Enviro Infra Engineers IPO day 3: GMP rises after strong subscription status. Apply or not?

Enviro Infra Engineers IPO: The initial public offering (IPO) of Enviro Infra Engineers Limited opened on 22nd November and will remain open for bidding until 26th November 2024. This means investors have just one day to apply for the Enviro Infra Engineers IPO. According to Enviro Infra Engineers IPO subscription status, after day one of bidding, the public issue received a decent response from investors as it was booked over two times its offered shares.

Meanwhile, after a trend reversal in the Indian stock market and a strong reaction by the Indian primary market investors, Enviro Infra Engineers' share price has risen in the grey market. According to stock market observers, Enviro Infra Engineers Limited shares are trading at a premium of ₹55 in the grey market today.

Enviro Infra Engineers IPO GMP today

As mentioned above, Enviro Infra Engineers IPO GMP (Grey Market Premium) today is ₹55, which is ₹2 higher than Monday's GMP of ₹53. In the last five days, Enviro Infra Engineers IPO GMP has risen from ₹23 to ₹55, which is praiseworthy, said observers. They noted that trend reversal on Dalal Street and decisive response by investors are some of the primary reasons for the rise in the grey market sentiments regarding Enviro Infra Engineers IPO.

Enviro Infra Engineers IPO subscription status

In the three days of bidding, the book build issue was booked 89.90 times, the retail portion 24.48 times, the NII segment 153.80 times, and the QIB segment 157.05 times.

Enviro Infra Engineers IPO review

Giving a 'subscribe' tag to the public issue, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, "Enviro Infra's IPO has garnered significant attention in the first two days of bidding. While the company reported impressive growth in FY24, with revenue soaring over 115% and Profit After Tax (PAT) more than doubling, recent quarterly results show a decline in revenue and PAT. Additionally, the company's assets increased from ₹761.90 crore to ₹812.87 crore in Q1FY25, but at the cost of a rise in net borrowings, which jumped from ₹235 crore to ₹305 crore. So, high-risk investors can apply for the public issue for listing gain only."

Assigning a 'buy' tag to the book build issue, Akriti Mehrotra, Research Analyst at StoxBox, said, "The company's diversified portfolio of 21 ongoing projects and its focus on EPC and HAM models further enhance its revenue streams. EIEL also integrates sustainable practices like solar power and Compressed Biogas (CBG) plants into its projects. Financially, EIEL has shown consistent growth, with a revenue CAGR of 80.6%, rising from Rs. 2,235 million in FY22 to Rs. 7,289 million in FY24, and a profit CAGR of 78.9%, from Rs. 345 million in FY22 to Rs. 1,086 million in FY24. Despite risks such as reliance on government contracts and high working capital, EIEL's strong financial performance and focus on growth strategies position it for continued success. We recommend a "SUBSCRIBE" rating for the issue."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.