Denta Water IPO Latest Subscription Status Day 2 : The IPO of Denta Water and Infra Solutions, a company with expertise in water management and infrastructure solutions, is getting a strong response from investors. This IPO has been filled almost 50 times till 5 pm on its second day. The size of the IPO is Rs 220.50 crore and it had received bids of Rs 2246 crore on the very first day. Whereas in the gray market, the craze for this has reduced a bit, but is still intact. Brokerage houses are looking positive on IPO.
This IPO can be subscribed till 24 January 2025. The company has fixed the price band for this at Rs 279 to Rs 294 per share. The IPO is a completely fresh issue and there is no offer for sale. The market cap of the post issue company is estimated to be Rs 745 to 785 crore. Integrated Registry Management Services Pvt Ltd is the registrar to the issue.
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Denta Water: Subscription Status
Denta Water’s IPO is getting strong subscription from investors. This IPO has been subscribed almost 50 times till 5 pm on its second day. 35 percent share is reserved for retail investors in the IPO and it has been subscribed 43.34 times so far. The IPO has 50% portion reserved for QIB, and it has been filled 4.75 times so far. Whereas 15% share has been reserved for NII and till now it has been filled 128.16 times. Against the issue size of Rs 220.50 crore, it has so far received bids of Rs 7793 crore.
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Denta Water GMP: at 51%
The craze in the gray market regarding the IPO of Denta Water and Infra Solutions has reduced somewhat, the trend remains intact. The unlisted stock of the company is trading at a premium of Rs 150 in the gray market. This is a 51 percent premium compared to the upper price band of Rs 294. Whereas on Wednesday it was 54 percent. If this trend continues then the company’s stock may be listed at Rs 444 compared to the IPO price of Rs 294.
Denta Water IPO: Valuation and View
Brokerage house SBI Securities has given subscribe rating to the IPO of Denta Water. The brokerage says that the valuation of the company has been done at post issue capital of upper price band at P/E of FY24 and EV/EBITDA multiple of 13.1x/9.8. The company’s Revenue, EBITDA and PAT witnessed CAGR growth of 41.3%, 23.6% and 24.8% during FY22-FY24 period respectively at Rs 239 crore, Rs 79 crore and Rs 60 crore. Industry forecasts indicate healthy growth for the Indian water and wastewater treatment market, which is projected to expand at a CAGR of 6.2% for the CY24E-CY30E period.
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Denta Water: Key Features of the Company
1. Expertise in Water Management: Since incorporation, the company has completed 32 water management infrastructure projects for the Government of Karnataka. It has built its reputation as a water management solution provider. Especially in the field of ground water recharge projects and lift irrigation projects.
2. In-house experts: The company has an in-house design and engineering team that focuses on design capabilities for geographic complexities and critical aspects of projects.
3. Strong Order Book: As of November 30, 2024, the company has 17 ongoing projects to be implemented by them or under consortium. The company’s share in the total contract value is Rs 1100.4 crore, out of which Rs 1066.7 crore is for water management projects.
Denta Water: What is the risk with the company?
Revenue concentration from government (increasing from 18.3% in FY 2023 to 63.4% in FY 2024)
Delay in completion of projects
Cases pending against promoter
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Denta Water: What does the company do?
Denta Water & Infra Solutions Limited is an emerging water management and infrastructure solutions company, engaged in design, installation and commissioning of water management infrastructure projects with expertise in groundwater recharging projects. Apart from this, the company also undertakes construction projects in the field of railways and highways. The company has successfully executed major projects like Bayarapura, Hiremagaluru LIS and KC Valley, contributing to Bengaluru’s waste water management and supporting the Jal Jeevan Mission (JJM) of the government.
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