 "Concord Enviro share list at 19% premium on BSE; misses IPO GMP trend")
Concord Enviro IPO listing: Concord Enviro share price made a decent debut on the Indian stock exchanges on Friday, December 27, 2024, with a listing at Rs 832 apiece, reflecting a premium of Rs 131, or 18.68 per cent on BSE, against the issue price of Rs 701.
On NSE, the scrip listed at Rs 826, reflecting a premium of 17.83 per cent, against the issue price of Rs 701.
Shivani Nyati, head of wealth at Swastika Investmart, describes Concord Enviro Systems Limited as a global provider of water and wastewater treatment and reuse solutions, including zero-liquid discharge (ZLD) technology. While the company has demonstrated consistent financial performance, a sharp rise in profits raises some concerns about its sustainability. The IPO was reasonably priced, and the company made a modest stock market debut, listing at Rs 826 per share—a premium of 18 per cent over its issue price of Rs 701. Investors who participated in the IPO, she believes, might consider capitalising on listing gains.
Concord Enviro IPO listing underperformed the grey market expectations. Ahead of the listing, Concord Enviro IPO shares were trading at Rs 839 apiece, reflecting a grey market premium (GMP) of Rs 138, or 19.7 per cent, over the issue price, according to sources tracking grey market activities.
Concord Enviro Systems Limited IPO (Concord Enviro IPO) opened on December 19, 2024. The Concord Enviro IPO is a book-built issue, with a total size of Rs 500.33 crore. Concord Enviro IPO is structured as a combination of a fresh issue and an offer for sale (OFS). The fresh issue consists of 0.25 crore shares, which will raise Rs 175 crore, while the OFS involves 0.46 crore shares, amounting to Rs 325.33 crore. The issue closed on December 23, 2024. Concord Enviro had raised Rs 150.10 crore from anchor investors, signaling positive market interest ahead of the public offering.
The book-running lead managers (BRLM) for the Concord Enviro IPO were Motilal Oswal Investment Advisors and Equirus Capital. The registrar for the issue was Link Intime India.
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Concord Enviro will utilise the funds raised from the IPO for several key initiatives. A major portion will be invested in its wholly-owned subsidiary, Concord Enviro FZE (CEF), to support the capital expenditure requirements of a greenfield project.
Additionally, funds will be directed towards another subsidiary, Rochem Separation Systems (India) Private Limited (RSSPL), for expanding its manufacturing facilities and supporting activities as part of the ‘Vasai Project.’ The company also plans to use the funds for the acquisition of new plant and machinery to meet its capital expenditure requirements.
Further, a portion of the proceeds will be used to prepay or repay outstanding borrowings by Concord Enviro FZE, improving its financial position. The funds will also help finance the working capital requirements of Concord Enviro FZE to support day-to-day operations.
The company intends to invest in its joint venture, Reserve Enviro Private Limited, to boost its pay-per-use/pay-as-you-treat business model, which will enable growth in this segment. The funds will also be allocated towards technology upgrades and other growth initiatives aimed at expanding into new markets, ensuring continued innovation and market penetration. Finally, a portion of the funds will be used for general corporate purposes to support the company’s overall operations and long-term objectives.
About Concord Enviro
Founded in July 1999, Concord Enviro Systems is a global provider of water and wastewater treatment and reuse solutions, including advanced zero-liquid discharge (ZLD) technology. The company specialises in delivering comprehensive, in-house solutions that span the entire value chain, from design and manufacturing to installation, operation and maintenance (O&M), and digitalisation using Internet of Things (IoT).
With two manufacturing facilities located in Vasai, India, and Sharjah, UAE, and an in-house research and development (R&D) team of 21 employees as of March 31, 2024. The company exports its services to North America, Latin America, Africa, the Middle East, and Southeast Asia, boasting a diverse customer base of 377 clients, including both domestic and international industries.