The much-anticipated Concord Enviro IPO is all set to hit the market, offering investors a unique opportunity to participate in a company that specializes in sustainable water and wastewater treatment solutions. Here’s everything you need to know about this upcoming IPO, including its GMP, price band, objectives, and more.
IPO Overview
The Concord Enviro IPO is a book-built issue worth Rs 500.33 crore. This comprises a fresh issue of 0.25 crore shares, raising Rs 175 crore, and an offer for sale (OFS) of 0.46 crore shares, valued at Rs 325.33 crore. The subscription window opens on December 19, 2024, and closes on December 23, 2024.
Key IPO Details
- IPO Size: Rs 500.33 crore
- Fresh Issue: 0.25 crore shares raising Rs 175 crore
- OFS: 0.46 crore shares worth Rs 325.33 crore
- Opening Date: December 19, 2024
- Closing Date: December 23, 2024
- Listing Date: Tentatively December 27, 2024
- Stock Exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)
Price Band and Lot Sizes
The price band for the Concord Enviro IPO has been set at Rs 665 to Rs 701 per share. Here’s a breakdown of the minimum investments:
- Retail Investors: One lot (21 shares), requiring a minimum investment of Rs 14,721.
- Small Non-Institutional Investors (sNII): 14 lots (294 shares), amounting to Rs 2,06,094.
- Big Non-Institutional Investors (bNII): 68 lots (1,428 shares), requiring a minimum investment of Rs 10,01,028.
Book-Running Lead Managers and Registrar
The IPO is being managed by Motilal Oswal Investment Advisors Limited and Equirus Capital Private Limited. The registrar for the issue is Link Intime India Private Ltd.
Grey Market Premium (GMP)
As of December 17, 2024, the grey market premium (GMP) for the Concord Enviro IPO stood at Rs 0, reflecting no change in the estimated listing price of Rs 701 per share. While the GMP can influence investor sentiment, it’s important to focus on the fundamentals and long-term potential of the company.
About Concord Enviro Systems Limited
Founded in July 1999, Concord Enviro Systems Limited is a leading provider of water and wastewater treatment solutions. The company’s innovative technologies, including zero-liquid discharge (ZLD) systems, aim to promote water reuse and sustainability. With a global footprint, the company caters to various industries, ensuring efficient and environmentally friendly water management.
IPO Objectives
The funds raised through the Concord Enviro IPO will be utilized for multiple strategic objectives:
1. Investment in a Greenfield Project
A significant portion of the funds will be allocated to Concord Enviro FZE, a wholly owned subsidiary, for setting up a new assembly unit in the UAE. This facility will focus on water and wastewater treatment systems and related membrane modules.
2. Expansion of Existing Facilities
Another chunk of the funds will go towards expanding the facilities of Rochem Separation Systems (India) Private Limited (RSSPL). This includes enhancing manufacturing capabilities, storage, and support infrastructure at its Vasai plant.
3. Purchase of Plant and Machinery
The company will allocate part of the proceeds to acquire essential plant and machinery to meet its growing operational needs.
4. Debt Repayment
Funds will be used to prepay or repay certain borrowings of Concord Enviro FZE, reducing financial liabilities and improving the company’s balance sheet.
5. Working Capital Requirements
A portion of the proceeds will address the working capital needs of Concord Enviro FZE, ensuring smooth business operations.
6. Joint Venture Investment
The company plans to invest in Reserve Enviro Private Limited, a joint venture supporting the innovative “pay-per-use” or “pay-as-you-treat” business model, providing industries with cost-effective water treatment solutions.
7. Growth and Technology Initiatives
Funds will also allocate for growth and technological advancements, including exploring new markets and developing innovative solutions.
8. General Corporate Purposes
The remaining proceeds will use for general corporate purposes to strengthen the company’s overall operations and future plans.
Why Should You Consider This IPO?
- Sustainability Focus: With a rising emphasis on sustainable solutions, Concord Enviro Systems is well-positioned to meet the increasing demand for water reuse and zero-liquid discharge technologies.
- Global Presence: The company’s international footprint ensures diversified revenue streams and growth opportunities.
- Growth Potential: Investments in new projects and technological advancements signal a strong growth trajectory.
- Experienced Management: A robust leadership team with years of expertise enhances the company’s operational efficiency and strategic planning.
Risks to Keep in Mind
While the IPO offers promising prospects, potential investors should also consider the risks, including market competition, regulatory changes, and dependence on global economic conditions. It’s always wise to consult a financial advisor before making investment decisions.
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Conclusion
The Concord Enviro IPO provides an exciting opportunity for investors to align with a company focused on sustainable and innovative water management solutions. With clear objectives and a strong market presence, this IPO is worth considering for those seeking long-term growth and value.
Are you ready to take the plunge? The subscription window opens on December 19, 2024, so mark your calendar and make an informed decision!
