Effwa Infra & Research Limited IPO

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Effwa Infra & Research Limited (EIRL) is a prominent player in the field of engineering, consultancy, procurement, construction, and integrated project management services. They specialize in water pollution control, covering areas such as sewage and industrial effluent treatment, solid waste treatment and disposal, ventilation systems, hazardous waste management, and water treatment plants. Their extensive expertise allows them to provide a comprehensive range of services from project organization and management to equipment procurement, funding, and execution.

Sustainable Approach

EIRL operates on the 4R concept: Reducing, Recycling, Reusing, and Rehabilitation. This approach enables them to provide technological solutions for various industries, allowing them to achieve Zero Liquid Discharge (ZLD) by recovering and recycling water from effluent streams. They cater to industries such as textile, leather, paper, food processing, dairy, chemicals, dyes and intermediates, steel, mining, power, pharmaceutical and bulk drugs, sugar, distilleries, fertilizers, pesticides, ceramics, and petrochemicals. Their commitment to ZLD highlights their dedication to minimizing environmental impact and maximizing resource efficiency.

Comprehensive Service Offerings

EIRL provides services across the entire project lifecycle from “concept to commissioning,” which includes:
i. Preparation of project feasibility reports                        ii. Technology selection
iii. Project management                                                        iv. Process design
v. Basic and detailed engineering                                       vi. Procurement
vii. Inspection                                                                       viii. Supply chain management
ix. Cost engineering                                                                x. Planning and scheduling
xi. Construction management                                            xii. Commissioning
xiii. Facilitation of statutory and regulatory approvals for Indian projects

They also offer equipment design, environmental engineering services, materials and maintenance services, plant operation, and safety services.

Market Presence

EIRL operates in both the domestic and international markets, covering eight states and a Special Economic Zone. These regions include Andhra Pradesh, Chhattisgarh, Gujarat, Maharashtra, Odisha, West Bengal, Madhya Pradesh, Rajasthan, and the Special Economic Zone at Adani Port. Their projects and sales in these areas for the financial years ending March 31, 2024, 2023, and 2022, underline their expansive market presence.

Conclusion

Effwa Infra & Research Limited stands as a leading provider of comprehensive environmental solutions. Their robust portfolio and commitment to sustainable practices make them a trusted partner for government bodies and private sector clients. Their diverse service offerings, advanced technologies, and experienced team ensure successful project execution and long-term environmental benefits. As they continue to innovate and expand, they remain dedicated to enhancing resource efficiency and reducing environmental impact.

Objects of the Effwa Infra & Research Limited IPO:

The Company proposes to utilize the Net Proceeds from the Fresh Offer towards funding the following objects: i. Funding working capital requirements of the company; ii. Funding of capital expenditure requirements of the company towards the purchase of new office Equipment; and iii. General corporate purposes. Total number of share issue :- i. Fresh issue is 5,316,800 shares, ii. Offer for sale is 936,000 shares.
DRHP of Effwa Infra & Research Limited IPO
RHP of Effwa Infra & Research Limited IPO

Effwa Infra & Research Limited IPO Details:

Open Date: Jul 05 2024
Close Date: Jul 09 2024
Total Shares: 6,252,800
Face Value: ₹ 10 Per Equity Share
Issue Size: 51.27 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 78 - 82 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 12 2024

Promoters And Management:

Dr. Varsha Subhash Kamal, aged 63 years, is the Promoter, Chairperson and Managing Director of the Company. She holds Master Degree in Technology (Environmental Science & Engineering) from Indian Institute of Technology (IIT) received in the year 1986. She has completed her PhD Science in Biology from Carleton University at Ottawa Canada in the year 1989. She has been felicitated with Rajiv Gandhi Excellence Award in the year 1995 for Championing Water Conservation and Pollution Control by executing 200 projects over a span of 2 years. She has been associated with the company since inception. She collectively possesses more than 25 years of experience in the water and wastewater treatment industry, respectively. Her vision and growth strategies influence the company, enabling them to anticipate, guide, manage, develop, and control major aspects of the business operations, she is looking after projects biding, marketing, overall management and financials areas of the company. Mr. Subhash Ramavtar Kamal, aged 60 years, is the Promoter, Whole Time Director of the Company. He has completed his Bachelor of Engineering in Civil Engineering from Awadhesh Pratap Singh Vishwavidyalaya Rewa (MP) in the year 1984. He holds Master Degree in Technology (Environmental Science & Engineering) from Indian Institute of Technology (IIT) received in the year 1986. He has been felicitated with Marudhara Paryavaran Premi Sanmaan in the year 2005 for establishment of Common Effluent Treatment Plant for Textile Industries of Jasol and Badmer. He has been associated with the company since inception. He collectively possesses more than 25 years of experience in the water and wastewater treatment industry, respectively. He is responsible for crafting and implementing the overall strategy of the company, he is currently looking after projects execution, civil work and technical part of projects of the Company. Mr. Ravindra N Hanchate, aged 52 years, is the Non-Executive Independent Director of the Company. He has completed Diploma in Electronics and Telecommunication Engineering from Maharashtra State Board in the year 1990. He has completed One-year Advanced Diploma in Business Administration in the year 2011 with Distinction. He also holds a Two year Post Graduate Diploma degree in Marketing Management in the year 2012. He has more than 25 years of experience in sales & marketing industry. He has previously worked Jr. Engineer at Ultra Tek Devices Limited, Senior Engineer at Ge Power Systems, Sales Manager at Rajdeep Energies Pvt. Ltd, Numeric Power Systems Ltd, and Powertec Supplies Pvt Ltd. Currently he has been associated with OMG Chemicals & Magnetics Private Limited since 2013 for VAC India Office as Senior Sales Manager.

Financials of Effwa Infra & Research Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 10,437 11,510 14,516
Other Income 25 32 36
Total Revenue 10,462 11,541 14,551
Cost of Goods Sold 8,525 9,162 10,690
Employees Benefit Expenses 649 732 932
Office & Admin Expenses 50 76 95
Selling & Distribution Exp. 70 85 93
Other Expenses 458 576 642
EBITDA 710 911 2,099
OPM (%) 6.79% 7.89% 14.43%
Depreciation & Amortisation 12 12 19
EBIT 699 899 2,080
Finance Cost 93 196 199
PBT 605 702 1881
Tax 145 189 501
PAT 460 513 1380
NPM (%) 4.40% 4.45% 9.48%
No.of Shares 231.47 231.47 231.47
EPS 1.98 2.21 5.96

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Effwa Infra & Research Limited 145 14 5.96 13.8 82 190
VA Tech Wabag Limited 2,856 250 39.49 33.3 1,316 8,184
EMS Limited 793 153 27.44 24.4 669 3,716
* All the data is as per FY24.

Recommendation on Effwa Infra & Research Limited IPO:

Review and Recommendation of Effwa Infra & Research by team IZ is 6/10. 1. Effwa Infra & Research Limited (EIRL) is a comprehensive engineering and consultancy firm specializing in various aspects of environmental management. The company offers an extensive range of services, including engineering, procurement, construction, and integrated project management. EIRL also provides consultancy and advisory services encompassing project organization, management, equipment procurement, funding, and execution. 2. Core Business Areas i. Water Pollution Control                         ii. Solid Waste Management       iii. Ventilation Systems iv. Hazardous Waste Management        v. Integrated Project Management 3. Industry Focus EIRL caters to a diverse range of industries, including: i. Textile                                            ii. Leather                                                       iii. Paper iv. Food Processing                        v. Dairy                                                           vi. Chemicals vii. Dyes and Intermediates         viii. Steel                                                          ix. Mining x. Power                                           xi. Pharmaceutical and Bulk Drugs            xii. Sugar xiii. Distilleries                                xiv. Fertilizers                                                  xv. Pesticides xvi. Ceramics                                 xvii. Petrochemicals The company's emphasis on ZLD makes it an attractive partner for environmentally conscious businesses and regulatory bodies. 4. Market Presence EIRL operates in both domestic and international markets, with a presence across eight states in India, including Andhra Pradesh, Chhattisgarh, Gujarat, Maharashtra, Odisha, West Bengal, Madhya Pradesh, and Rajasthan. The company also operates in the Special Economic Zone (SEZ) at Adani Port. 5. Competitive Landscape EIRL operates in a competitive industry where projects are awarded based on bidders' past relevant experience, financial capability, and bid price. EIRL's focus on water management and irrigation projects sets it apart from competitors, enabling it to develop regional and specialized expertise. 6. The Revenue has Increased from Rs.104 Crores in FY22 to Rs.145 Crores in FY24. 7. The EBITDA has Increased from 7 Crores in FY22 to 21 Crores in FY24. 8. The PAT has Increased from 4.6 Crores in FY22 to 13.8 Crores in FY24. 9. As per FY24, CFO/EBITDA is 0.97, and EPS is 5.96, 10. Market Capitalization is 190 Crores and P/E is 13.8x based on FY24.

Lead Manager of Effwa Infra & Research Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Effwa Infra & Research Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Effwa Infra & Research Limited G. No. 7, Vardhman Industrial Complex, Lal Bahadur Shastri Marg, Gokul Nagar, Thane West, Thane – 400601 Phone: + 91 9833850052 Email: investor@effwa.co.in Website: https://www.effwa.co.in/

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