of 52.68 lakh.

Objects of the Issue

1. Infusion of funds into their subsidiary to build 60 MLD STP Under the project

2. Working capital purpose

3. Repayment/prepayment of outstanding borrowings availed by the company;

4. Funding inorganic growth and general corporate purposes

Valuation

Enviro Infra Engineers has an in house designing, engineering and execution team 180 engineers with Diversified Order Book of 21 projects across India for an aggregate value of Rs 19,062.8 million as of June 30, 2024 across India and In-house execution capabilities with timely delivery and established track record enabling consistent increase in eligibility for high value project tenders along with Use of advanced technologies in the construction and installation of WWTPs and WSSPs.

At the upper price band company is valuing at P/E of 30.72x, with an EV/Ebitda of 15.8x and market cap of Rs 25,996 million post issue of equity shares and return on net worth of 37.83%.

We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO.

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