Denta Water And Infra Solutions IPO — Price Band, Allotment And Listing Date, Financials And More: DRChoksey

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DRChoksey Research Report

Denta Water and Infra Solutions Ltd. will launch its initial public offering on January 22 and the offer closes for subscription on Jan. 24. A key players in the field of water EPC has fixed the price band in the range of 279 to Rs 294 per share.

The Rs 220.5 crore IPO comprises entirely of fresh issue with no offer-for-sale component. The minimum order lot for bidding is 35.

The allotment for the Denta Water And Infra Solutions IPO is expected to be finalized on jan. 27.

The shares will be listed on both the National Stock Exchange and the BSE on  Jan 29.

Objects of the Offer

1. To meet the working capital requirements.

2. General corporate purposes.

Outlook and Valuation:

Denta Water and Infra Solutions is positioned for growth in the water infrastructure sector, bolstered by a substantial order book and significant government contracts. Specializing in groundwater recharge and irrigation projects, the company is poised to benefit from the government's focus on water conservation.

However, it faces market pressures and competition that could impact profitability. The success of key projects like the KC Valley and Multi Village schemes depends on continued government support and effective execution, linking the company's prospects to external economic conditions.

Despite a strong revenue growth at a CAGR of 41% from FY22 to FY24, both Ebitda and PAT margins, along with return ratios, are declining, indicating challenges in maintaining financial efficiency. Given these factors, we assign ‘Neutral’ rating.

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