Envirotech Systems Limited IPO

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Envirotech Systems Limited provides a comprehensive suite of services that encompass research, cost-benefit analysis, and engineering solutions, all aimed at delivering the most efficient noise abatement strategies. The company’s product portfolio is diverse, covering a range of customized noise control products designed to meet the specific needs of its clients. This customer-centric approach has been instrumental in establishing long-term relationships with clients who rely on the company for high-quality and customized solutions.

Market Presence

Envirotech Systems Limited operates across India, serving a diverse clientele in industrial and commercial sectors. Although the company does engage in exporting some of its products, the revenue from exports is not a significant portion of its overall earnings. The company’s focus remains on the domestic market, where it delivers bespoke noise control solutions that align with individual customer requirements.

Research & Development

Innovation is at the core of Envirotech Systems Limited’s operations. The company’s R&D department is well-established and employs advanced computer-aided tools and highly skilled personnel. The department is dedicated to market research, continual product development, and the enhancement of production technologies, ensuring that Envirotech Systems Limited remains at the forefront of the acoustics industry.

Industry Expertise

Envirotech Systems Limited has a proven track record of successfully executing projects across a variety of industries, including Oil & Gas, Manufacturing, Power Generation, Cement & Steel, Automobile, and Construction. The company’s commitment to using the latest technology and a continuous improvement mindset has solidified its reputation for excellence and customer satisfaction.

Conclusion

Envirotech Systems Limited stands out as a leader in the acoustics industry, offering professional and concise solutions for noise control needs. With a strong focus on customer-centric solutions, cutting-edge manufacturing capabilities, and a commitment to innovation, the company is well-positioned to continue its growth and expansion both domestically and internationally.

Objects of the Envirotech Systems Limited IPO:

The Company proposes to utilize the funds which are being raised towards funding the following objects and achieve the benefits of listing on the Emerge Platform of NSE: i. Purchase Land and Building for setting up factory ii. Funding of working capital requirements of the Company iii. General Corporate Expenses iv. Issue Expenses
DRHP of Envirotech Systems Limited IPO
RHP of Envirotech Systems Limited IPO

Envirotech Systems Limited IPO Details:

Open Date: Sep 13 2024
Close Date: Sep 18 2024
Total Shares: 5,400,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 30.24 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 53 - 56 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 23 2024

Promoters And Management:

Mr. Manoj Kumar Gupta, aged 50, is the Promoter and Managing Director of the Company. Appointed as the First Director upon incorporation in February 2007, he became Managing Director on January 12, 2024, for a five-year term, subject to retirement by rotation. With a Bachelor of Science from Kanpur University and a Diploma in Mechanical Engineering from Lucknow Polytechnic, he has over 20 years of experience in the Acoustic Insulation industry. Mr. Gupta has been pivotal in making major policy decisions, formulating business strategies, and ensuring their effective implementation. Ms. Sindhu Gupta, aged 47, is a Promoter and Director of the Company, appointed as one of the First Directors in February 2007. She holds a Master's degree in Political Science (1999) and a Bachelor's degree in Arts (1997) from Chhatrapati Shahu Ji Maharaj University, Kanpur. With over 15 years of experience in Administration and Human Resources, she has been integral to the Company since its inception, overseeing recruitment, HR matters, and administrative activities. Rakesh Gupta, aged 67, is a Non-Executive Director of the Company with a Bachelor's degree in Commerce. He served as an Intelligence Officer with the Ministry of Home Affairs from 1976 to 1996 before transitioning into entrepreneurship. He founded a construction business specializing in civil projects from 1996 to 2004 and has since managed various budget hotels and banquet halls in Delhi NCR and Goa. With his extensive entrepreneurial experience, he plays a key advisory role in strategic decision-making and guiding the Company's growth.

Financials of Envirotech Systems Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 1,811 2,832 4,624
Other Income 39 43 64
Total Revenue 1,850 2,875 4,688
Cost of Raw Material 1,128 1,612 2,250
Changes in inventories 8 11 -133
Employees Benefit Expenses 222 318 413
Other Expenses 295 528 498
EBITDA 196 406 1,660
OPM (%) 10.62% 14.11% 35.41%
Depreciation & Amortisation 12 12 21
EBIT 184 394 1,639
Finance Cost 40 41 79
PBT 144 353 1,560
Tax 40 97 417
PAT 106 257 1143
NPM (%) 5.72% 8.95% 24.38%
No.of Shares 187.90 187.90 187.90
EPS 0.56 1.36 6.08

Comparison With Peers:

Note :- There are no listed companies in India that are engaged in a business similar to this company.

Recommendation on Envirotech Systems Limited IPO:

1. Envirotech Systems Limited (ESL) is a premier organization specializing in the design, manufacture, and deployment of acoustic products aimed at controlling and measuring noise levels in both industrial and commercial settings. ESL offers a wide range of services that are both innovative and cost-effective, catering to a diverse clientele across various sectors. 2. Product Offering & Custom Solutions: The company’s product range includes acoustic enclosures for various industrial machines such as gas turbines, steam turbines, compressors, diesel generators, and more. These enclosures are engineered to ensure high acoustic performance, stability, and durability, with additional features like electrical installations, ventilation systems, and safety components. 3. Market Reach & Clientele: While Envirotech Systems Limited primarily serves the Indian market, it also exports a portion of its products to international clients. The company’s services are highly sought after in industries such as Oil & Gas, Manufacturing, Power Generation, Cement & Steel, Automobile, and Construction. 4. Competition & Industry Position: Envirotech Systems Limited operates in a niche industry with limited organized competition. The industry’s entry barriers are high due to the significant technical know-how and capital investment required, both in terms of setting up manufacturing facilities and managing working capital. 5. The Revenue has Increased from Rs.18 Crores in FY22 to Rs.46 Crores in FY24. 6. The EBITDA has Increased from 2 Crores in FY22 to 16.6 Crores in FY24. 7. The PAT has Increased from 1 Crores in FY22 to 11 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.95, and EPS is 6.08, 9. Market Capitalization is 105 Crores and P/E is 9.2x based on FY24.

Lead Manager of Envirotech Systems Limited IPO:

  1. Share India Capital Services Private Limited

Registrar of Envirotech Systems Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Envirotech Systems Limited A-29, Block-A, Shyam Vihar Phase-I, New Delhi - 110043 Phone: +0120-4337633 Email: cs@envirotechltd.com Website: https://www.envirotechltd.com/

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