Concord Enviro Systems IPO: Subscribed 10.67 Times On Day 3; Check GMP, Price Band And More
The Concord Enviro Systems IPO price band has been set between Rs 665 and Rs 701 per share.
Concord Enviro Systems Ltd.'s initial public offering was subscribed 10.67 times on the final day. The issue was subscribed 4.34 times on its second day, led by demand from retail investors.
The issue saw bids worth around Rs 3,750 crore for an IPO seeking to raise Rs 500.3 crore.
The grey market premium of Concord is at Rs 50 as of 6:00 p.m., according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 741 per share, implying a premium of 5.71%.
The book building offer was subscribed 59% on its first day of bidding on Thursday, with only the retail portion fully subscribed. The Rs 500.3-crore IPO 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.
Motilal Oswal Investment Advisors Ltd. and Equirus Capital Pvt. are the lead book running managers for the issue. The allotment is expected to be finalised on Dec. 24.
Concord Enviro Systems IPO Details
Issue opens: Dec. 19.
Issue closes: Dec. 23.
Issue price: Rs 665–701 per share.
Offer for sale: Rs 325.3 crore.
Fresh issue: Rs 175 crore.
Total issue size: Rs 500.3 crore.
Lot size: Minimum 21 shares.
Use Of Proceeds
Investment in wholly owned subsidiary Concord Enviro FZE for financing its capital-expenditure requirements for a greenfield project to develop an assembly unit for systems and plants for treatment of water, waste water and related membrane modules.
Investment in wholly owned subsidiary Rochem Separation Systems (India) Pvt. for financing its capex requirements for the brownfield project to expand the manufacturing facilities, storage and supporting activities.
Investment in Concord Enviro FZE for prepayment or repayment of all or a portion of certain outstanding borrowings, as well as working-capital requirements.
Investment in joint venture Roserve Enviro Pvt. to grow pay-per-use/pay-as-you-treat business.
Investment in technology and other growth initiatives for access to new markets.
Business
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.
The sources through which the business generates revenue include:
Sale of systems and plants.
Operations and maintenance of installed plants and,
Supplying consumables and spares for installed plants.
Concord Enviro Systems IPO: Key Risks
The capacity utilisation has been low, which exposes the company to higher production costs and lower profitability.
The business is dependent on and derives a substantial portion of its revenue (more than 50%) from its top 10 customers.
The company's subsidiaries have incurred losses in fiscals 2024 and 2022.
If the company does not successfully develop new wastewater treatment membranes, systems and plants in a timely and cost-effective manner, the business operations may be affected.
Concord Enviro Systems IPO: Subscription Status Day Three
The IPO has been subscribed 10.67 times as of 6:25 p.m.
Qualified institutional buyers: 17.32 times.
Non-institutional investors: 14.20 times.
Retail investors: 5.56 times.
Concord Enviro Systems IPO GMP Today
The grey market premium of Concord declined to Rs 50 as of 6:00 p.m., according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 751 per share, implying a premium of 7.13%.
GMP is not an official price quote for the stock and is based on speculation.
Watch IPO Adda Here
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
