Concord Enviro Systems debuted robustly on the stock exchanges on Friday, December 27, 2024, offering a promising start for its investors. The company’s shares were listed at ₹832 on the BSE, reflecting a significant 18.69% premium over the issue price of ₹701 per share. On the NSE, the stock opened at ₹826, a premium of 17.83%, solidifying the strong demand for this initial public offering (IPO).
Stellar IPO Subscription Numbers
The IPO, which was open for subscription from December 19 to December 23, saw an overwhelming response, being subscribed 10.67 times. The issue received bids for 5.35 crore shares, far exceeding the 50.15 lakh shares on offer.
Breaking down the subscription:
- Qualified Institutional Buyers (QIBs): 17.32 times
- Non-Institutional Investors (NIIs): 14.2 times
- Retail Investors: 5.56 times
This enthusiastic participation underscores the market’s confidence in Concord Enviro Systems’ growth prospects.
IPO Details and Pricing
Priced in the range of ₹665-701 per share, the IPO aimed to raise ₹500 crore at the upper end of the band. The issue was a combination of fresh equity shares worth ₹175 crore and an offer-for-sale (OFS) aggregating ₹325.33 crore.
Prominent stakeholders, including promoters Namrata Goel, Nidhi Goel, Pushpa Goel, Prayas Goel, and Prerak Goyal, alongside investor-selling shareholder AF Holdings, reduced their stakes via the OFS.
Strategic Objectives of the IPO
Proceeds from the IPO are earmarked for strategic expansions and operational enhancements:
- Subsidiary Investments: Funding for wholly owned subsidiaries, Concord Enviro FZE and Rochem Separation Systems (India) Private Limited.
- Project Financing: Capital expenditure for greenfield and brownfield projects in the UAE and Vasai.
- Capacity Expansion: Enhancing manufacturing capabilities and addressing working capital requirements.
- Technological Advancements: Investments in technology upgrades and joint ventures like Reserve Enviro Private Limited to access new markets.
- Debt Prepayment and Corporate Purposes: Supporting overall financial health and growth initiatives.
Financial Performance Snapshot
Concord Enviro Systems has demonstrated impressive growth in recent years:
- Revenue: Increased by 46% YoY to ₹627.68 crore in FY24.
- Profit After Tax (PAT): Jumped 655% YoY to ₹41.44 crore in FY24.
Despite the positive revenue and profit growth, analysts have raised concerns over the company’s negative cash flows of ₹42 crore in FY24. This factor will be closely monitored by investors as the company progresses.
About Concord Enviro Systems
Concord Enviro Systems is a global leader in water and wastewater treatment solutions, specializing in cutting-edge zero liquid discharge technology. With in-house capabilities, the company covers the entire value chain from design to digitalization, including:
- Designing, manufacturing, and commissioning systems.
- Operation and maintenance of installed plants.
- Supplying consumables and spares.
The company’s diversified revenue streams and robust technological foundation position it as a key player in sustainable water management solutions.
