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 Limited IPO Key Dates
- Subscription Period: July 5, 2024 – July 9, 2024
- Allotment Finalization: July 10, 2024
- Listing Date: July 12, 2024
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%
Financial Performance
| Metric | Value |
|---|---|
| Revenue (2024) | ₹14,551.46 Lakhs |
| Profit After Tax (2024) | ₹1,380.06 Lakhs |
| Assets (2024) | ₹8,302.83 Lakhs |
| Net Worth (2024) | ₹3,715.05 Lakhs |
| Debt/Equity Ratio | 0.38 |
| Return on Equity (ROE) | 45.46% |
| Return on Capital Employed (ROCE) | 40.99% |
| PAT Margin | 9.51% |
IPO Objectives
The net proceeds from the fresh issue will be used for:
- Funding working capital requirements
- Funding capital expenditure for new office equipment
- General corporate purposes
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