SME IPO listing: Envirotech Systems share price made a strong debut on NSE SME on Tuesday, September 24, as the stock opened at ₹106.40, at a premium of 90 per cent with respect to the issue price of ₹56. After a stellar opening, the stock moved further to hit its 5 per cent upper price band of ₹111.70.
The grey market premium (GMP) for Envirotech Systems shares suggested a potential debut at an 84 per cent premium. However, the actual listing surpassed these expectations, reflecting even stronger market sentiment.
Envirotech Systems IPO opened for subscription on Friday, September 13, and concluded on Thursday, September 19. The ₹30.24 crore IPO was a fresh issue of 54 lakh shares, with a price band of ₹53 to ₹56 per share.
The IPO saw a healthy response from investors as it was subscribed nearly 92 times, with retail and non-institutional buyers' segments witnessing subscriptions of 64 times and 187 times, respectively.
The company wants to utilise the funds raised through the issue for the purchase of land and buildings to set up a factory, working capital requirements, general corporate expenses, and issue-related costs.
According to the Draft Red Herring Prospectus (DRHP), the company claims to be a leading manufacturer of acoustic products, specialising in noise measurement and control solutions for industrial and commercial applications.
The company focuses on manufacturing products tailored to meet specific customer demands, providing customised solutions for various noise control requirements. Its products are designed and fabricated based on client specifications, ensuring optimal performance and efficiency.
The company's profit after tax (PAT) stood at ₹1.06 crore in FY22, which rose to ₹2.57 crore next year and to ₹11.43 crore in FY24.
Net revenue from operations was ₹18.11 crore in FY22 which rose to ₹28.32 crore and ₹46.24 crore in FY23 and FY24, respectively.
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