Thu Jan 23 14:21:31 UTC 2025: **Denta Water and Infra IPO Oversubscribed on Day 2**

**Bengaluru, January 24, 2025** – The initial public offering (IPO) of Denta Water and Infra Solutions Ltd., a water and infrastructure solutions provider, concluded its second day of bidding with overwhelming response. The IPO was oversubscribed by 50.63 times, exceeding initial expectations. Retail investors showed strong interest, with their portion oversubscribed 43.51 times. The Non-Institutional Investor (NII) portion was oversubscribed a significant 128.41 times, while the Qualified Institutional Buyer (QIB) portion saw a more modest 4.75 times oversubscription.

The IPO, priced between ₹279 and ₹294 per share, raised slightly over ₹66 crore from anchor investors before the public offering. The total fresh issuance of 75 lakh equity shares aims to raise ₹220.5 crore at the upper price band, with ₹150 crore earmarked for working capital and the remainder for general corporate purposes. SMC Capitals is the lead manager for the IPO.

Denta Water’s strong performance is underpinned by a robust order book of ₹11,004.36 million (₹10,667.52 million in water management projects alone) as of November 30, 2024. This includes ₹3,479.85 million in completed projects, leaving ₹7,524.51 million in unexecuted orders expected to be completed within the next 24 to 36 months. The company’s revenue experienced significant growth, increasing from ₹119.6 crore in FY22 to ₹238.6 crore in FY24, a 41.3% CAGR. This growth is attributed to increased revenue from ongoing projects and completed pending orders. The company’s EBITDA and PAT also demonstrated strong growth during this period.

Analysts cite Denta Water’s strategic positioning within India’s rapidly expanding water treatment market (projected to reach USD 23.85 billion by 2033) and infrastructure sector (growing at a CAGR of 17.26%) as key drivers for the IPO’s success. The company’s focus on high-growth regions, particularly Karnataka, and its expertise in groundwater recharge projects further enhance its investment appeal. Several brokerage firms have issued “subscribe” recommendations for the IPO, highlighting its strong order book, execution capabilities, and growth prospects. While the grey market premium (GMP) fluctuated during the bidding period, it remained significantly positive, indicating strong investor confidence. The IPO closes on January 24th.

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