Denta Water & Infra shares likely to make strong debut today; what do analysts say?

Denta Water

Denta Water & Infra Solutions shares are expected to make a strong market debut on January 29. Analysts expect the shares of the company to be listed at 35 percent premium to IPO price of Rs 294.

Ahead of the listing, the unlisted shares of the company were trading with a grey market premium (GMP) of 25 percent to IPO price at Rs 367 as per data on Investorgain.

Shivani Nyati from Swastika Investmart believes the shares of the company will be good for the "the long-term investment horizon". "Denta Water & Infra Solutions had an order book worth Rs. 752+ crore and the IPO is priced fairly. The IPO is generating significant investor interest, with a strong subscription of 221 times and a good grey market premium (GMP) of 30%. Given the financial performance and the potential risks, this IPO may consider for listing gains as well as the long-term investment horizon," she said.

Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi Shares, also held a positive view. "At the upper price band, the company is valued at P/E of 13.14x, with an EV/EBITDA of 9.13x and market cap of Rs 7,849 million post issue of equity shares...We suggest investors to HOLD the issue as a long-term view on IPO according to their risk appetite," he said.

Also read: Denta Water & Infra IPO allotment status declared after delay

Akriti Mehrotra, Research Analyst at StoxBox said, "Denta Water and Infra Solutions Ltd. is set for a strong market debut, anticipated to list with a premium of 35 percent...Overall, Denta Water's strategic focus on water management projects, expanding market opportunities, and robust order book position it for continued growth in the water management and infrastructure sectors. Investors who have been allocated shares are advised to hold their positions with a medium- to long-term outlook."

The company had set a price band of Rs 279-294 per share for the IPO which was subscribed nearly 222 times between January 22 and January 24. The portion reserved for non-institutional investors fetched a whopping 507.05 times subscriptions, while the category for retail individual investors (RIIs) got subscribed 90.33 times. The quota for qualified institutional buyers (QIBs) also saw strong interest, being booked 236.94 times. Earlier, it raised a little over Rs 66 crore from anchor investors.

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