Concord Enviro Systems Files Fresh Draft Papers For IPO
The IPO will comprise of fresh issue worth Rs 192.3 crore and an offer for sale of 51.94 lakh shares by promoters and a major foreign investor.
Environmental engineering solutions company Concord Enviro Systems Ltd. has submitted fresh draft papers to the Securities and Exchange Board of India to raise funds through an initial public offering.
The IPO will comprise a fresh issue worth Rs 192.3 crore and an offer for sale of 51.94 lakh shares by promoters and a major foreign investor, according to the draft red herring prospectus.
Promoters divesting shares in the OFS include Prayas Goel, Prerak Goel, Pushpa Goel, Nidhi Goel and Namrata Goel.
Mauritius-based AF Holdings, which owns 39.07% equity, will offload 47 lakh shares.
Concord Enviro Systems is a global provider of water and wastewater treatment and reuse solutions. It has in-house capabilities to develop solutions across the entire value chain, including for designing, manufacturing, installing, and commissioning, operating and maintenance, and digitalisation solutions, including Internet-of-Things.
The company exports to countries in North America, Latin America, Africa, the Middle East, and Southeast Asia, serving 377 customers worldwide.
Proceeds from the IPO of up to Rs 25 crore will be invested in Concord Enviro FZE (CEF) for setting up a new assembly unit for water treatment systems, and Rs 10.505 crore will be invested in Rochem Separation Systems (India) Pvt. to expand its manufacturing facilities and support activities.
It will also use part of the proceeds for investment in technology and other growth initiatives for access to new markets.
Concord Enviro Systems reported a revenue from operations of Rs 496 crore in the financial year ended March 31, 2024, and a profit of Rs 41 crore, according to the DRHP. Outstanding liabilities stood at Rs 153 crore.
As of March, the order book was Rs 463 crore, of which 76.5% comprises system and plant orders and 23.48% comprises after-sales revenue.
Motilal Oswal Investment Advisors Ltd. and Equirus Capital Pvt. are the lead book running managers for the issue.
The company had previously approached SEBI with IPO papers in 2022 and received the regulator's clearance. However, it did not go ahead with the maiden public issue.
