Enviro Infra IPO GMP slips marginally ahead of tomorrow's listing; analysts expect strong listing gains, advise 'long-term hold'

Enviro Infra IPO was subscribed 89.90 times on the closing day of bidding.

Enviro Infra Engineers IPO GMP witnessed a marginal dip ahead of its scheduled listing on the exchanges on Friday, November 29.

The IPO, which closed with an overwhelming 89.90 times subscription, saw shares trading at a premium of Rs 49 in the grey market, translating to a 33.11 percent premium over the upper price band, according to data from Investorgain. The GMP, which earlier hovered around 38 percent, has slightly declined.

Meanwhile, those who subscribed to the maiden share sale by the Enviro Infra Engineers can check their allotment status on the official website of the registrar and the BSE.

Step-by-step guide to check Enviro Infra allotment status

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd. expect the stock to list with a significant premium of around 35 percent. "However, the actual listing performance could be influenced by broader market conditions. Long-term performance will depend on the company's ability to execute projects efficiently, manage costs, and adapt to evolving industry dynamics," she added.

Prashanth Tapse, Sr VP Research Analyst at Mehta Equities noted while long term investors should consider the company to 'Hold it for long-term' despite knowing short term volatility & risk in the markets.

Akriti Mehrotra, Research Analyst, StoxBox echoed similar sentiments saying "hold recommendation is advisable to capitalize on potential gains as the company continues to strengthen its market position."

Narendra Solanki, Head Fundamental Research-Investment Services, Anand Rathi Shares & Stock Brokers noted that "as of June 30, 2024, their Order Book includes 21 WWTPs and WSSPs for an aggregate value of ₹ 19,062.81 million. At the upper price band company is valuing at P/E of 30.72x, with an EV/EBITDA of 15.8x and market cap of ₹ 25,996 million post issue of equity shares and return on net worth of 37.83%. We suggest investors to HOLD the issue as a Long term view on IPO."

Enviro Infra Engineers, a company specialising in designing, constructing, operating, and maintaining water and wastewater treatment plants, as well as water supply scheme projects for government bodies, had priced its Rs 650-crore IPO in the range of Rs 140-148 per share.

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