AF Holdings-backed Concord Enviro Systems files IPO papers with Rs 192-crore fresh issue

Concord Enviro Systems

Water and wastewater treatment solutions provider Concord Enviro Systems, which is backed by the Mauritius-based AF Holdings, has filed preliminary papers with the capital markets regulator SEBI to raise funds via initial public offering.

The IPO comprises of a fresh issuance of equity shares worth Rs 192.3 crore, and an offer-for-sale (OFS) of 51,94,520 equity shares by the existing shareholders.

AF Holdings, the only investor in the company with 39.07 percent stake, will be selling 47.4 lakh equity shares via OFS, and the remaining 4,54,520 equity shares will be offloaded by the Goel family.

Promoter Goel family holds 60.93 percent shareholding in the Mumbai-based company.

The wastewater treatment and zero liquid discharge (ZLD) solutions provider serviced over 353 domestic and 24 international customers in several industries such as pharmaceuticals, chemicals, food and beverage, defence and energy, automotive and auto ancillaries, steel and textiles, in fiscal 2024.

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Diageo Mexico Operaciones, S A De C V, Grasim Industries, AB Mauri, Anthem Biosciences, Bhopal Glues and Chemicals, Kasyap Sweetners, LANXESS India, Puja Spintex, SFC Environmental Technologies, SMS, and Tagros Chemicals India are some of the customers it provided services.

With two manufacturing facilities in India and UAE, and inhouse R&D team of 21 employees, Concord Enviro Systems had received four patents in India and had filed nine additional patent applications as of fiscal 2024.

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The Goel family-owned company, which competes with listed peers like VA Tech Wabag, Triveni Engineering, Ion Exchange, Praj Industries, and Thermax recorded robust financial performance in the past year ended March 2024 with profit growing 7.5 times to Rs 41.4 crore and revenue rising 44.8 percent to Rs 496.8 crore compared to previous year, but the profit in FY23 at Rs 5.5 crore was lower compared to Rs 16.5 crore in FY22 and revenue during the same period increased just 4.2 percent to Rs 343.2 crore.

EBITDA (earnings before interest, tax, depreciation, and amortisation) for fiscal 2024 surged 57.4 percent to Rs 68.2 crore with margin expansion of 110 bps at 13.7 percent, compared to previous fiscal, but EBITDA in FY23 was down by 20.2 percent to Rs 43.4 crore compared to previous year.

Motilal Oswal Investment Advisors, and Equirus Capital Private are acting as book running lead managers to the issue, while Link Intime India is the registrar to the offer.