Enviro Infra shares make strong debut, list at 49% premium over IPO price

Enviro Infra Engineers made a strong stock market debut on Friday, listing at a premium of nearly 49% over the issue price.
The shares opened at Rs 220 on the National Stock Exchange (NSE), marking a 48.64% jump from the IPO price of Rs 148. On the Bombay Stock Exchange (BSE), the stock listed at Rs 218, reflecting a 47.29% premium. This is even better than what the grey market premium had indicated.
The Rs 650-crore IPO, priced between Rs 140 and Rs 148 per share, was open for subscription from November 22 to November 26 and saw overwhelming demand.
It received bids for 2,76,83,13,747 shares against the 3,07,93,600 shares on offer, translating to an overall subscription of 89.90 times.
The portion reserved for qualified institutional buyers was subscribed 157.05 times, while non-institutional investors subscribed 153.80 times. Retail investors’ portion was subscribed 24.48 times.
Ahead of the IPO, the company raised Rs 195 crore from anchor investors. The offering included a fresh issue of 3.87 crore equity shares and an offer for sale (OFS) of 52.68 lakh shares by promoters.
The fresh issue proceeds will be used to address several financial needs: Rs 181 crore for working capital, Rs 100 crore for debt repayment, and Rs 30 crore to fund its subsidiary, EIEL Mathura Infra Engineers, for the construction of a 60-million-litre-per-day sewage treatment plant in Mathura, Uttar Pradesh.
A portion will also be allocated for general corporate purposes.
Enviro Infra Engineers specialises in turnkey projects for water and wastewater treatment plants, sewage systems, and water supply schemes for government authorities.
The company’s treatment processes are zero-liquid-discharge compliant, allowing treated water to be repurposed for horticulture, washing, and industrial processes.
Hem Securities served as the sole book-running lead manager for the IPO.