Denta Water IPO made a strong stock market debut on January 29, listing at a 12% premium over its issue price of ₹294. The stock opened at ₹330 on the BSE and ₹325 on the NSE,
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Denta Water IPO Subscription Status
The Denta Water IPO received an overwhelming response across all investor categories, with a total of 52,50,000 shares offered and bids totaling 1,16,38,18,100 shares, resulting in an overall subscription of 221.68 times.
Qualified Institutional Buyers (QIBs) reserved 15,00,000 shares and subscribed 236.94 times, with significant participation from FIIs and domestic financial institutions. Non-Institutional Investors (NIIs) subscribed 507.27 times, with bids for over 57 crore shares against 11,25,000 reserved.
Retail Individual Investors (RIIs) bid for 23.77 crore shares against 26,25,000 reserved, achieving a subscription of 90.56 times. This remarkable demand underscores strong investor interest in the IPO.
Denta Water IPO GMP
Denta Water IPO had a last reported Grey Market Premium (GMP) of ₹73, suggesting an estimated listing price of ₹367 based on the upper price band of ₹294. However, the stock debuted lower than expected, listing at ₹330 on the BSE and ₹325 on the NSE, reflecting an actual premium of 12% and 10.5%, respectively. This is significantly below the anticipated 24.83% gain, indicating that market sentiment at listing was weaker than the grey market projections.
Details About Denta Water IPO
The Denta Water IPO opens for subscription from January 22 to January 24, 2025, with allotment finalized on January 27 and listing on January 29 on the BSE and NSE. This book-built issue aims to raise ₹220.50 crores through a fresh issue of 0.75 crore equity shares. The price band is set at ₹279-₹294 per share, with a minimum lot size of 50 shares requiring a retail investment of ₹14,700. sNII investors need a minimum of ₹2,05,800 (14 lots), while bNII investors require ₹10,14,300 (69 lots). The IPO allocation is divided as follows:
- QIBs (Qualified Institutional Buyers): 50%
- HNIs (Non-Institutional Investors): 15%
- Retail Investors: 35%
About Company
Incorporated in 2016, Denta Water and Infra Solutions Limited specializes in water management and infrastructure solutions, focusing on groundwater recharge projects. The company has executed major projects like Byrapura, Hiremagaluru LIS, and KC Valley, supporting Bengaluru’s wastewater management and the Jal Jeevan Mission.
It owns 98 acres of farmland in Madikeri for coffee, pepper, and cardamom cultivation and operates a revenue-generating beach resort in Udupi. Offering services from feasibility studies to infrastructure maintenance, Denta Water boasts a strong order book, proven expertise, and a track record of timely project execution. Having completed 32 projects with 89 permanent staff as of November 30, 2024, the company is well-positioned for long-term growth, making it an attractive investment opportunity.
Financial Background of Denta Water IPO
As of September 30, 2024, Denta Water and Infra Solutions reported total assets of ₹220.35 crore, with a revenue of ₹98.51 crore and a profit after tax of ₹24.2 crore.
For the full fiscal year 2024, the company achieved ₹241.84 crore in revenue and ₹59.73 crore in profit, reflecting strong financial growth from ₹175.75 crore in revenue and ₹50.11 crore in profit in 2023. Its net worth stands at ₹188.46 crore, with reserves of ₹169.26 crore and minimal total borrowing of ₹0.71 crore, showcasing a solid financial position with low debt.