CHENNAI/AHMEDABAD, DEC 17
Concord Enviro Systems Limited on Monday announced its IPO is set to open for bidding on December 19, in a price range of ₹665-701 per share. Investors can bid for a minimum of 21 equity shares and in multiples thereof. The anchor book for the IPO will open on Wednesday, December 18. The bid/offer period will close on Monday, December 23, 2024.
The IPO comprises a fresh issue of ₹175 crore and an offer-for-sale (OFS) of up to 46.40 lakh equity shares, amounting to ₹325.32 crore, by its promoters and existing shareholders. At the upper end of the price band, the company aims to raise a total of ₹500.32 crore.
- Price Band fixed at ₹665 to ₹701 per equity share of face value of ₹5 each
- The Bid /Offer Period will open on Thursday, December 19, 2024 and close on Monday, December 23, 2024
- The Anchor Investor Bid/Offer Period opens and closes on Wednesday, December 18, 2024
- Bids can be made for a minimum of 21 Equity Shares and in multiples of 21 Equity Shares thereafter
- The company reported a net profit of ₹41.44 crore for FY 2023-24
The Company proposes to utilize the net proceeds towards funding (i) investment in its wholly owned Subsidiary, Concord Enviro FZE for financing its capital expenditure requirements for the greenfield project to develop an assembly unit to assemble systems and plants for treatment of water, waste water and related membrane modules, estimated to ₹25.00 crore; (ii) investment in its wholly owned subsidiary, Rochem Separation Systems (India) Private Limited for financing its capital expenditure requirements for the brown field project to expand the manufacturing facilities, storage and supporting activities estimated to ₹10.50 crore; (iii) funding capital expenditure requirements of the Company for purchase of plant and machinery estimated to ₹3.21 crore; (iv) investment in its wholly owned Subsidiary, CEF for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by CEF estimated to ₹50.00 crore; (v) investment in CEF, for funding working capital requirements of CEF estimated to ₹20.00 crore; (vi) investment in its joint venture, Roserve Enviro Private Limited to grow the Company’s pay per use/pay as you treat business estimated to ₹10 crore; (vii) investment in technology and other growth initiatives for access to new markets estimated to ₹23.50 crore and balance amount general corporate Purposes.
The IPO has allocated 50% of the net offer to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors.
Concord Enviro Systems, founded in 1999, is a global leader in water and wastewater treatment, offering innovative solutions such as zero-liquid discharge (ZLD) technology. The company provides end-to-end services across the entire value chain, including design, manufacturing, installation, operations and maintenance (O&M), and IoT-enabled digitalization.
The company exports solutions to North America, Latin America, Africa, the Middle East, and Southeast Asia.
As of March 31, 2024, Concord Enviro Systems had provided services to 353 domestic and 24 international customers across sectors like pharmaceuticals, chemicals, food and beverages, defence, automotive, steel, and textiles. The company operates two manufacturing facilities, one in Vasai, India, and the other in Sharjah, UAE.
For the five months ended August 31, 2024, the company reported a net profit of ₹0.52 crore on revenue of ₹208.02 crore. For the financial year 2023-24, it posted a net profit of ₹41.44 crore with revenue of ₹512.27 crore.
Shares of Concord Enviro Systems are set to be listed on both the BSE and NSE on Friday, December 27.
Motilal Oswal Investment Advisors Limited and Equirus Capital Private Limited are the book running lead managers to the offer.
