Denta Water and Infra Solutions IPO opens for subscription on January 22, 2025, and will close on January 24, 2025. The price band has been set between ₹279 and ₹294 per share. The company aims to raise ₹220.50 crore through this initial public offering (IPO), primarily to fund its water management projects and infrastructure services.
About Denta Water and Infra Solutions
Founded in 2016, Denta Water and Infra Solutions Limited has made a significant impact in the field of water engineering, procurement, and construction (EPC) services. Over the years, it has built a reputation for executing large-scale water-related projects, including groundwater recharge through recycled water. Some of its notable projects include the Byrapura and Hiremagaluru Lift Irrigation Scheme (LIS) and the Karagada LIS Project. The company is actively involved in various infrastructure projects, including railways and highways, further expanding its presence in the industry.
Denta Water and Infra IPO: Key Highlights
- IPO Opening Date: The Denta Water IPO opens for subscription on January 22, 2025, and closes on January 24, 2025.
- Price Band: The Denta Water IPO has a price band of ₹279 to ₹294 per share with a lot size of 50 shares. Investors can bid for a minimum of one lot and in multiples thereafter.
- Total Issue Size: The company is offering a fresh issue of 7.5 million shares. At the upper end of the price band, the total size of the Denta Water IPO will be ₹220.50 crore.
- IPO Objective: Denta Water intends to use the proceeds from the IPO to meet its working capital needs. ₹150 crore will be allocated for working capital requirements, with ₹50 crore to be used in the current financial year and ₹100 crore for the next financial year.
- Promoters: The promoters of the company include Sowbhagyamma, Sujith TR, C Mruthyunjaya Swamy, and Hema HM. These individuals have been integral to Denta Water’s growth and success in the water infrastructure sector.
- Market Peers: According to the Red Herring Prospectus (RHP), Denta Water’s listed industry peers include VA Tech Wabag (P/E ratio of 38.41) and EMS (P/E ratio of 27.47).
- Anchor Investors: The allocation for anchor investors is scheduled for January 21, 2025. These institutional investors typically subscribe to a large portion of the Denta Water IPO before it opens for retail investors.
- Reservation: The Denta Water IPO reserves 50% of shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors.
- GMP (Grey Market Premium): As of today, the Denta Water IPO GMP stands at ₹165, suggesting a strong investor sentiment for the IPO. This means Denta Water shares are currently trading at a premium of ₹165 in the grey market, indicating a potential listing price of ₹459, which is 56.12% higher than the upper end of the IPO price band.
- Listing Date and Allotment: The shares of Denta Water and Infra Solutions IPO are expected to be listed on both the BSE and NSE on January 29, 2025. The basis of allotment will be finalized on January 27, and refunds will be initiated on January 28. Shares will be credited to the demat accounts of allottees on the same day.
Investment Opportunity and Market Sentiment
The Denta Water and Infra IPO presents a unique opportunity for investors looking to enter the water infrastructure and management sector, which has been seeing steady demand due to the country’s growing need for water solutions. Given the positive sentiment reflected in the grey market premium and the company’s solid track record in executing water and infrastructure projects, many investors are optimistic about the IPO’s performance.
The projected listing price suggests a potential gain of 56.12% over the IPO price, which is an attractive proposition for retail investors. However, as always, it is important for investors to assess the risks associated with any IPO, especially considering the volatility in the stock market.
Conclusion
The Denta Water and Infra Solutions IPO is set to raise ₹220.50 crore, with a price band of ₹279 to ₹294 per share. The strong grey market premium and the company’s solid track record in executing water and infrastructure projects make this Denta Water IPO an appealing option for investors. The IPO opens on January 22, 2025, and closes on January 24, 2025, with shares expected to be listed on January 29, 2025. Investors are advised to carefully evaluate the issue before making an investment.
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