Concord Enviro Systems made a steady debut on the Indian stock exchanges on Friday, December 27, 2024, listing at ₹832 per share on the BSE, reflecting an 18.68% premium over its issue price of ₹701. On the NSE, the stock opened at ₹826 per share, marking a 17.83% premium.
The IPO, which had a grey market premium (GMP) of ₹100 before listing, was well-received, with an overall subscription of 10.67 times. The retail quota was subscribed 5.56 times, while the QIB and NII quotas saw higher demand, being subscribed 17.32 times and 14.2 times, respectively.
Overview of Contents
Details About Concord Enviro Systems IPO
Founded in July 1999, Concord Enviro Systems specializes in water treatment and wastewater reuse using zero-liquid discharge (ZLD) technology. The company serves over 353 national and 24 international clients across industries such as pharmaceuticals, chemicals, food and beverage, defense, automotive, and textiles. With manufacturing facilities in Vasai, Maharashtra, and Sharjah, UAE, Concord Enviro has seen revenue growth from ₹329.37 crores in 2022 to ₹496.86 crores in 2024, with a net income of ₹41.44 crores for 2024.
Concord Enviro Systems received approval from SEBI for an IPO to raise ₹500.33 crores, with a face value of ₹5 per share. The price band for the IPO was set between ₹665 and ₹701 per share. The IPO offered a lot size of 21 shares for the minimum retail category, with the maximum retail category consisting of 273 shares in 13 lots. For S-HNI investors, the lot size was 294 shares across 14 lots, while B-HNI investors had 1,428 shares available in 68 lots.
Concord Enviro Systems IPO Subscription Status
The IPO of Concord Enviro Systems saw strong demand across all categories. Qualified Institutional Buyers (QIBs) were allotted 13,79,122 shares, with a total bid of 2,38,82,166 shares, representing a subscription of 17.32 times. Non-Institutional Investors (NIIs) bid for 1,54,88,928 shares, surpassing the 10,90,870 shares available, with a subscription rate of 14.20 times. Retail Individual Investors (RIIs) subscribed 5.56 times, bidding for 1,41,63,492 shares out of the 25,45,364 shares offered. Overall, the IPO was subscribed 10.67 times, reflecting strong investor interest.
Funds Deployment of This Company
The funds from Concord Enviro Systems’ IPO will be used for various strategic initiatives. These include capital expenditure for developing a greenfield assembly unit and expanding manufacturing facilities through its wholly owned subsidiary, Concord Enviro FZE, and Rochem Separation Systems (India) Private Limited.
Additionally, funds will be used for purchasing plant and machinery, repaying borrowings, supporting working capital requirements, and expanding the pay-per-use business through a joint venture with Reserve Enviro Private Limited. The remaining funds will be allocated for technology investments and general corporate purposes.
Concord Enviro Systems IPO Financial Background
Concord Enviro Systems Limited has demonstrated strong financial growth. From FY 2023 to FY 2024, the company’s revenue rose by 46%, and its profit after tax (PAT) skyrocketed by 655%. Key financial metrics show positive trends, with assets growing to ₹640.09 crore and net worth reaching ₹319.71 crore as of August 2024. The company’s borrowing also increased to ₹167.53 crore, reflecting its expansion efforts.