Denta Water And Infra Solutions IPO — Should You Subscribe? Read Anand Rathi's Analysis

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Anand Rathi 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.

Objects of the Issue

• Meet working capital requirements.

• General corporate purposes.

Valuation

Denta Water and Infra Solutions has established expertise in water management projects with special focus on ground water recharging with expertise in in-house designing and engineering of water management infrastructure projects and strong order book along with efficient business model.

At the upper price band company is valuing at P/E of 13.14x, with an EV/Ebitda of 9.13x and market cap of Rs 784. 9 crore post issue of equity shares and return on net worth of 36.36%.

We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO.

Click on the attachment to read the full IPO report:

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