If you’re interested in the stock market or companies specializing in water solutions and infrastructure development, you might want to learn more about Denta Water and Infra Solutions Ltd’s IPO. As it opens today for subscription, the issue size of ₹220.50 crore has generated significant interest among investors.
Yesterday, it announced that it had secured slightly more than ₹66 crore from anchor investors before its IPO. Here’s a detailed breakdown of everything you need to know about this IPO.
IPO Details of Denta Water and Infra
| Offer Price | ₹279 to ₹294 per share |
| Face Value | ₹10 per share |
| Opening Date | 22 January 2025 |
| Closing Date | 24 January 2025 |
| Total Issue Size (in Shares) | 75,00,000 |
| Total Issue Size (in ₹) | ₹220.50 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 50 Shares |
| Listing at | BSE, NSE |
Denta Water and Infra Solutions Ltd is launching an IPO worth ₹220.50 crore, consisting of a fresh issuance of 75 lakh equity shares priced at the upper band of ₹294 per share. The shares will be listed on both the BSE and NSE, with the allotment expected to be finalized on Monday, January 27, 2025, and a tentative listing date set for Wednesday, January 29, 2025.
Allocation of Shares
Retail investors can apply for a minimum of 50 shares of Denta Water and Infra IPO, requiring an investment of ₹14,700, with a maximum limit of 650 shares, amounting to ₹1,91,100. Small High-Net-Worth Individuals (S-HNIs) can invest a minimum of 700 shares for ₹2,05,800, with a cap of 3,400 shares, amounting to ₹9,99,600. Large High-Net-Worth Individuals (B-HNIs) have a minimum investment of 3,450 shares, requiring ₹10,14,300.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 50 | ₹14,700 |
| Retail (Max) | 13 | 650 | ₹1,91,100 |
| S-HNI (Min) | 14 | 700 | ₹2,05,800 |
| S-HNI (Max) | 68 | 3,400 | ₹9,99,600 |
| B-HNI (Min) | 69 | 3,450 | ₹10,14,300 |
Objectives of the Denta Water and Infra IPO
The net proceeds from the IPO will be utilized for the following purposes:
Working Capital Requirements: To fund the company’s operations and business expansion.
General Corporate Purposes: Utilization as per applicable laws for business growth and development.
Grey Market Premium (GMP)
The Denta Water IPO Grey Market Premium (GMP) currently stands at ₹165, indicating a strong demand. Based on the IPO price of ₹294, the estimated listing price is projected to be ₹459, reflecting a 56.12% premium. The positive GMP suggests strong investor confidence and potential for a solid listing. Source: Mint
Company Overview
Incorporated in 2016, Denta Water and Infra Solutions Ltd is a leading player in water and infrastructure solutions. The company specializes in designing, installing, and commissioning water management projects, focusing on groundwater recharge.
Key projects executed:
- Byrapura Project
- Hiremagaluru LIS
- KC Valley Project
These projects have significantly contributed to Bengaluru’s wastewater management and the Jal Jeevan Mission. The company owns 98 acres of agricultural land in Madikeri, Karnataka, where it cultivates coffee, pepper, and cardamom. Additionally, it operates a beach resort in Udupi, generating revenue through a facility management agreement.
Service Offerings:
- Preliminary investigations and reconnaissance
- Feasibility studies
- Planning and project formulation
- Field surveys and soil testing
- Design services
- Tender bidding consultancy
- Project management and construction supervision
- Operation and maintenance guidelines
- Engineering procurement consultancy
- Turnkey projects
As of November 30, 2024, the company has successfully executed 32 water management projects, comprising:
- 11 as the main contractor
- 1 in a joint venture
- 20 as a sub-contractor
Denta Water is also involved in infrastructure projects across railways and highways.
Financials:
Revenue for the period ending September 30, 2024, was recorded at ₹98.51 Cr., which is lower than the previous fiscal year’s figure of ₹241.84 Cr. as of March 31, 2024, but shows a steady upward trend when compared to ₹175.75 Cr. in March 2023 and ₹119.64 Cr. in March 2022. The company’s profitability has also seen an upward trajectory over the years.
Profit after tax for the half-year ending September 30, 2024, reached ₹24.2 Cr., following ₹59.73 Cr. for the full year ending March 31, 2024, up from ₹50.11 Cr. in March 2023 and ₹38.34 Cr. in March 2022. Net worth has shown consistent growth, reaching ₹188.46 Cr. as of September 30, 2024, up from ₹164.26 Cr. in March 2024, ₹104.55 Cr. in March 2023, and ₹54.43 Cr. in March 2022.
SWOT Analysis of Denta Water and Infra Solutions Ltd
| STRENGTHS | WEAKNESSES |
| Strong Backing: Supported by NTPC Limited, ensuring financial and operational reliability. Large Portfolio: A diversified renewable energy portfolio of 14,696 MW across solar and wind projects. Execution Expertise: Proven track record in large-scale renewable energy projects. | Sector Dependency: Heavily reliant on the renewable energy sector. It is making it vulnerable to sector-specific risks. Revenue Concentration: A significant portion of revenue depends on key off-takers. |
| OPPORTUNITIES | THREATS |
| Rising Demand for Renewable Energy: With an increasing global focus on sustainable energy, the company is well-positioned to capitalize on the demand. Government Support: Strong government push towards renewable energy adoption and infrastructure development. | Market Competition: Intense rivalry from established and emerging players in the renewable energy space. Regulatory Risks: Changes in government policies or tariffs could impact revenue streams. |
Denta Water and Infra Solutions Ltd’s IPO India’s growing water infrastructure sector. The company is poised for growth with a solid track record, diversified business model, and promising financial performance. However, investors should consider the company’s dependence on government projects and working capital requirements before investing.
The IPO allotment results are expected on January 27, 2025, and the shares will tentatively list on January 29, 2025, on both the BSE and NSE. Stay tuned for further updates and market trends to make an informed investment decision.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
