Enviro Infra stock declines after stellar listing at 49% premium
Shares of Enviro Infra debuted at a strong premium on Friday, listing at 49 per cent premium over the issue or IPO price of ₹148. However, it ended the day’s trade 40 per cent higher over IPO price.
The stock listed on the NSE at ₹220 (reached intraday high of ₹233.70) and ended at ₹207.16, 5.84 per cent lower than the listing price, however 40 per cent above the IPO price.
On the BSE, the stock closed at ₹207, 5.05 per cent lower than the listing price of ₹218.
Enviro Infra Engineers stock made a stellar debut on NSE and BSE on Friday. The stock listed on the NSE at ₹220, a 49 per cent premium over the IPO price of ₹148. On the BSE, the stock debuted at ₹218, a premium of 47 per cent.
The stock closed at ₹207.07, up 40 per cent over the issue price of ₹148 on the NSE. During the day, it touched a high of ₹233.70 and alow of ₹205.05.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, commented on the stellar debut, “This outstanding performance was driven by the company’s strong fundamentals, strong investor interest (89.9 times subscribed), and the positive sentiment surrounding the water and wastewater treatment sector.”
“While the initial listing is promising, long-term success will depend on Enviro Infra’s ability to capitalise on its growth opportunities and deliver strong financial performance. But, as of now, investors may hold their position by keeping a stoploss at around 200.”
Nyati also cautioned that investors should remain cautious and monitor the company’s performance closely, considering factors such as project execution risks, regulatory changes, and competition in the sector.
IPO details
The ₹650.43-crore IPO received an overwhelming response from all categories of investors, with an overall subscription of 89.90 times, QIBs subscribed 157.05 times, NIIs 153.80 times, retail portion 24.48 times and employees 37.77 times.
The IPO was a combination of a fresh issue (₹572.46 crore) and an offer-for-sale (₹77.97 crore). Promoters sold 52.68 lakh shares in the OFS. The company raised around ₹195 crore from anchor investors. Hem Securities was the sole book-running lead manager of the public issue.
Quant Mutual Fund, Motilal Oswal Mutual Fund, LIC Mutual Fund, Abakkus Diversified Alpha Fund-2, Singularity Equity Fund I, and Meru Investment Fund PCC Cell 1 were among the anchor investors.
Proceeds from the fresh issue, totalling ₹181 crore, will be used to meet working capital requirements; ₹100 crore will be used to pay debt; and ₹30 crore will be infused into the company’s subsidiary, EIEL Mathura Infra Engineers, to build a 60 million litres-per-day Sewage Treatment Plant (STP) in Mathura, Uttar Pradesh. A portion will also be used for general corporate purposes.
