The Concord Enviro IPO is a book-built issue aiming to raise ₹500.33 crores, comprising a fresh issue of ₹175 crores (0.25 crore shares) and an offer for sale of ₹325.33 crores (0.46 crore shares). The IPO will open for subscription on December 19, 2024, and close on December 23, 2024, with allotment expected to be finalized on December 24, 2024, and listing on December 27, 2024, on the BSE and NSE.
The price band is set between ₹665 and ₹701 per share, with a minimum application lot size of 21 shares requiring an investment of ₹14,721 for retail investors. sNII investors need to invest ₹2,06,094 (14 lots or 294 shares), while bNII investors must invest ₹10,01,028 (68 lots or 1,428 shares).
In 2024, the company reported revenue of ₹512.27 crores, a significant increase from ₹350.50 crores in 2023, and a profit of ₹41.44 crores, up from ₹5.49 crores in 2023, making the IPO attractive for long-term investors. The retail quota is 35%, QIB quota is 50%, and HNI quota is 15%.
Overview of Contents
Concord Enviro IPO Subscription Status
The subscription details of the IPO indicate strong demand across all investor categories. Qualified Institutional Buyers (QIBs) were allocated 13,79,122 shares, for which they bid a total of 2,38,82,166 shares, leading to an oversubscription of 17.32 times. Among QIBs, Foreign Institutional Investors (FIIs) bid for 1,22,35,503 shares, Domestic Financial Institutions, including banks and insurance companies, bid for 76,35,369 shares, mutual funds bid for 24,67,878 shares, and others contributed bids of 15,43,416 shares.
Non-Institutional Investors (NIIs) had 10,90,870 shares reserved, which saw bids for 1,54,88,928 shares, resulting in an oversubscription of 14.20 times. This category was further divided into subcategories: investors with bid amounts exceeding ₹10 lakh subscribed 14.09 times, with corporates bidding for 6,25,905 shares, individuals (other than RIIs) for 91,61,859 shares, and others for 4,60,488 shares. Meanwhile, those with bid amounts ranging from ₹2 lakh to ₹10 lakh subscribed 14.41 times, with corporates bidding for 33,264 shares, individuals (other than RIIs) for 49,27,923 shares, and others for 2,79,489 shares.
Retail Individual Investors (RIIs) were allocated 25,45,364 shares, and their total bid stood at 1,41,63,492 shares, resulting in an oversubscription of 5.56 times. Within this category, cut-off bids accounted for 1,24,60,980 shares, while price bids contributed 17,02,512 shares. Overall, the IPO saw a total allocation of 50,15,356 shares and received bids for 5,35,34,586 shares, leading to an aggregate oversubscription of 10.67 times. This overwhelming response reflects significant investor interest across all categories.
About Concord Enviro Systems IPO
Concord Enviro Systems Limited, founded in July 1999, is a leading provider of water and wastewater treatment solutions, specializing in zero-liquid discharge (ZLD) technology. The company focuses on customer satisfaction and long-term relationships, serving 353 domestic and 24 international customers across industries such as pharmaceuticals, chemicals, food and beverage, defense, automotive, steel, and textiles. Concord Enviro operates in two countries, with manufacturing facilities in Vasai, Maharashtra, India, and Sharjah, UAE. The company offers integrated solutions across the entire value chain, including design, manufacturing, installation, operation, and maintenance (O&M), alongside digitalization initiatives like IoT.
The company has seen significant growth, with its revenue increasing from ₹329.37 crores in 2022 to ₹496.86 crores in 2024, and net income reaching ₹41.44 crores in 2024. Its products and services include water and wastewater treatment, ZLD systems, turnkey solutions, consumables, and compressed biogas plants (CBG). With a diverse global reach, Concord Enviro exports to regions including North America, Latin America, Africa, the Middle East, and Southeast Asia. The company has a robust clientele, including multinational corporations like Diageo Mexico and Grasim Industries, and is executing projects such as implementing ZLD solutions for Diageo in Mexico and the USA. Its in-house R&D team, comprising 21 employees, plays a key role in developing innovative solutions.
Concord Enviro’s competitive strengths include its market leadership in ZLD technology in India, its integrated solutions approach, strong international presence, and a diversified customer base across various industries and regions. The company’s commitment to energy optimization and sustainability positions it as a strong player in the water and wastewater treatment sector.
Concord Enviro Systems IPO Overview
| IPO Details | Information |
|---|---|
| IPO Opening Date | December 19, 2024 |
| IPO Closing Date | December 23, 2024 |
| Listing Date | December 27, 2024 |
| Face Value | ₹5 per share |
| Price Band | ₹665 to ₹701 per share |
| Lot Size | 21 Shares |
| Total Issue Size | 71,37,321 shares (aggregating up to ₹500.33 Cr) |
| Fresh Issue | 24,96,433 shares (aggregating up to ₹175.00 Cr) |
| Offer for Sale | 46,40,888 shares of ₹5 (aggregating up to ₹325.33 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 1,81,99,800 shares |
| Share Holding Post Issue | 2,06,96,233 shares |
| Retail Investor Quota | 35% |
| QIB Quota | 50% |
| HNI Quota | 15% |
| Min Investment Amount | ₹14,721 |
| Max Retail Investment | ₹2,06,094 (for 14 lots) |
| S-HNI Minimum | 14 lots (294 shares) |
| B-HNI Minimum | 68 lots (1,428 shares) |
Concord Enviro IPO Dates
| IPO Open Date | Thursday, December 19, 2024 |
|---|---|
| IPO Close Date | Monday, December 23, 2024 |
| Basis of Allotment | Tuesday, December 24, 2024 |
| Initiation of Refunds | Thursday, December 26, 2024 |
| Credit of Shares to Demat | Thursday, December 26, 2024 |
| Listing Date | Friday, December 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 23, 2024 |
Concord Enviro IPO Lot Size Details
Investors can bid for a minimum of 21 shares, and the shares must be applied in multiples of 21. Below is the investment breakdown for retail investors and HNIs in terms of shares and amount:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 21 | ₹14,721 |
| Retail (Max) | 13 | 273 | ₹1,91,373 |
| S-HNI (Min) | 14 | 294 | ₹2,06,094 |
| S-HNI (Max) | 67 | 1,407 | ₹9,86,307 |
| B-HNI (Min) | 68 | 1,428 | ₹10,01,028 |
Concord Enviro IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Isssue |
Concord Enviro IPO Anchor Investors Details
| Bid Date | December 18, 2024 |
|---|---|
| Shares Offered | 21,41,195 |
| Anchor Portion Size (In Cr.) | ₹150.10 Crores |
| Anchor Lock-in Period End Date for 50% Shares (30 Days) | January 23, 2025 |
| Anchor Lock-in Period End Date for Remaining Shares (90 Days) | March 24, 2025 |
Concord Enviro Systems Limited Financial Information
Concord Enviro Systems Limited has shown impressive growth in its financial performance. Between the financial year ending March 31, 2023, and March 31, 2024, the company’s revenue saw an increase of 46%, while its profit after tax (PAT) surged by an extraordinary 655%. The company’s financial performance has also shown positive momentum across various other financial parameters.
| Period Ended | 31 Aug 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets (₹ Cr.) | 640.09 | 627.68 | 592.22 | 536.90 |
| Revenue (₹ Cr.) | 208.02 | 512.27 | 350.50 | 337.57 |
| Profit After Tax (₹ Cr.) | 0.52 | 41.44 | 5.49 | 16.48 |
| Net Worth (₹ Cr.) | 319.71 | 320.82 | 279.23 | 266.81 |
| Reserves and Surplus (₹ Cr.) | 300.59 | 303.09 | 258.64 | 261.12 |
| Total Borrowing (₹ Cr.) | 167.53 | 153.19 | 131.06 | 125.76 |
Concord Enviro Systems IPO – FY2024 Valuation
The company has demonstrated a solid performance with a healthy return on equity (ROE) and return on capital employed (ROCE), both reflecting its efficient use of resources. The EBITDA margin of 16.33% indicates strong profitability, while a PAT margin of 8.34% suggests good control over costs and efficient management. The debt-to-equity ratio of 0.47 implies moderate leverage, which is manageable for the company.
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 13.73% |
| Return on Capital Employed (ROCE) | 14.07% |
| EBITDA Margin | 16.33% |
| PAT Margin | 8.34% |
| Debt to Equity Ratio | 0.47 |
| Earnings Per Share (EPS) | ₹22.77 (Basic) |
| Price/Earnings (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 12.92% |
| Net Asset Value (NAV) | ₹177.23 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| Praj Industries Limited | 15.42 | – | 22.24% | 69.35 | 3,508 Cr. |
| Ion Exchange (India) Limited | 16.53 | – | 19.24% | 86.15 | 2,392 Cr. |
| Triveni Engineering and Industries | 18.05 | – | 13.80% | 132.51 | 5,220 Cr. |
| VA Tech Wabag | 39.49 | – | 15.04% | 235.96 | 2,856 Cr. |
| Thermax Limited | 57.28 | – | 14.80% | 314.96 | 9,323 Cr. |
Objects of the Issue
- U.A.E. Project: Investment in Concord Enviro FZE for capital expenditure to develop a greenfield assembly unit for water treatment systems and related modules.
- Vasai Project: Investment in Rochem Separation Systems (India) Pvt. Ltd. for expanding manufacturing facilities.
- Plant and Machinery: Funding capital expenditure for plant and machinery purchases.
- Debt Repayment: Prepayment or repayment of outstanding borrowings of Concord Enviro FZE.
- Working Capital: Funding working capital requirements of Concord Enviro FZE.
- Pay-Per-Use Business: Investment in Reserve Enviro Pvt. Ltd. to expand the pay-per-use treatment business.
- Growth and Technology: Investment in technology and growth initiatives to access new markets.
- General Corporate Purposes.
Concord Enviro Systems IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: [email protected]
Website: https://linkintime.co.in/
IPO Lead Managers aka Merchant Bankers
- Motilal Oswal Investment Advisors Limited
- Equirus Capital Private Limited
Company Address
Motilal Oswal Investment Advisors Limited
Equirus Capital Private Limited
Concord Enviro Systems IPO FAQs
What is the IPO date for Concord Enviro?
The Concord Enviro IPO will open on December 19, 2024 and close on December 23, 2024.
What are the key objectives of the IPO?
The IPO proceeds will be used for capital expenditure on the U.A.E. and Vasai projects, debt repayment, working capital, and investing in technology and growth initiatives.
What is the lot size for the Concord Enviro IPO?
Investors can bid for a minimum of 21 shares, and the lot size increases in multiples of 21 shares.
How will the IPO funds be utilized?
Funds will be used for expanding manufacturing facilities, assembling water treatment plants, repaying debt, and supporting working capital needs.
What is the Anchor Investors’ bid date?
The Anchor Investors’ bid date is December 18, 2024.
What is the lock-in period for Anchor Investors?
The lock-in period for 50% of shares is 30 days (ending January 23, 2025) and for the remaining shares, it is 90 days (ending March 24, 2025).
What is the price band for the IPO?
The price band for the IPO is ₹665 to ₹701 per share.
When will the shares be listed?
The shares will be listed on December 27, 2024.
What is the expected Return on Net Worth (RoNW) for Concord Enviro?
The RoNW is expected to be 12.92% for FY 2024.
What is the Net Asset Value (NAV) for Concord Enviro?
The NAV is ₹177.23 per share for FY 2024.