Concord Enviro Systems IPO: The initial public offering of environmental engineering solutions firm Concord Enviro Systems Ltd, which opened on Thursday, received a 0.6 times subscription on the first day of bidding. The price band of the IPO has been fixed in the range of Rs 665 to Rs 701 per share.
Till 5:00 pm on the second day on Friday, the IPO received a 1.24 times subscription garnering bids for 62,32,842 shares as against the 50,15,356 shares on offer. So far, the retail category has received a 2.01 times subscription, while the non-institutional category (NII) got a 1.01 times subscription. The QIB category received a 0.01 times subscription.
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Concord Enviro Systems IPO GMP
As per market observers, the unlisted shares of Concord Enviro Ltd continue to trade at Rs 763 in the grey market, reflecting a premium of Rs 62 (8.84%) over the upper price band of Rs 701. This indicates a positive listing gain for investors on 27 December. The 8.84 GMP is significantly higher than the 9.99 percent grey market premium recorded in the morning. The GMP is subject to sentiments in the market and may change.
About the Concord Enviro Systems IPO
- The IPO comprises a fresh issuance of equity shares worth Rs 175 crore and an Offer-for-Sale (OFS) of 46.41 lakh equity shares valued at Rs 325.33 crore, at the upper end of the price band, by promoters and an investor.
- This aggregates the issue size to Rs 500.33 crore. Those selling shares in the OFS are promoters — Prayas Goel and Prerak Goel, promoter groups — Namrata Goel, Nidhi Goel, and Pushpa Goel — and investor AF Holdings.
Concord Enviro Systems IPO Price Band
Its price band has been fixed at Rs 665 to Rs 701 per share. The minimum lot size for an application is 21. The minimum amount of investment required by retail investors is Rs 14,721. The minimum lot size investment for small NII is 14 lots (294 shares), amounting to Rs 2,06,094, and for big NII, it is 68 lots (1,428 shares), amounting to Rs 10,01,028.
- Concord Enviro Systems has raised Rs 150 crore from anchor investors.
- Motilal Oswal Investment Advisors and Equirus Capital are the book-running lead managers to the issue.
At the upper end of the price band, the company’s market capitalization has been pegged at Rs 1,450 crore. Half of the issue has been reserved for qualified institutional buyers, 35 for retail investors, and the remaining 15 percent for non-institutional investors.
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.
Aim of the Concord Enviro Systems IPO
Proceeds from the fresh issue will be invested in Concord Enviro FZE (CEF) for setting up a new assembly unit for water treatment systems as well as its working capital requirement.
Additionally, funds will be invested in Rochem Separation Systems (India) Private Ltd to expand its manufacturing facilities and support activities, payment of debt, technology and growth initiatives, working capital requirements, and general corporate purposes.
🔸 Day 2 Subscription Updates🔔
— IPOWatch (@ipowatch_info) December 20, 2024
🔸Concord Enviro Systems Limited IPO🔔
📃Retail: 2.02x
📄HNI: 1.01x
📄QIB: 0.01x
💰Total: 1.25x
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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 the treatment of water, wastewater, 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.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗