Concord Enviro Systems Ltd has set a price band of Rs 665-701 per share for its upcoming initial public offering (IPO), scheduled to open for subscription on December 19. Anchor investor bidding will commence on December 18, while the public issue will close on December 22. The basis of allotment will be finalized on December 24, with refunds initiated and equity shares credited to demat accounts by December 26. The issue will formally conclude on December 27.
The IPO includes a fresh issue worth Rs 175 crore and an offer for sale (OFS) of up to 4.64 million shares by existing shareholders and promoters. At the upper price band, the OFS is valued at Rs 325 crore, translating to an estimated market capitalization of approximately Rs 1,450 crore.
AF Holdings currently holds a 39.07% stake in the Mumbai-based water and wastewater treatment and reuse solutions provider, with the remaining ownership controlled by the promoters.
Concord Enviro Systems specializes in developing water and wastewater treatment plants, turnkey solutions, operations and maintenance services, and the production of consumables and spare parts. The company competes with listed players such as Praj Industries, Ion Exchange, Triveni Engineering, VA Tech Wabag, and Thermax.
As of August 2024, the company’s order book stood at Rs 501.75 crore, with system and plant orders accounting for 74.5%. The company exports its water solutions and services to North America, Latin America, Africa, the Middle East, and Southeast Asia, catering to a global client base of 310 customers, including notable clients such as Diageo Mexico Operaciones S.A. De C.V. and AB Mauri.
Proceeds from the fresh issue will be allocated towards a greenfield project in the UAE, a brownfield project in Vasai, acquisition of plant and machinery, debt repayment, working capital requirements, technology upgrades, market expansion initiatives, and general corporate purposes.
On the financial front, Concord Enviro Systems posted a significant seven-fold increase in profit, reaching Rs 41.4 crore for the fiscal year ended March 2024, compared to Rs 5.5 crore in the previous year. Revenue surged 44.8% year-on-year to Rs 496.8 crore, up from Rs 343.2 crore. For the five-month period ending August 2024, the company reported a profit of Rs 0.5 crore on revenue of Rs 206.2 crore.
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