Mon Nov 25 19:38:09 UTC 2024: **Enviro Infra Engineers IPO Oversubscribed by 12.52 Times on Day 2**

MUMBAI, INDIA – October 29, 2024 – The initial public offering (IPO) of Enviro Infra Engineers, a company specializing in sewage treatment and sewerage systems, concluded its second day of bidding significantly oversubscribed. The IPO, valued at ₹650 crore, saw a total subscription of 12.52 times by the close of the second day.

Non-institutional investors (NIIs) demonstrated the strongest interest, oversubscribing their portion by over 34 times. Retail investors also showed significant enthusiasm, subscribing 8.73 times their allotted portion. Qualified institutional buyers (QIBs) subscribed 2.58 times. The employee portion was also significantly oversubscribed at 13.48 times.

The company had previously raised ₹195 crore from anchor investors, including prominent names like Quant Mutual Fund and LIC Mutual Fund. The IPO comprises a fresh issue of 3.87 crore equity shares and an offer for sale (OFS) of 52.68 lakh shares by promoters. Shares were priced between ₹140 and ₹148.

While the IPO’s strong performance suggests positive market sentiment, analysts offer varied perspectives. Some point to the company’s robust order book (₹19,063 million as of June 30, 2024) and growth potential in India’s expanding water and wastewater treatment market, projected to reach USD 521.97 billion by 2033. Others express caution, citing the higher-than-peer valuation and potential impact of subdued tendering activity in the first half of fiscal year 2025. Despite this, several brokerages recommend a “Subscribe for Long Term” rating.

The grey market premium (GMP) for Enviro Infra Engineers shares was reported at ₹52 on Monday, suggesting an anticipated listing price significantly higher than the IPO price. However, investors are advised to consult with financial experts before making any investment decisions.

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