The initial share sale of Concord Enviro Systems is set to hit Dalal Street with its maiden public issue on December 19 as it has filed a red herring prospectus (RHP) with the Registrar of Companies. This will be among six public issues opening for subscription next week. DAM Capital Advisors, Ventive Hospitality, Sanathan Textiles, Mamata Machinery, and Transrail Lighting are other five IPOs.
The company will announce its IPO price band details on December 16.
The initial public offering of Concord is a mix of fresh issue of Rs 175 crore, and an offer-for-sale of 46.40 lakh equity shares by existing shareholders including only investor AF Holdings.
AF Holdings owns 39.07 percent stake in the water and wastewater treatment and reuse solutions provider, while the remaining shares are held by promoters.
Apart from developing water and wastewater treatment systems and plants, and turnkey solutions, the company also provides operations and maintenance services and manufactures consumables and spare parts. It competes with listed entities like Praj Industries, Ion Exchange, Triveni Engineering, VA Tech Wabag, and Thermax.
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The total order book as of August 2024 was Rs 501.75 crore, including 74.50 percent for system and plant orders. It exports water solutions and services to countries in North America, Latin America, Africa, the Middle East, and Southeast Asia, with a client base of 310 customers worldwide. Diageo Mexico Operaciones, S A De CV, and AB Mauri are some of the global customers.
The public issue will remain open till December 23, while the anchor book will be launched for a day on December 18.
Also read: Dealmaker Dharmesh Mehta-led DAM Capital Advisors' IPO to open on Dec 19, files RHP
The Mumbai-based company will utilise 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; and general corporate purposes.
On the financials front, Concord Enviro Systems has recorded a more than seven-fold jump in profit at Rs 41.4 crore for the year ended March 2024, up from Rs 5.5 crore in the previous fiscal. Revenue during fiscal 2024 increased by 44.8 percent to Rs 496.8 crore, up from Rs 343.2 crore in the previous year. Profit for the five-month period ended August 2024 stood at Rs 0.5 crore on revenue of Rs 206.2 crore.
The trading in Concord Enviro shares will commence on the BSE and NSE effective December 27. Motilal Oswal Investment Advisors, and Equirus Capital are the book-running lead managers to the issue.
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