Denta Water and Infra IPO Day 3 Live Updates: The initial public offering of Denta Water and Infra Solutions achieved a subscription rate of 50.63 times by the second day of bidding on Thursday.
The segment designated for non-institutional investors saw a staggering 128.41 times subscription, while the retail individual investors (RIIs) category was subscribed 43.51 times. The qualified institutional buyers (QIBs) portion received 4.75 times the subscription level.
Denta Water and Infra IPO announced on Tuesday that it had garnered slightly over ₹66 crore from anchor investors. The offering, priced between ₹279 and ₹294 per share, will close for public subscription on Friday.
The initial public offering is a completely new issuance of 7.5 million equity shares valued at ₹220.5 crores at the maximum end of the price range. The funds raised, amounting to ₹150 crores, will be allocated to support working capital needs, while a part will be directed towards general corporate purposes.
Established in 2016, Denta Water and Infra Solutions Ltd has become a significant contender in the domain of water engineering, procurement, and construction (EPC) services.
Stay tuned for more updates
Denta Water and Infra IPO Day 3 Live Updates: Check out few risks
- Company relies heavily on the Government of Karnataka for its business. 83.98% of revenue from operations in six months period ended September 30, 2024, is from Government of Karnataka.
- Delays in completion of current and future projects and time overrun could have adverse effect on business prospects and results of operations.
Denta Water and Infra IPO Day 3 Live Updates: Check out Marwadi Shares and Finance views
We assign “Subscribe” rating to this IPO as company has established expertise in water management projects with special focus on ground water recharging. Also, it is available at reasonable valuation as compared to its peer.
Denta Water and Infra IPO Day 3 Live Updates: Ongoing projects
As of November 2024, the company had 17 ongoing projects with an aggregate contract value of ₹ 1100.4 crore, out of which ₹1,066.7 crore is related to water management (GWR) projects. Of the 17 projects, one project is related to roads, 11 projects is from water management, and 5 projects is from railways.
Denta Water and Infra IPO Day 3 Live Updates: Issue booked 88.98x so far
The initial public offer of Denta Water IPO has been subscribed 88.98x on the first day of subscription today, at 11:48 IST, as per BSE data.
The initial share sale received bid for 46,71,25,600 shares against 52,50,000 shares on offer, according to BSE.
The portion for retail investors received 61.48x subscription while the quota for non-institutional investors got subscribed 257.48x. The qualified institutional buyers (QIBs) part is booked 10.71x.
Denta Water and Infra IPO Day 3 Live Updates: Order book details
Denta Waters currently has an order book of ₹ 750 crore, which is 3x of the revenue recognized in FY2024. This healthy pipeline of orders serves as a strong foundation for sustained revenue growth in the years ahead.
Denta Water and Infra IPO Day 3 Live Updates: Anchor investor details
Denta Water and Infra Solutions Ltd secured slightly more than ₹66 crore from anchor investors prior to its initial public offering (IPO). Among the participants in the anchor round were both foreign and domestic institutions, including Abakkus Diversified Alpha Fund-2, Rajasthan Global Securities, Saint Capital Fund, Finavenue Capital Trust, Chhatisgarh Investments Ltd, Steptrade Revolution Fund, Astorne Capital VCC — Arven, and Aarth AIF, as indicated in a circular posted on the BSE’s website.
According to the circular, the company allocated 22.5 lakh equity shares at a price of ₹294 each to 10 funds, resulting in a total transaction value of ₹66.15 crore.
Denta Water and Infra IPO Day 3 Live Updates: Key things to know about wastewater treatment industry
Over the next five years, the water and wastewater treatment industry in India is expected to grow at a CAGR of 6.2% given the rising urbanization and increasing water scarcity issue in India.
Denta Water and Infra IPO Day 3 Live Updates: Check out GEPL Capital’s views
Based on the FY24 earnings relative to the company’s post-IPO paid-up equity capital, the issue is priced at a P/E ratio of 13.14x. We believe the company is fairly valued compared to its peers and has strong order book, asset light business model, and improving margins. Therefore, we recommend a “subscribe” rating for the issue.
Denta Water and Infra IPO Day 3 Live Updates: Issue booked 61.59x so far
The initial public offer of Denta Water IPO has been subscribed 61.59x on the first day of subscription today, at 10:18 IST, as per BSE data.
The initial share sale received bid for 32,33,64,550 shares against 52,50,000 shares on offer, according to BSE.
The portion for retail investors received 49.07x subscription while the quota for non-institutional investors got subscribed 166.46x. The qualified institutional buyers (QIBs) part is booked 4.85x.
Denta Water and Infra IPO Day 3 Live Updates: Ongoing Projects as a Sub-contractor
- Koramangala-Challaghatta (KC) Valley project
- Hirehalla, Koppal Drinking Water supply
Denta Water and Infra IPO Day 3 Live Updates: Key projects
Their notable achievements encompass pivotal projects like the Byrapura and Hiremagaluru LIS Project, Karagada LIS Project, and others, primarily executed through lift irrigation systems. Notably, Denta Water played a substantial role in the first phase of the KC Valley project, contributing to Bengaluru’s reputation as the second-largest city globally in terms of treated wastewater quantity.
Denta Water and Infra IPO Day 3 Live Updates: Strong order book
As of November 30, 2024, they have 17 ongoing projects being implemented either directly by them or under consortium arrangements with other entities, and their Company’s share in the aggregate contract value comprises ₹ 11,004.36 million, out of which ₹ 10,667.52 million is in relation to water management projects.
Denta Water and Infra IPO Day 3 Live Updates: Check out the firm’s ongoing projects
- Koramangala-Challaghatta (KC) Valley project – Phase II
- Bangalore East Lift Irrigation Scheme (LIS)
- Multi Village scheme for drinking water supply – Kopal District
Denta Water and Infra IPO Day 3 Live Updates: Check out Anand Rathi’s views
Denta Water and Infra Solutions Ltd has established expertise in water management projects with special focus on ground water recharging with expertise in in-house designing and engineering of water management infrastructure projects and strong order book along with efficient business model.
At the upper price band company is valuing at P/E of 13.14x, with an EV/EBITDA of 9.13x and market cap of ₹ 7,849 million post issue of equity shares and return on net worth of 36.36%.
We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO.
Denta Water and Infra IPO Day 3 Live Updates: Here’s what GMP hints ahead of third bidding day
Denta Water IPO GMP today or Denta Water IPO grey market premium is +137. This indicates Denta Water share price was trading at a premium of ₹137 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, the estimated listing price of Denta Water share price was indicated at ₹431 apiece, which is 46.6% higher than the IPO price of ₹294.
According to the grey market activities observed over the past eight sessions, the IPO GMP is currently showing an upward trend, indicating a potentially strong listing. The minimum GMP recorded is ₹45, whereas the maximum stands at ₹165, as per insights from experts at investorgain.com.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
