Tue Nov 26 07:37:48 UTC 2024: ## Enviro Infra Engineers IPO Oversubscribed on Day 2

**MUMBAI, INDIA** – The initial public offering (IPO) of Enviro Infra Engineers, a company specializing in sewage treatment plants and sewerage systems, has seen strong investor interest. By 11:55 am on Monday, the second day of the IPO, subscriptions reached 5.97 times the number of shares offered, totaling bids for 18,37,49,704 shares against 3,07,93,600 shares on offer. This translates to a Rs 650.43 crore IPO.

Non-institutional investors showed particularly strong enthusiasm, with 14.41 times oversubscription in their category. Qualified institutional buyers (QIBs) subscribed 2.05 times, while retail individual investors (RIIs) subscribed 4.57 times. The IPO’s price band is set at Rs 140-148 per share.

The grey market premium (GMP) for Enviro Infra Engineers currently sits at Rs 200 per share, significantly higher than the IPO issue price, suggesting potential for substantial listing gains. The IPO is scheduled to list on November 29th.

Several brokerage firms, including Geojit Financial Services and Anand Rathi, have issued “subscribe” ratings for the IPO, citing the company’s strong order book, robust financial performance, and favorable valuations compared to its peers. They highlight the company’s substantial order book (Rs 2,125.6 crore in FY24) and the potential for growth fueled by government initiatives like the Jal Jeevan Mission.

The IPO comprises a fresh issue of 3.87 crore equity shares and an offer for sale of 52.68 lakh shares by promoters. Enviro Infra Engineers had already raised Rs 195 crore from anchor investors before the IPO. Proceeds from the fresh issue will be used for working capital, debt repayment, investment in a subsidiary, and general corporate purposes. Hem Securities is the sole book-running lead manager.

Read More