Effwa Infra and Research IPO is set to launch soon, offering a book-built issue of 62.53 lakh shares, combining a fresh issue of 53.17 lakh shares and an offer for sale of 9.36 lakh shares.
Company Overview
Effwa Infra & Research Limited, founded in 2014, provides engineering, consulting, procurement, construction, and integrated project management services in the water pollution control sector. The company focuses on wastewater and industrial effluent treatment, solid waste treatment and disposal, aeration systems, hazardous waste management, and water treatment plants. They also manage project organization, procurement, financing, and implementation.
Effwa Infra & Research IPO Dates
| Detail | Value |
|---|---|
| Effwa Infra & Research IPO Date | July 5, 2024 to July 9, 2024 |
| Effwa Infra & Research IPO Listing Date | July 12, 2024 |
| Effwa Infra & Research IPO Price | ₹78 – ₹82 per share |
| Effwa Infra & Research IPO Lot Size | 1600 Shares |
| Effwa Infra & Research IPO Total Issue Size | ₹51.27 crores |
| Effwa Infra & Research IPO Basis of Allotment | July 10, 2024 |
| Effwa Infra & Research IPO Initiation of Refunds | July 11, 2024 |
| Effwa Infra & Research IPO Credit of Shares to Demat | July 11, 2024 |
| Effwa Infra & Research IPO Issue Type | Book Built Issue IPO |
| Effwa Infra & Research IPO Listing At | NSE SME |
Effwa Infra & Research Limited IPO Key Dates
- Subscription Period: July 5, 2024 – July 9, 2024
- Allotment Finalization: July 10, 2024
- Listing Date: July 12, 2024
Effwa Infra IPO GMP Today
- Effwa Infra and Research IPO, a book-built issue valued at Rs 51.27 crores, comprises a fresh issue of 53.17 lakh shares aggregating to Rs 43.60 crores and an offer for sale of 9.36 lakh shares amounting to Rs 7.68 crores.
- The subscription window for Effwa Infra and Research IPO opens on July 5, 2024, and closes on July 9, 2024. The allotment is expected to be finalized on Wednesday, July 10, 2024, with the IPO listing on NSE SME anticipated for Friday, July 12, 2024.
- Priced between ₹78 to ₹82 per share, the minimum lot size for application is set at 1600 shares, requiring a retail investor to commit a minimum of ₹131,200. High Net Worth Individuals (HNIs) must invest in a minimum of 2 lots (3,200 shares), amounting to ₹262,400.
Financial Information
| Metric | Value |
|---|---|
| Face Value | ₹10 per share |
| Price Band | To be announced |
| Lot Size | To be announced |
| Total Issue Size | 6,252,800 shares |
| Fresh Issue | 5,316,800 shares |
| Offer for Sale | 936,000 shares |
Key Stakeholders
- Lead Manager: Shreni Shares Limited
- Registrar: Bigshare Services Pvt Ltd
- Market Maker: Rikhav Securities
Reservation Details
- QIB: Not more than 50% of the net offer
- Retail: Not less than 35% of the offer
- NII (HNI): Not less than 15% of the offer
- Market Maker Portion: 324,800 shares
Promoter Holding
- Pre-Issue: 99.99%
- Post-Issue: 72.99%
Effwa Infra And Research IPO Financial Performance
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
|---|---|---|---|
| Revenue (₹ in lakhs) | 10,436.67 | 11,509.57 | 14,515.93 |
| Equity (₹ in lakhs) | 1,842.85 | 2,355.89 | 3,715.05 |
| Expenses (₹ in lakhs) | 9,856.33 | 10,839.20 | 12,670.16 |
| Profit and Loss After Tax (₹ in lakhs) | 459.99 | 513.04 | 1,380.06 |
| RoNW (%) | 24.96 | 21.78 | 37.15 |
| NAV per Equity Share (₹) | 10.34 | 13.21 | 20.84 |
| Diluted EPS only (₹) | 2.58 | 2.88 | 7.74 |
| Total Assets (₹ in lakhs) | 4,648.21 | 6,478.54 | 8,302.83 |
| Total Liabilities (₹ in lakhs) | 2,805.36 | 4,122.65 | 5,127.78 |
| Debt Equity Ratio | 0.56 | 0.69 | 0.38 |
| Current Ratio (in times) | 1.59 | 1.52 | 1.68 |
IPO Objectives
Effwa Infra & Research Limited is launching an IPO with the primary objectives of funding its working capital and upgrading office equipment.
- Funding Working Capital Requirements: The company plans to allocate INR 33.00 crores from the net proceeds in the fiscal year 2024-2025 towards working capital. This investment aims to boost profitability, unlock internal accruals for growth, and help achieve business targets.
- Capital Expenditure for Office Equipment: Effwa Infra & Research Limited intends to spend INR 0.41 crores from the net proceeds on upgrading office equipment and IT software at their registered office. This enhancement is expected to improve coordination and communication among teams across various project locations.
- General Corporate Purposes: The remaining net proceeds will be utilized for general corporate purposes, which include funding growth opportunities, covering business expenses, servicing borrowings, and enhancing brand building efforts.
Effwa Infra & Research Limited IPO FAQs
When does the Effwa Infra & Research Limited IPO open for subscription?
The IPO opens for subscription on July 5, 2024.
What is the closing date for the Effwa Infra & Research Limited IPO?
The IPO closes on July 9, 2024.
What is the price band for the Effwa Infra & Research Limited IPO?
The price band is set at ₹78 to ₹82 per share.
When will the allotment for the Effwa Infra & Research Limited IPO be finalized?
The allotment is expected to be finalized on July 10, 2024.
Conclusion
Effwa Infra and Research IPO presents an opportunity to invest in a company with significant growth in revenue and profit. However, potential investors should carefully consider the financials, the objectives of the issue, and the overall market conditions before making a decision.
Avinash Dyal