Enviro Infra Engineers Limited IPO

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Enviro Infra Engineers Limited specializes in the designing, construction, operation, and maintenance of Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities and bodies across India. These projects are crucial for addressing urban and rural water management needs and include components such as:

i. Wastewater Treatment Plants (WWTPs)
ii. Water Supply Scheme Projects (WSSPs)

Sustainability Focus
The majority of their STPs and CETPs are equipped with Zero Liquid Discharge (ZLD) compliance, ensuring that treated water can be reused for horticulture, industrial processes, refrigeration, and washing, minimizing water wastage and environmental impact.

Funding and Collaboration

Their projects benefit from substantial funding and support from both central and state governments. Key schemes include:
i. Urban Areas:
a. Atal Mission for Rejuvenation and Urban Transformation (AMRUT): Supports urban infrastructure development, including WWTPs and WSSPs.
b. National Mission for Clean Ganga (NMCG): Focuses on rejuvenating the Ganga River through water treatment initiatives.

ii. Rural Areas:
a. Jal Jeevan Mission (JJM): Ensures access to safe and adequate drinking water in rural areas.

Project Delivery Models

They execute projects through:
i. Engineering, Procurement, and Construction (EPC): Traditional contracting model where they handle end-to-end project delivery.
ii. Hybrid Annuity Model (HAM): A model that blends EPC and public-private partnership (PPP) structures for shared risk and investment.

Competitive Edge

Their combination of government-backed funding, in-house expertise, and sustainable project designs positions them as a leader in water and wastewater infrastructure. By leveraging innovative technologies and government initiatives, they aim to contribute to India’s water management goals while ensuring environmental sustainability and public welfare.

Objects of the Enviro Infra Engineers Limited IPO:

The Company proposes to utilize the Proceeds from the Fresh Issue towards funding the following objectives: i. To meet the Working Capital Requirements; ii. Infusion of funds in our Subsidiary, EIEL Mathura Infra Engineers Private Limited (EIEL Mathura) to build 60 MLD STP under the project titled ‘Mathura Sewerage Scheme” at Mathura in Uttar Pradesh through Hybrid Annuity Based PPP Mode; iii. Repayment/prepayment in full or in part, of certain of our outstanding borrowings; and iv. Funding inorganic growth through unidentified acquisitions and general corporate purposes. Total number of shares issue: - i. Fresh issue is 38,680,000 shares, ii. Offer for sale is 5,268,000 shares.
DRHP of Enviro Infra Engineers Limited IPO
RHP of Enviro Infra Engineers Limited IPO

Enviro Infra Engineers Limited IPO Details:

Open Date: Nov 22 2024
Close Date: Nov 26 2024
Total Shares: 43,948,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 650.43 Cr.
Lot Size: 101 Shares
Issue Price: ₹ 140 - 148 Per Equity Share
Listing At: NSE,BSE
Listing Date: Nov 29 2024

Promoters And Management:

Sanjay Jain is the Chairman and Whole-time Director of the Company. He has been associated with the Company since incorporation. He holds a bachelor’s degree in chemical engineering from the Mangalore University. He has over two decades of experience in water and wastewater treatment industry. He looks after the designing, procurement of raw material and machinery in connection with construction and operation & maintenance of projects of the Company. Manish Jain is the Managing Director of the Company. He has been associated with the Company since incorporation. He holds a bachelor’s degree in chemical engineering from the Punjab University. He has over two decades of experience in water and wastewater treatment industry. He looks after bidding, execution and operation & maintenance of projects of the Company. He also looks after functions such as finance and business development in the Company. Ritu Jain is the Non-Executive Director of the Company. She has been associated with the Company since February 2017. She holds a bachelor’s degree in science (Home Science) from the Maharashi Dayanand University, a bachelor’s degree in education the Kurukshetra University and master’s degree in science (Home Science) from the Kurukshetra University. She has over seven years of experience in water and wastewater treatment industry. She looks after CSR activities in the Company.

Financials of Enviro Infra Engineers Limited IPO:

(In Cr.)
Particulars For 3MFY2024 FY 2023-24 FY 2022-23 FY 2021-22
Revenue 205.18 728.91 338.10 223.52
EBITDA 51.28 169.32 81.68 50.02
EBITDA Margin 24.99% 23.22% 24.15% 22.37%
PAT 29.96 108.56 55.33 34.54
PAT Margins 14.60% 14.89% 16.36% 15.45%
CFOA (103.41) (69) 101.08 41.59
Cash Conversion Ratio (OCF/EBITDA) Negative Negative 123.75% 83.14%

Comparison With Peers:

 
Companies ( fig. in cr) Revenue EBITDA PAT D/E Ratio MCap P/E
Enviro Infra Engineers (FY 2024) 728 169 (23.22%). 108 (14.89%) 0.80 2598  23.93
EMS Limited (TTM) 885  233  (26.32%) 172 (19.43%). 0.09 4,202. 24.40
ION Exchange Limited (TTM) 2,548 295 (11.57%) 215 (8.43%) 0.20 9,514 44.20
Va Tech Wabag Limited (TTM) 2,965 387 (13.05%) 266 (8.97%) 0.22 10,566 40.60
Vishnu Prakash R Punglia Limited (TTM) 1,491 221 (14.82%) 123 (8.25%) 0.74 3,481 28.30
 

Recommendation on Enviro Infra Engineers Limited IPO:

Review and Recommendation of Enviro Infra Engineers by IZ team is 4/10 Enviro Infra Engineers Ltd. emerges as a prominent player in the water and wastewater treatment sector, leveraging advanced technology, a robust order book, and sustainable initiatives such as solar power integration and Compressed BioGas (CBG) plants. With consistent revenue and PAT growth and strategic expansion in East and South India, the company is well-aligned with government-backed schemes like AMRUT, Jal Jeevan Mission, and Namami Gange. However, challenges such as a high dependence on government projects, rising debt, negative operating cash flows due to high working capital requirements, and intense competition from established players like VA Tech Wabag and Ion Exchange persist. Additionally, its valuation, with a price band of ₹140-148 per share, positions the IPO at a P/E ratio of 34.5x-36.5x, higher than peers like EMS Limited and Ion Exchange, trading at 24.03x and 30.87x, respectively. While the company’s strengths indicate long-term potential, the premium valuation raises concerns, requiring investors to carefully weigh its growth prospects against the risks and pricing.

Lead Manager of Enviro Infra Engineers Limited IPO:

  1. Hem Securities Limited

Registrar of Enviro Infra Engineers Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Enviro Infra Engineers Limited Unit No 201, Second Floor, Plot No. B, CSC/OCF-01, RG Metro Arcade, Sector -11, Rohini, Delhi North West 110085 Phone: +91 11 4059 1549 Email: cs@eiepl.in Website: http://www.eiel.in/

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