Denta Water and Infra Solutions Ltd, a prominent player in water management infrastructure, is set to launch its Initial Public Offering (IPO) on January 22, 2025. The subscription window will remain open until January 24, 2025. The company has established a price band of ₹279 to ₹294 per equity share, each with a face value of ₹10.
WATCH | Denta Water and Infra IPO in english| Denta Water and Infra IPO GMP, Price, Date, Allotment
IPO Details:
- Issue Type: Entirely a fresh issue of 75 lakh equity shares, aiming to raise approximately ₹220.5 crore at the upper price band.
- Allocation:
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
- Retail Individual Investors (RII): 35%
- Lot Size: Investors can bid for a minimum of 50 shares and in multiples of 50 shares thereafter.
- Key Dates:
- Anchor Investor Bidding: January 21, 2025
- IPO Opening Date: January 22, 2025
- IPO Closing Date: January 24, 2025
- Basis of Allotment: January 27, 2025
- Listing Date: January 29, 2025
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Established in 2016, Denta Water and Infra Solutions Ltd specializes in Engineering, Procurement, and Construction (EPC) services, focusing on water management infrastructure projects, including groundwater recharging and lift irrigation systems. The company has completed 32 water management projects, with 11 as the main contractor, 1 under a consortium/joint venture, and 20 as a subcontractor.
Company Overview:
Financial Performance:
The company’s financial trajectory showcases significant growth:
- Revenue:
- FY 2022: ₹119.64 crore
- FY 2023: ₹175.75 crore
- FY 2024: ₹241.84 crore
- Profit After Tax (PAT):
- FY 2022: ₹38.34 crore
- FY 2023: ₹50.11 crore
- FY 2024: ₹59.73 crore
As of September 30, 2024, the company reported assets totaling ₹220.35 crore and a net worth of ₹188.46 crore.
Utilization of IPO Proceeds:
The net proceeds from the IPO are intended for:
- Working Capital Requirements: ₹150 crore
- General Corporate Purposes: Remaining funds
The allocation for working capital is planned as ₹50 crore in the current financial year and ₹100 crore in the next financial year.
Order Book and Projects:
As of October 2023, Denta Water has 22 ongoing projects with a total contract value of ₹984.23 crore, primarily in water management. The outstanding order book stands at ₹772.94 crore.
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Investment Considerations:
While the company’s financials and growth prospects appear robust, potential investors should be aware of certain factors:
- Promoter Background: One of the promoters, C Mruthyunjaya Swamy, a former secretary of the Public Works Department in Karnataka, has faced allegations and legal proceedings related to corruption, which were subsequently disposed of.
- High Profit Margins: The company reports unusually high EBITDA and PAT margins for the EPC sector, which may warrant further scrutiny.
Conclusion:
Denta Water and Infra Solutions Ltd’s IPO presents an opportunity to invest in a growing company within the water management infrastructure sector. However, potential investors should conduct thorough due diligence, considering both the company’s financial performance and the associated risks.
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