Denta Water and Infra shares list at 12% premium over issue price
Denta Water share price listed at a 12% premium after a highly subscribed IPO. The company specializes in water management and infrastructure projects, with major contributions to Bengaluru's wastewater management. It plans to use IPO funds for wo...
By Akash Podishetti, ETMarkets.com | Updated:
ETMarkets.com
After receiving one of the highest subscription responses this year, Denta Water and Infra Solutions' shares listed at a 12% premium over the issue price. The stock debuted at Rs 330 on the BSE and Rs 325 (10.5% premium) on NSE.
Ahead of the debut, the company's shares had a healthy GMP of 25%.
The IPO was offered to investors at Rs 294 at the upper end. The company was valued at FY24 P/E and EV/EBITDA multiples of 13.1x and 9.8x at post-IPO capital.
The IPO, which was entirely a fresh equity sale of 75 lakh shares, was subscribed to 221 times at close, driven by strong bidding from non-institutional and institutional investors.
The company plans to use the funds raised from the IPO for working capital requirements and general corporate purposes.
Denta Water and Infra Solutions is a growing water and infrastructure solutions company engaged in the design, installation, and commissioning of water management infrastructure projects with expertise in groundwater recharging projects.
Additionally, the company also undertakes construction projects in the fields of railways and highways. It has successfully executed major projects like Byrapura, Hiremagaluru LIS, and KC Valley, contributing to Bengaluru's wastewater management and supporting the government's Jal Jeevan Mission (JJM).
As of November 2024, the company has 17 ongoing projects, either implemented by them or under consortium. The company’s share in the aggregate contract value is Rs 1,100 crore, out of which Rs 1,067 crore pertains to water management projects.
Denta Water's revenue, EBITDA, and PAT achieved a CAGR of 41.3%, 23.6%, and 24.8%, respectively, during the FY22-FY24 period.
Analysts say the industry forecast indicates healthy growth for the Indian water and wastewater treatment market, which is projected to expand at a CAGR of 6.2% for the CY24E-CY30E period.
Key risks for the business include revenue concentration from the government, which accounts for nearly 63.4% in FY24. Further delays in the completion of projects and outstanding litigation against the promoter are also viewed as potential hindrances to growth.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of Economic Times)
Ahead of the debut, the company's shares had a healthy GMP of 25%.
The IPO was offered to investors at Rs 294 at the upper end. The company was valued at FY24 P/E and EV/EBITDA multiples of 13.1x and 9.8x at post-IPO capital.
The IPO, which was entirely a fresh equity sale of 75 lakh shares, was subscribed to 221 times at close, driven by strong bidding from non-institutional and institutional investors.
The company plans to use the funds raised from the IPO for working capital requirements and general corporate purposes.
Denta Water and Infra Solutions is a growing water and infrastructure solutions company engaged in the design, installation, and commissioning of water management infrastructure projects with expertise in groundwater recharging projects.
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Additionally, the company also undertakes construction projects in the fields of railways and highways. It has successfully executed major projects like Byrapura, Hiremagaluru LIS, and KC Valley, contributing to Bengaluru's wastewater management and supporting the government's Jal Jeevan Mission (JJM).
As of November 2024, the company has 17 ongoing projects, either implemented by them or under consortium. The company’s share in the aggregate contract value is Rs 1,100 crore, out of which Rs 1,067 crore pertains to water management projects.
Denta Water's revenue, EBITDA, and PAT achieved a CAGR of 41.3%, 23.6%, and 24.8%, respectively, during the FY22-FY24 period.
Analysts say the industry forecast indicates healthy growth for the Indian water and wastewater treatment market, which is projected to expand at a CAGR of 6.2% for the CY24E-CY30E period.
ADVERTISEMENT
Key risks for the business include revenue concentration from the government, which accounts for nearly 63.4% in FY24. Further delays in the completion of projects and outstanding litigation against the promoter are also viewed as potential hindrances to growth.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of Economic Times)
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