Will Enviro Infra engineers IPO list with bang? GMP up 33%, Experts weigh

Shares of Enviro Infra Engineers are likely to make their market debut tomorrow, November 29, 2024. Here's what experts expect from the listing

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Enviro Infra Engineers IPO GMP: The unlisted shares of specialised water and wastewater management company Enviro Infra Engineers continue to command a strong premium in the grey market ahead of their market debut, scheduled for November 29, 2024. The company's shares are trading at around Rs 197, reflecting a grey market premium (GMP) of Rs 49 or 33.11 per cent over the IPO allotment price of Rs 148, according to sources tracking grey market activities. The current grey market trends suggest a favorable listing for the Enviro Infra Engineers shares. 

 

 

Enviro Infra Engineers IPO listing prediction

Despite a subdued market mood, Enviro Infra managed to attract a strong response from all categories of investors, including high demand from Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs), said Prashanth Tapse, Senior VP (Research) at Mehta Equities. The IPO was oversubscribed by 89.90 times by the close of the subscription period, driven primarily by QIBs, who bid for 153.80 times their allocated quota, according to BSE data.

 

"The subscription demand is justified by reasonable IPO valuation, sector-focused operations, and the increasing relevance of water and wastewater infrastructure treatment promoted by the government and industries," said Tapse.

 

Considering all these factors, supported by strong subscription demand and improving market sentiments, Tapse believes the stock can list with a healthy gain of 15-25 per cent over its issue price. He advised conservative investors to consider booking profits above 25 per cent due to ongoing market volatility.

 

"Long-term investors should hold the stock despite short-term market volatility and risks. For non-allotted investors, we recommend accumulating the stock on dips post-listing," he added.

 

Echoing similar views, Shivani Nyati, Head of Wealth at Swastika, said that the IPO witnessed an overwhelming response, with a subscription rate of 89.9 times and a substantial grey market premium (GMP), indicating strong investor confidence. She believes that the company's focus on sustainable infrastructure aligns well with global trends and regulatory mandates.

 

 "Given the strong investor interest, robust fundamentals, and positive market sentiment, the stock is expected to list with a significant premium of around 35 per cent," said Nyati. 

 

However, the actual listing performance, she said, could be influenced by broader market conditions. "Long-term performance will depend on the company's ability to execute projects efficiently, manage costs, and adapt to evolving industry dynamics," Nyati added.

 

Enviro Infra Engineers IPO details

Enviro Infra Engineers IPO is a book-built issue of Rs 650.43 crore, comprising a fresh issue of 38,680,000 shares and an offer for sale of 5,268,000 shares, with a face value of Rs 10 each. The public offering was available in a price band of Rs 140-148, with a lot size of 101 shares.

 

Enviro Infra Engineers, a specialized water and wastewater management company, offers services such as designing, constructing, operating, and maintaining Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities and bodies. Its WWTP portfolio includes Sewage Treatment Plants (STPs), Sewerage Schemes (SS), and Common Effluent Treatment Plants (CETPs).