Enviro Infra Engineers IPO: Firm raises ₹194.6 crore via anchor investors ahead of public issue

Enviro Infra Engineers Limited has raised ₹194.6 crore from investors in its anchor round ahead of the public issue, according to the company's BSE filing on Thursday, November 21.

According to the exchange filing, the company has allocated 1,31,54,400 or 1.31 crore equity shares to the anchor investors at an allocation price of ₹148 per share to 22 anchor investors (including mutual fund schemes) at a face value of ₹10 per share. 

The anchor investor pool of the Enviro Infra Engineers IPO includes Quant Mutual Fund, Motilal Oswal Mutual Fund, Abakkus Fund, Singularity, Winro Commercial India, Meru Investments, Life Insurance Corporation of India, Nuvama Mutual Fund, etc.

According to the BSE filing on Thursday, Quant Mutual Fund, at 12.84 per cent, Motilal Oswal at 10.27 per cent, Abakkus Fund at 7.7 per cent, Singularity at 7.7 per cent, Winro Commercial India at 7.19 per cent, and Meru Investments at 7.19 per cent, were the top anchor investors in the anchor issue. 

The company also said that 30.82 per cent of the allocation to anchor investors was allocated to three domestic mutual funds through a total of six schemes, according to the exchange filing.

“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 ₹ 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,” said Anand Rathi Research Team in an analyst report.

Enviro Infra Engineers IPO Details

Enviro Infra Engineers is an infrastructure company that specialises in designing, building, operating, and maintaining water and wastewater treatment plants (WWTPs) and water supply projects (WSSPs) for government agencies or entities.

The IPO is set to open for public subscription on Friday, November 22, and closes on Tuesday, November 26. The company has also fixed the price band in the range of ₹140 to ₹148 per equity share with a face value of ₹10 per share. 

The IPO is a fresh issue of 3.87 crore equity shares and a sale of 52.68 lakh shares by the selling shareholders (promoters). The shares are expected to be listed on BSE and NSE on Friday, November 29. 

Enviro Infra Engineers plans to use the money raised from the public issue to support the company's working capital requirements. The company also aims to support its subsidiary EIEL Mathura in constructing 60 MLD STP for the ‘Mathura Sewerage Scheme’, repaying current debts, and enabling growth through potential acquisitions and general corporate needs.

Enviro Infra Engineers will allot not more than 50 per cent of the shares to Qualified Institutional Buyers (QIB), not less than 15 per cent to Non-Institutional Investors (NII), and not less than 35 per cent to retail investors.