Concord Enviro Systems IPO: Anchor Issue Fetches Rs 150 Crore, Majorly From Mutual Funds

Concord Enviro Systems Ltd. mopped up Rs 150 crore from anchor investors on Wednesday ahead of initial public offering. The company issued 21.4 lakh shares to 18 investors at Rs 701 apiece, according to an exchange filing.

Out of the total allocation, 64.65% went to six domestic mutual funds, which have applied through a total of 10 schemes. These include ICICI Prudential, LIC Mutual Fund, Invesco India and PGIM India Mutual Fund.

ICICI Innovation Fund, Kotak Infrastructure Fund and Economic Reform Fund and Bandhan Small Cap Fund secured a 12.66% portion each for Rs 19 crore. Societe Generale, BNP Paribas and Morgan Stanley are the only foreign investors in the anchor round.

Motilal Oswal Investment Advisors Ltd. and Equirus Capital Pvt. are the book running lead managers for the deal.

Concord Enviro Systems' Rs 500.3-crore IPO, which is scheduled to open on Thursday, consists of a fresh issue of Rs 175 crore and an offer for sale of Rs 325.3 crore.

The price band for the IPO has been set between Rs 665 and Rs 701 per share. The market value at the upper end of the price band is Rs 1,451 crore.

Promoters divesting shares in the OFS include Prayas Goel, Prerak Goel, Pushpa Goel, Nidhi Goel and Namrata Goel.

The company is a global provider of water and wastewater treatment and reuse solutions, including zero-liquid-discharge technology. It has in-house capabilities to develop solutions across the entire value chain, including designing, manufacturing, installation and commissioning, operation and maintenance, and digitalisation solutions, including internet of things.

Proceeds from the IPO of up to Rs 25 crore will be invested in Concord Enviro FZE (CEF) for setting up a new assembly unit for water treatment systems, and Rs 10.505 crore will be invested in Rochem Separation Systems (India) Pvt. to expand its manufacturing facilities and support activities.

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