Concord Enviro Systems IPO sees 59% subscription on day 1, retail portion fully booked

Concord Enviro Systems IPO

The initial share sale of Concord Enviro Systems, a water and wastewater treatment solutions provider, has received decent response from investors on December 19, the first day of bidding. Investors subscribed for 29.79 lakh equity shares, which was 59 percent of 50.15 lakh shares offer size, the subscription data on the exchanges showed.

The Rs 500-crore maiden public issue, comprising fresh issuance of equity shares worth Rs 175 crore and an offer-for-sale of 46.4 lakh shares worth Rs 325.3 crore by existing shareholders, will close on December 23. The price band for the offer is Rs 665-701 per share.

Retail investors were at the top to support the issue, with its allotted quota getting fully subscribed at 1.02, while non-institutional investors bid 35 percent shares of the reserved portion. Qualified institutional investors showed muted response to the offer, buying 588 shares against their allotted portion of 13.79 lakh shares.

The Mumbai-based company competing with listed peers like Va Tech Wabag, Praj Industries, Ion Exchange, Thermax, and Triveni Engineering has already raised Rs 150.1 crore through anchor book launched on December 18. Morgan Stanley, Societe Generale, Kotak Mahindra AMC, LIC Mutual Fund, ICICI Prudential Mutual Fund, Invesco India, and PGIM India are some of anchor investors.

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AF Holdings-backed Concord Enviro Systems intends to spend fresh issue proceeds for the greenfield project in UAE, brownfield project in Vasai, purchase of plant and machinery, repayment of the debt, and working capital requirements, technology and other growth initiatives for access to new markets.

Apart from development of water and wastewater treatment, reuse (including zero liquid discharge technology) and turnkey solutions, the company also provides operations and maintenance services and manufactures consumables and spare parts. The total order book as of August 2024 was Rs 501.75 crore.

The share allotment finalisation date will be December 24, while investors can start trading in Concord Enviro shares on the bourses effective December 27.