The Initial Public Offering (IPO) of Envirotech Systems has garnered significant interest from both retail and non-institutional investors, as evidenced by its strong demand on the first day of bidding. The IPO, which opened today, has already surpassed expectations, being fully subscribed within just a few hours. According to data from Chittorgarh, by 4:15 p.m., bids were placed for 76,24,000 shares, compared to the 32,92,000 shares on offer, resulting in an impressive subscription rate of 2.01 times. The overwhelming interest from retail investors drove their portion to a subscription of 3.59 times, while the non-institutional buyers’ portion was subscribed at 0.99 times.
Envirotech Systems aims to raise ₹30.04 crore through this IPO, which is entirely a fresh issue of 54 lakh shares. With the price band set between ₹53 and ₹56 per equity share, the IPO offers a face value of ₹10 per share. The lot size for the IPO is set at 2,000 shares, making the minimum investment required for retail investors ₹1,12,000.
Envirotech Systems IPO: Key Highlights
- Issue Size: 54 lakh shares
- IPO Value: ₹30.04 crore
- Price Band: ₹53 – ₹56 per share
- Lot Size: 2,000 shares
- Minimum Investment: ₹1,12,000 for retail investors
- Subscription Rate (As of Day 1): 2.01 times
- Lead Manager: Share India Capital Services Private Limited
- Registrar: Bigshare Services Pvt Ltd
- Market Maker: Share India Securities
- Listing Platform: NSE SME
The bidding process for the IPO will close on Wednesday, September 18, with the share allotment expected to be finalized on Thursday, September 29, 2024. Post-allotment, shares are scheduled to be listed on the NSE SME platform on Monday, September 23, 2024. The IPO is managed by Share India Capital Services Private Limited, while Bigshare Services Pvt Ltd has been appointed as the registrar for the issue. Share India Securities is acting as the market maker.
Objective of the Envirotech Systems IPO
The funds raised through this IPO will be used for various purposes that are critical to the company’s growth and expansion plans. Specifically, Envirotech Systems plans to utilize the proceeds for the following:
- Purchase of Land and Building: A portion of the funds will be used to acquire land and construct a factory to further enhance production capabilities.
- Working Capital Requirements: The company intends to use part of the capital to improve liquidity and cover day-to-day business operations.
- General Corporate Expenses: A portion will go towards covering miscellaneous corporate expenses to ensure smooth business operations.
- Issue-Related Costs: The funds will also cover the costs associated with the IPO process.
Envirotech Systems: A Pioneer in Acoustic Solutions
Founded in 2007, Envirotech Systems has emerged as a leader in acoustic products, specializing in noise measurement and control solutions for both industrial and commercial applications. The company’s journey from a small player to a well-recognized name in the industry reflects its commitment to innovation, quality, and customer satisfaction.
Envirotech Systems’ portfolio includes a diverse range of products designed to mitigate noise pollution and provide soundproofing solutions for various environments. Over the years, the company has expanded its expertise in areas such as research, cost-benefit analysis, and engineering solutions, offering a holistic approach to noise control. Its extensive product line includes solutions for industries such as manufacturing, construction, healthcare, and corporate offices.
With a strong focus on customized solutions, Envirotech Systems works closely with its clients to design and manufacture products tailored to specific needs. By ensuring that every product meets precise specifications, the company delivers high-performance solutions that optimize noise reduction and improve overall environmental quality.
A Strong Client Base and International Reach
Although Envirotech Systems is primarily an Indian company, it has a growing international presence, exporting certain products to key global markets. The company serves a wide range of clients, from large industrial corporations to smaller commercial entities, across sectors such as oil & gas, automotive, power generation, and construction. Its ability to offer tailored solutions has helped the company build a loyal client base, with many clients relying on its expertise for their most critical noise control challenges.
The company’s success is driven by its commitment to innovation, which allows it to stay ahead of market trends and continuously improve its product offerings. By investing in cutting-edge technology and maintaining a client-centric approach, Envirotech Systems has positioned itself as a market leader in the acoustics industry.
Envirotech Systems: Financials and Workforce
As of the date of the offer document, Envirotech Systems employs 98 individuals, a number that reflects its status as a mid-sized company with a lean and efficient operational model. The company’s financial performance over the past few years has been solid, with consistent growth in revenue and profitability. The IPO is expected to provide the necessary capital to further boost its financial position, enabling it to take advantage of growth opportunities in both the Indian and global markets.
Investor Considerations and Risks
While the Envirotech Systems IPO offers a promising investment opportunity, it is important for investors to be aware of the associated risks. Like all IPOs, there are inherent uncertainties that could affect the company’s financial performance and stock price post-listing. Market conditions, regulatory changes, and economic downturns can all have an impact on the value of the company’s shares.
Investors are encouraged to thoroughly review the Draft Red Herring Prospectus (DRHP) and consult with certified financial experts before making investment decisions. The DRHP outlines key risk factors and provides a detailed overview of the company’s business, financials, and market outlook.
Conclusion
The Envirotech Systems IPO has already attracted significant interest from both retail and institutional investors, a testament to the company’s strong reputation and market position. With its focus on customized acoustic solutions, Envirotech Systems is well-positioned for future growth, and the IPO offers a unique opportunity for investors to participate in its success. However, as with any investment, careful consideration of the risks involved is crucial.
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