Home

IPO

Envirotech Systems Ltd

Envirotech Systems Ltd IPO

Status: Closed

Overview

IPO date

13 Sept 2024 to 19 Sept 2024

Face value

₹ 0 per share

Price

₹ 53 to ₹56 per share

Issue Size

5,400,000 shares
(aggregating up to ₹ 30.24 Cr)

Allotment Date

20 Sept 2024

Listing at

NSE

Issue type

Book Building - SME

Sector

Engineering

Objectives of Envirotech Systems Ltd IPO

Envirotech Systems Ltd IPO Strategy

About Envirotech Systems Ltd

Envirotech Systems Limited was originally incorporated as 'Envirotech Gensets Private Limited' as a Private Limited Company vide Certificate dated February 09, 2007, issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Through Special Resolution, the Company name changed to 'Envirotech Systems Private Limited' vide fresh Certificate of Incorporation dated June 10, 2009 issued by the Registrar of Companies to the Company. Thereafter, Company got converted from a Private Limited to Public Limited and the name changed to Envirotech Systems Limited' through fresh Certificate of Incorporation, which was issued to Company by the Registrar of Companies, NCT of Delhi and Haryana dated June 3, 2022. The Company is a leading acoustic engineering organization specializing in noise measurement and control for industrial and commercial applications. At present, it is engaged in the business of customized Acoustic insulation solutions for various industries like infrastructure, automobiles, aerospace, renewable energy, cement, etc. The core idea of Envirotech to work in the space of customized Acoustic insulation solutions. Incorporated in 2007, Company set up of First Manufacturing Plant in Noida. In 2018, it expanded the Plant in Nodia to include innovative acoustical product design and manufacturing. With over 98 employees and a network of technical experts, it offer cost-effective solutions for various acoustical challenges into the industrial, commercial, architectural, and environmental markets. Apart from this, the Company's manufacturing facilities include welding, painting, and fabrication areas for large structures and equipment, which are capable of working with carbon steel, stainless steel, and alloy steel, using materials like rock wool, multiple sound dampening & absorbing materials. There skilled workforce and qualified welders ensure sustained production. The Company is proposing the Public Issue of 54,00,000 Fresh Issue Equity Shares.

Unlock Stock of the Month

T&C*

Strengths vs Risks of Envirotech Systems Ltd

Know the pros & cons

Strengths

Experienced Promoters and Management Team.
Quality Assurance of its Services.
Established relationship with existing client.
Scalable Business Model.

Risks

The Company, Promoters, Directors and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
One of the members of the Promoter group has defaulted on a personal loan with outstanding of Rs 113,225 for which proceedings in DRT has been initiated against him. One of the members of the Promoter group has defaulted on a personal loan with outstanding of Rs 113,225 for which proceedings in DRT has been initiated against him.
The Company has reported certain negative cash flows from its operating activity, investing activity and financing activity, details of which are given below.
The company does not own registered office which is used by its currently.
The Land being purchased by M/s Envirotech Systems Limited from M/s Oriental Trimex Limited has been pledged by Oriental Trimex Limited as collateral to secure a loan of approximately Rs.37.25 crore(against multiple locations properties located at Chennai, Kolkata, Greater Noida (Manufacturing Plants) & New Delhi (Residential) from Edelweiss Bank. In case of any delay in making payment there may be adverse effect on the expansion plans of the business.
The company is highly dependent on its suppliers for uninterrupted procurement and sale of the company traded goods. Any disruption of supply from such entities may affect its business operations.
The company has not made any provision regarding payment of gratuity in its restated and audited financial statements of the company.
The company has Manufacturing Facility, continued operations of its manufacturing facility is critical to the company's business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.
Substantial portion of its revenues has been dependent upon the company few customers. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability.
The company has made an application with the Registrar of Trade Marks for registration of the word and same has been under the status Objection. Any delay in receiving the approval and/or granting registration or in obtaining registration could result in loss of trademark & brand equity and the Company right to use the said trademark.
In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operates the company's business it may have a material adverse effect on its business.
The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company's business and financial condition. In addition, certain of its financing agreements involve variable interest rates and an increase in interest rates may adversely affect its results of operations, cash flows and financial condition.
There are certain discrepancies in some of its corporate records relating to forms filed with the Registrar of Companies.
The Company requires significant amounts of working capital for a continued growth. Its inability to meet the company's working capital requirements may have an adverse effect on its results of operations.
Its lenders have charge over the company movable and immoveable properties in respect of finance availed by it.
Its business, growth prospects and financial performance largely depends on its ability to obtain new contracts, and there is no assurance that the company will be able to procure new contracts.
The company has in the past entered into related party transactions and may continue to do so in the future.
The company has availed unsecured loans which are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.
Increase in costs or a shortfall in availability of the materials the company purchase could have a material adverse effect on the Company's sales, profitability and results of operations. Increase in costs or a shortfall in availability of the materials the company purchase could have a material adverse effect on the Company's sales, profitability and results of operations.
Changes in technology may affect its business by making the company equipment or products less competitive or obsolete.
There are certain non-compliances noticed in some of its records relating to filing or returns and deposit of statutory dues with the taxation and other statutory authorities.
Its insurance policies does not cover all risks, specifically risks like loss of profits, terrorism, etc. In the event of the occurrence of such events, its insurance coverage may not adequately protect the company against possible risk of loss.
All of its product verticals are competitive segments and the company faces risk of competition affecting its margins and profitability as the company scale its operations. There may be a potential impact on its profitability if any big market player enters in this industry.
The company propose to utilize a portion of the Net Proceeds for funding working capital requirements of the Company.
Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior shareholders' approval.
If the company is unable to source business opportunities effectively, its may not achieve the company's financial objectives.
Substantial portion of its revenues has been dependent upon the company few customers. The loss of any one or more of its major clients would have a material adverse effect on the company's business operations and profitability.
Its industry is labour intensive and the company's business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.
At present its manufacturing facility is not fully automated. Further any disruption in production at, or shutdown of, its manufacturing facility could adversely affect the company's business, results of operations and financial condition.
Its future funds requirements, in the form of issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
Delays or defaults in client payments could affect its operations.
Failures to manage the company inventory could have an adverse effect on its net sales, profitability, cash flow and liquidity.
Any adverse changes in regulations governing its business operations or products or the products of the company endcustomers, may adversely impact its business, prospects, results of operations and cash flows.
Its Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
Its success depends largely upon the services of the company Directors, Promoter and other Key Managerial Personnel and its ability to attract and retain them. Demand for Key Managerial Personnel in the industry is intense and its inability to attract and retain Key Managerial Personnel may affect the operations of the Company.
The company has not commissioned an industry report for the disclosures made in the chapter titled ndustry Overview' and made disclosures on the basis of publicly available data and such data has not been independently verified by the company.
Certain data mentioned in this Red Herring Prospectus has not been independently verified.
Its Promoter, Directors and Key Management Personnel may have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.
The company has not identified any alternate source of raising the funds mentioned as its `Objects of the Issue'. Any shortfall or delay in raising/meeting the same could adversely affect its growth plans, operations and financial performance.
Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.
There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its management and the company board of Directors, though it shall be monitored by its Audit Committee.
Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
Its customers does not commit to long-term or continuing contracts and may cancel or modify their orders or postpone or default in their payments. Any cancellation, modification, payment postponement or payment default in regard to its order book could materially harm the company cash flow position, revenues and earnings.
Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
If the services the company provide as a part of its contracts with its customers are found to be deficient, the company may lose its customers and may be subject to product liability claims or claims alleging deficiency in service, which may also cause damage to its reputation and/or adversely affect the company's business, results of operations.
Any inability to perform some contract or other obligations for which the company has given bank guarantees, could adversely affect its business, financial condition, cash flows and credit rating.
Labour unrests may result in activities slowdowns and increased employee costs, which may adversely impact its business and results of operations.
Inability to update the designs and engineering and to formulate cost effective strategy may have an adverse effect on its profitability and have an adverse effect on its business operations.
A shortage or non-availability of essential utilities such as power and fuel could affect its manufacturing operations and have an adverse effect on the company's business, results of operations.
Its may be unable to detect, deter and prevent all instances of fraud or other misconduct committed by the company employees which may have a material adverse effect on its business, reputation, results of operations, financial condition and cash flows.

How to check the allotment status of Envirotech Systems Ltd IPO?

Follow the steps

Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

IPO reads

Stay updated with the latest IPO developments

View All

December 9, 2024 | 5 min read

11 IPOs This Week: ₹18,482 Crores in Focus – GMP, SWOT, and All You Need to Know!

December 2, 2024 | 5 min read

Upcoming IPOs in December 2024: A Packed Month for Investors

November 25, 2024 | 5 min read

SME IPO Rush: 6 Issues Worth ₹410 Cr. Know Key Details Here!

October 25, 2024 | 5 min read

Waaree Energies IPO: GMP Soars 106% Amid 76.34x Subscription – Check Your Allotment Status!

October 22, 2024 | 5 min read

Upcoming IPOs: 9 Public Issues Set to Raise ₹10,984.8 Cr – Key Insights Inside!

October 17, 2024 | 5 min read

Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons Why

September 6, 2024 | 5 min read

Bajaj Housing Finance IPO: All You Need to Know

October 17, 2024 | 5 min read

Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons Why

August 26, 2024 | 5 min read

Premier Energies IPO: Key Details Ahead of the ₹2,830.40 Cr Issue Launch

More on IPOs

Navigate your way to other IPO resources

Current IPOs

Upcoming IPOs

Closed IPOs

Listed IPOs

Performing IPOs

Latest videos on IPOs

IPO highlights & details!

FAQs on IPO

Get answers to all your questions here!

The IPO opens on 13 Sept 2024 & closes on 19 Sept 2024.

Envirotech Systems Ltd IPO will close on 19 Sept 2024.

Experienced Promoters and Management Team.
Quality Assurance of its Services.
Established relationship with existing client.
Scalable Business Model.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Manoj Kumar Gupta	9147650	68.32	9147650	48.68
2	Sindhu Gupta	3770000	28.16	3770000	20.06

The Company, Promoters, Directors and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
One of the members of the Promoter group has defaulted on a personal loan with outstanding of Rs 113,225 for which proceedings in DRT has been initiated against him. One of the members of the Promoter group has defaulted on a personal loan with outstanding of Rs 113,225 for which proceedings in DRT has been initiated against him.
The Company has reported certain negative cash flows from its operating activity, investing activity and financing activity, details of which are given below.
The company does not own registered office which is used by its currently.
The Land being purchased by M/s Envirotech Systems Limited from M/s Oriental Trimex Limited has been pledged by Oriental Trimex Limited as collateral to secure a loan of approximately Rs.37.25 crore(against multiple locations properties located at Chennai, Kolkata, Greater Noida (Manufacturing Plants) & New Delhi (Residential) from Edelweiss Bank. In case of any delay in making payment there may be adverse effect on the expansion plans of the business.
The company is highly dependent on its suppliers for uninterrupted procurement and sale of the company traded goods. Any disruption of supply from such entities may affect its business operations.
The company has not made any provision regarding payment of gratuity in its restated and audited financial statements of the company.
The company has Manufacturing Facility, continued operations of its manufacturing facility is critical to the company's business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.
Substantial portion of its revenues has been dependent upon the company few customers. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability.
The company has made an application with the Registrar of Trade Marks for registration of the word and same has been under the status Objection. Any delay in receiving the approval and/or granting registration or in obtaining registration could result in loss of trademark & brand equity and the Company right to use the said trademark.
In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operates the company's business it may have a material adverse effect on its business.
The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company's business and financial condition. In addition, certain of its financing agreements involve variable interest rates and an increase in interest rates may adversely affect its results of operations, cash flows and financial condition.
There are certain discrepancies in some of its corporate records relating to forms filed with the Registrar of Companies.
The Company requires significant amounts of working capital for a continued growth. Its inability to meet the company's working capital requirements may have an adverse effect on its results of operations.
Its lenders have charge over the company movable and immoveable properties in respect of finance availed by it.
Its business, growth prospects and financial performance largely depends on its ability to obtain new contracts, and there is no assurance that the company will be able to procure new contracts.
The company has in the past entered into related party transactions and may continue to do so in the future.
The company has availed unsecured loans which are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.
Increase in costs or a shortfall in availability of the materials the company purchase could have a material adverse effect on the Company's sales, profitability and results of operations. Increase in costs or a shortfall in availability of the materials the company purchase could have a material adverse effect on the Company's sales, profitability and results of operations.
Changes in technology may affect its business by making the company equipment or products less competitive or obsolete.
There are certain non-compliances noticed in some of its records relating to filing or returns and deposit of statutory dues with the taxation and other statutory authorities.
Its insurance policies does not cover all risks, specifically risks like loss of profits, terrorism, etc. In the event of the occurrence of such events, its insurance coverage may not adequately protect the company against possible risk of loss.
All of its product verticals are competitive segments and the company faces risk of competition affecting its margins and profitability as the company scale its operations. There may be a potential impact on its profitability if any big market player enters in this industry.
The company propose to utilize a portion of the Net Proceeds for funding working capital requirements of the Company.
Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior shareholders' approval.
If the company is unable to source business opportunities effectively, its may not achieve the company's financial objectives.
Substantial portion of its revenues has been dependent upon the company few customers. The loss of any one or more of its major clients would have a material adverse effect on the company's business operations and profitability.
Its industry is labour intensive and the company's business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.
At present its manufacturing facility is not fully automated. Further any disruption in production at, or shutdown of, its manufacturing facility could adversely affect the company's business, results of operations and financial condition.
Its future funds requirements, in the form of issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
Delays or defaults in client payments could affect its operations.
Failures to manage the company inventory could have an adverse effect on its net sales, profitability, cash flow and liquidity.
Any adverse changes in regulations governing its business operations or products or the products of the company endcustomers, may adversely impact its business, prospects, results of operations and cash flows.
Its Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
Its success depends largely upon the services of the company Directors, Promoter and other Key Managerial Personnel and its ability to attract and retain them. Demand for Key Managerial Personnel in the industry is intense and its inability to attract and retain Key Managerial Personnel may affect the operations of the Company.
The company has not commissioned an industry report for the disclosures made in the chapter titled ndustry Overview' and made disclosures on the basis of publicly available data and such data has not been independently verified by the company.
Certain data mentioned in this Red Herring Prospectus has not been independently verified.
Its Promoter, Directors and Key Management Personnel may have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.
The company has not identified any alternate source of raising the funds mentioned as its `Objects of the Issue'. Any shortfall or delay in raising/meeting the same could adversely affect its growth plans, operations and financial performance.
Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.
There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its management and the company board of Directors, though it shall be monitored by its Audit Committee.
Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
Its customers does not commit to long-term or continuing contracts and may cancel or modify their orders or postpone or default in their payments. Any cancellation, modification, payment postponement or payment default in regard to its order book could materially harm the company cash flow position, revenues and earnings.
Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
If the services the company provide as a part of its contracts with its customers are found to be deficient, the company may lose its customers and may be subject to product liability claims or claims alleging deficiency in service, which may also cause damage to its reputation and/or adversely affect the company's business, results of operations.
Any inability to perform some contract or other obligations for which the company has given bank guarantees, could adversely affect its business, financial condition, cash flows and credit rating.
Labour unrests may result in activities slowdowns and increased employee costs, which may adversely impact its business and results of operations.
Inability to update the designs and engineering and to formulate cost effective strategy may have an adverse effect on its profitability and have an adverse effect on its business operations.
A shortage or non-availability of essential utilities such as power and fuel could affect its manufacturing operations and have an adverse effect on the company's business, results of operations.
Its may be unable to detect, deter and prevent all instances of fraud or other misconduct committed by the company employees which may have a material adverse effect on its business, reputation, results of operations, financial condition and cash flows.

The Issue type of Envirotech Systems Ltd is Book Building - SME.

The minimum application for shares of Envirotech Systems Ltd is 2000.

The total shares issue of Envirotech Systems Ltd is 5400000.

Initial public issue of upto 54,00,000 equity shares of face value of Rs. 10/- each of Envirotech Systems Limited ("ESL" or "The Company") for cash at a price of Rs. 56 per equity share (including a share premium of Rs. 46 per equity share) ("Issue Price") aggregating to Rs. 30.24 crores, of which 7,02,000 equity shares of face value of Rs. 10/- each at a price of Rs. 56 aggregating to Rs. 3.93 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion") and net issue to public of 46,98,000 equity shares of face value of Rs. 10/- each at a price of Rs. 56 aggregating to Rs. 26.31 crores (hereinafter referred to as the "Net Issue") the issue and the net issue will constitute 28.74 % and 25 % respectively of the post issue paid up equity share capital of the company. The Offer Price is Rs. 56 per equity share of face value of Rs. 10 each. The Offer Price is 5.6 times of the face value of the equity shares. Bid cane be made for a minimum of 2000 equity shares and in multiples of 2000 equity shares thereafter.

Envirotech Systems Ltd IPOENVIRO

Objectives of Envirotech Systems Ltd IPO

Envirotech Systems Ltd IPO Strategy

About Envirotech Systems Ltd

Strengths vs Risks of Envirotech Systems Ltd

Strengths

Risks

How to check the allotment status of Envirotech Systems Ltd IPO?

IPO reads

More on IPOs

Latest videos on IPOs

FAQs on IPO

When does Envirotech Systems Ltd IPO open?

What does Envirotech Systems Ltd do?

What is the closed date of Envirotech Systems Ltd IPO?

What are the strengths of Envirotech Systems Ltd?

What are the promoter details of Envirotech Systems Ltd IPO?

What are the risks of Envirotech Systems Ltd?

What is the issue type of Envirotech Systems Ltd IPO?

What is the minimum application for shares of Envirotech Systems Ltd?

Total shares issue of Envirotech Systems Ltd IPO?

What are the objectives of Envirotech Systems Ltd IPO?

Envirotech Systems Ltd IPO