The initial public offering (IPO) of Enviro Infra Engineers Limited has captured significant attention in the Indian primary market. Opening for subscription on 22nd November 2024, the IPO has maintained an upward trajectory in investor interest. Now, as the bidding window closes on 26th November, retail and institutional investors are keenly analyzing the Grey Market Premium (GMP) and subscription figures to determine whether to invest.
On Day 3, the IPO has seen a robust subscription, with the retail portion oversubscribed by 13.22 times and the non-institutional investor (NII) segment surging past 66 times its allocation. Additionally, the GMP has risen steadily, reflecting strong secondary market sentiment. But does this translate to a solid investment opportunity? Let’s delve into the details.
Enviro Infra Engineers IPO Day 3: GMP Rises After Strong Subscription Status. Apply or Not?
The big question is whether to invest in Enviro Infra Engineers IPO on its final subscription day. With a strong rise in GMP and oversubscription across all segments, market experts are offering mixed advice. Let’s unpack the numbers and expert opinions.
What is Enviro Infra Engineers Limited?
Enviro Infra Engineers Limited (EIEL) is a fast-growing infrastructure company specializing in Engineering, Procurement, and Construction (EPC) projects and Hybrid Annuity Model (HAM) contracts. Their portfolio includes sustainable projects like solar energy plants and Compressed Biogas (CBG) facilities, which align with India’s green development goals.
Enviro Infra Engineers IPO Subscription Details
How Did the IPO Perform on Day 3?
As of 11:39 AM on Day 3, the subscription statistics are as follows:
- Retail Portion: Subscribed 13.22 times
- NII Segment: Subscribed 66.44 times
- Qualified Institutional Buyers (QIB): Subscribed 2.70 times
This high demand underscores strong investor confidence, particularly among high-net-worth individuals (HNIs).
Enviro Infra Engineers IPO GMP Today
The Grey Market Premium (GMP), a key indicator of IPO demand in unofficial trading, has seen steady growth. On Day 3, the GMP stood at ₹55, up from ₹53 on the previous day. Notably, this is a remarkable jump from the ₹23 GMP five days ago, reflecting bullish sentiment.
| Date | GMP (₹) |
|---|---|
| 21st November | ₹23 |
| 22nd November | ₹35 |
| 23rd November | ₹45 |
| 25th November | ₹53 |
| 26th November | ₹55 |
What Influences the GMP Rise?
1. Market Sentiment
The trend reversal on Dalal Street and increased activity in the primary market are contributing factors to the GMP rise.
2. Strong Investor Response
Oversubscription in the retail and NII segments has buoyed investor confidence, driving secondary market demand.
Key Financial Metrics of Enviro Infra Engineers
The company has delivered an impressive financial performance, with a revenue CAGR of 80.6% between FY22 and FY24. Below are the key metrics:
| Metric | FY22 | FY24 |
|---|---|---|
| Revenue (₹ Million) | 2,235 | 7,289 |
| Profit After Tax (₹ Million) | 345 | 1,086 |
| Asset Growth (₹ Crore) | 761.90 | 812.87 |
| Net Borrowings (₹ Crore) | 235 | 305 |
Expert Opinions: Apply or Not?
Bullish View: Akriti Mehrotra, StoxBox
- Verdict: Subscribe
- Reasoning:
- Strong revenue growth and a diversified project portfolio.
- Focus on sustainable practices like solar energy and CBG plants.
- Impressive financials, with revenue and profit nearly tripling in two years.
Cautious View: Anshul Jain, Lakshmishree Investment
- Verdict: High-risk investors may apply for listing gains
- Reasoning:
- Revenue and profit declines in recent quarters.
- Rising net borrowings and dependence on government contracts pose risks.
Should You Apply for Enviro Infra Engineers IPO?
The decision boils down to your risk appetite. While the IPO offers strong growth potential and listing gains, cautious investors should consider the company’s high debt levels and reliance on government projects.
Unique Features of Enviro Infra Engineers Limited
- Sustainable Infrastructure Projects: Integration of renewable energy technologies.
- Hybrid Annuity Model (HAM): Ensures predictable cash flows.
- Diverse Revenue Streams: Includes 21 ongoing projects across India.
How to Apply for Enviro Infra Engineers IPO?
Applying is straightforward via ASBA (Application Supported by Blocked Amount) through your bank or broker. Ensure you have an active demat account for seamless application.
Enviro Infra Engineers IPO Review
- Strengths: Strong financials, growing project portfolio, and sustainability focus.
- Weaknesses: Dependency on government contracts and high borrowings.
6 Frequently Asked Questions (FAQs)
1. What is the Enviro Infra Engineers IPO GMP on Day 3?
The GMP stands at ₹55, reflecting strong secondary market sentiment.
2. Is Enviro Infra Engineers IPO worth subscribing to?
Yes, especially for listing gains, but weigh the financial risks.
3. What are the subscription figures for the IPO?
The IPO is subscribed 21.52 times, with retail at 13.22 times and NII at 66.44 times.
4. What is the price band for the IPO?
The IPO is priced in the range of ₹102 to ₹110 per share.
5. When will the allotment status be announced?
The allotment is expected to be finalized by 29th November 2024.
6. How can I check the allotment status?
Visit the official registrar’s website or check via your broker’s platform.
Conclusion
The Enviro Infra Engineers IPO presents a compelling case for both retail and institutional investors, thanks to its robust financial performance and sustainability focus. However, potential risks, such as rising debt and dependency on government contracts, cannot be ignored. For those seeking short-term gains, the IPO offers significant potential with its rising GMP and oversubscription.
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