The initial public offering of Effwa Infra & Research Ltd is all set to hit the D-Street tomorrow (Friday, July 5). The issue, with a price band in the range of ₹78 to ₹82 per share, will close on Tuesday, July 9. The floor price is 7.8 times the face value and cap price is 8.2 times of the face value of the equity shares. A minimum of 1600 shares, as well as multiples of those shares, are up for bid.
Effwa Infra IPO has set aside 50% of the net offer for Qualified Institutional Buyers (QIBs), 35% of the net offer has been allocated to retail investors, and non-institutional investors has been reserved 15%. The market maker portion has been 3,24,800 equity shares or 5.19% of the offer.
The company works in the areas of solid waste treatment and disposal, ventilation systems, hazardous waste management, water treatment plants, industrial and sewage effluent treatment, engineering, consulting, procurement, construction, and integrated project management services for the control of water pollution.
Furthermore, the organisation serves as advisers and consultants, offering a variety of services including project management, equipment acquisition, finance, and project implementation.
The corporation works in eight states, including a Special Economic Zone, and both the domestic and international markets. Based on sales for the fiscal years that concluded on March 31, 2024, 2023, and 2022, these areas comprise Andhra Pradesh, Chhattisgarh, Gujarat, Maharashtra, Odisha, West Bengal, Madhya Pradesh, Rajasthan, and the Special Economic Zone, which includes Adani Port.
The company's listed peers are VA Tech Wabag Ltd (with a P/E of 33.95), and EMS Ltd (with a P/E of 22.24).
The financial year ending on March 31, 2024, and the financial year ending on March 31, 2023, saw Effwa Infra & Research's revenue climb by 26.08% and profit after tax (PAT) increase by 169%.
The Effwa Infra IPO, worth ₹51.27 crore, consists of fresh issue of 5,316,800 equity shares worth ₹43.60 and offer-for-sale of 936,000 shares, aggregating up to ₹7.68 crore.
The company intends to use the net proceeds from the new offering to finance the following goals: general corporate purposes; financing the company's working capital needs for the acquisition of new office equipment; and funding the company's capital expenditure requirements.
The Effwa Infra and Research IPO's book running lead manager is Shreni Shares Limited, and the issue's registrar is Bigshare Services Pvt Ltd. Rikhav Securities is the market maker for Effwa Infra and Research IPO.
Effwa Infra IPO GMP today is +115. This indicates Effwa Infra share price were trading at a premium of ₹115 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, Effwa Infra IPO expected listing price was indicated at ₹197 apiece, which is 140.24% higher than the IPO price of ₹82.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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