AF Holdings backed Concord Enviro files draft papers with SEBI to raise ₹192 crore via IPO

Concord Enviro Systems, a provider of water and wastewater treatment solutions backed by Mauritius-based AF Holdings, has submitted preliminary documents to the capital markets regulator SEBI for an initial public offering (IPO).

The IPO includes a fresh issue of equity shares valued at ₹192.3 crore and an offer-for-sale (OFS) of 51,94,520 equity shares by existing shareholders.

AF Holdings, which holds a 39.07 percent stake as the sole investor in the company, will be selling 47.4 lakh equity shares through an OFS, while the Goel family will offload the remaining 4,54,520 equity shares.

The Goel family, the promoters, currently holds 60.93 percent of the shareholding in the Mumbai-based company.

The company, a provider of wastewater treatment and zero liquid discharge (ZLD) solutions, served over 353 domestic and 24 international customers across various industries, including pharmaceuticals, chemicals, food and beverage, defense and energy, automotive and auto ancillaries, steel, and textiles, in fiscal year 2024.

Diageo Mexico Operaciones, S.A. de C.V., Grasim Industries, AB Mauri, Anthem Biosciences, Bhopal Glues and Chemicals, Kasyap Sweetners, LANXESS India, Puja Spintex, SFC Environmental Technologies, SMS, and Tagros Chemicals India are among the customers it has served.

Concord Enviro Systems operates two manufacturing facilities located in India and the UAE. Supported by an in-house R&D team of 21 employees, the company had been granted four patents in India and filed nine more patent applications as of the fiscal year 2024.

About the company

The Goel family-owned company, which competes with publicly listed peers such as VA Tech Wabag, Triveni Engineering, Ion Exchange, Praj Industries, and Thermax, delivered a strong financial performance in the fiscal year ending March 2024. The company's profit surged 7.5 times to ₹41.4 crore, while revenue increased by 44.8 percent to ₹496.8 crore compared to the previous year. However, in FY23, profit stood at ₹5.5 crore, down from ₹16.5 crore in FY22, with revenue growing only 4.2 percent to ₹343.2 crore during the same period.

For fiscal 2024, EBITDA (earnings before interest, tax, depreciation, and amortization) jumped 57.4 percent to ₹68.2 crore, with a margin expansion of 110 basis points to 13.7 percent compared to the previous fiscal year. In contrast, EBITDA for FY23 had declined by 20.2 percent to ₹43.4 crore compared to the prior year.

Motilal Oswal Investment Advisors and Equirus Capital Private are serving as book-running lead managers for the issue, while Link Intime India is acting as the registrar for the offer.