Effwa Infra IPO Soars with 90% Premium on Debut
On July 12, Effwa Infra and Research had a stunning stock market debut, listing at Rs 155.80 per share, a sharp 90 percent premium above its issue price of Rs 82 on the NSE SME platform. This remarkable start demonstrates the great demand and investor trust in the company’s future possibilities.
IPO Details
Effwa Infra’s IPO raised a total of Rs 51.27 crores, which included a fresh issue of 53.17 lakh shares worth Rs 43.60 crores and an offer to sell of 9.36 lakh shares for Rs 7.68 crore. The new offering aimed to acquire funds for various corporate reasons and to increase the company’s working capital.
Bidding and Allotment
The bidding procedure for Effwa Infra’s IPO began on July 5 and ended on July 9. The issuance of shares was completed on July 10, with a high response from numerous investor groups, indicating strong market demand.
Anchor Investor Participation
Effwa Infra raised Rs 14.34 crore from anchor investors, with the anchor bid held on July 4. This early participation by major investors laid a solid foundation for the IPO’s success.
Price Band and Application Size
The IPO was offered at a price range of Rs 78-82 per share. Retail investors were needed to apply for a minimum of 1,600 shares, which amounted to an investment of Rs 1.31 lakh. High Net Worth Individuals (HNIs) had to apply for at least two lots, or 3,200 shares, resulting in a minimum investment of Rs 2.62 lakh.
Key Participants in the IPO
Shreni Shares Ltd served as the book-running lead manager for the IPO, guaranteeing a smooth execution. Bigshare Services Pvt Ltd acted as registrar, overseeing the share allotment procedure. Rikhav Securities was designated as the market maker, and they played an important role in stabilizing the stock following its IPO.
Company Overview
Effwa Infra provides engineering, consulting, procurement, construction, and integrated project management services for water pollution control. The company’s services include sewage and industrial effluent treatment, solid waste management, hazardous waste management, and water treatment plants. Effwa Infra supports a wide range of sectors, including textiles, chemicals, pharmaceuticals, and power.
Financial Performance
Effwa Infra has achieved consistent financial performance in recent years. The company’s strategic efforts and diverse service offerings have helped to increase revenue and profitability, putting it in a strong position for future growth.
Growth Prospects
The water pollution control and management sector is expected to grow significantly, owing to increased environmental laws and the demand for long-term solutions. Effwa Infra is well-positioned to capitalize on these trends, with strategic objectives to broaden its service offerings and increase market presence.
Market Sentiment
Investor attitude about Effwa Infra has been extremely positive, as shown by the significant demand on listing day and the substantial grey market premium preceding the IPO. This enthusiasm demonstrates belief in the company’s business concept and growth potential.
Risk Factors:
Despite the robust market response, prospective investors should be mindful of a number of risks, including market volatility, regulatory changes, and operational issues. Effwa Infra’s capacity to manage these risks will be critical to its long-term success.
Conclusion
Effwa Infra’s IPO was a huge success, with a 90 percent premium listing indicating high market demand and investor trust in the company. With its strong financial performance, planned growth plans, and positive market sentiment, Effwa Infra is well-positioned for long-term success.
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