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Denta Water shares list at 12% premium, fall short of IPO GMP estimates

Denta Water shares listed at Rs 330 per share on the BSE and Rs 325 apiece on the NSE, against the issue price of Rs 294

A Teflon resilience in markets that won’t let declines stick

Kumar Gaurav New Delhi

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Denta Water IPO listing: Shares of water and infrastructure solutions provider company Denta Water and Infra Solutions made a decent D-Street debut on January 29, 2025, following the completion of its initial public offering (IPO). Denta Water shares listed at Rs 330 per share on the BSE, reflecting a premium of Rs 36 or 12.24 per cent over the IPO allotment price of Rs 294.
 
On the National Stock Exchange (NSE), Denta Water shares listed at a slightly lower premium of 10.54 per cent, at Rs 325 apiece against the issue price.
 
Denta Water IPO listing came below grey market estimates, as ahead of the listing, the company's shares were trading at Rs 367 apiece, reflecting a grey market premium (GMP) of Rs 73 or 24.83 per cent over the issue price, according to sources tracking grey market activities.  Saying Denta Water shares made a quiet debut on the bourses, Shivani Nyati, Head of Wealth at Swastika Investmart, suggested that investors who participated in the IPO may hold onto their shares for the long term. "The company has in-house expertise in designing and engineering water management infrastructure projects. It had an order book worth ₹752+ crore, and the IPO was priced fairly," she added.
 
 
Denta Water IPO details
Denta Water's IPO, which comprises an entirely fresh issue of 75,00,000 equity shares, was available at a price band of Rs 279-294 with a lot size of 50 shares. It was open for public subscription from Wednesday, January 22, 2025, to Friday, January 24, 2025.  ALSO READ: Dr Agarwal's Health Care IPO opens today
 
The public offering was oversubscribed 221.68 times, driven by Non-Institutional Investors (NIIs), who oversubscribed 507.27 times the quota reserved for them. Among others, Qualified Institutional Buyers (QIBs) bid for 236.94 times their allocated quota, while Retail Individual Investors (RIIs) subscribed 90.56 times.
 
The basis of allotment of Denta Water IPO shares was finalized on Monday, January 27, 2025. The company has fixed Rs 294 as the issue price.
 
Denta Water, in its Red Herring Prospectus, stated that it intends to utilize the net proceeds raised through the issue to meet its working capital requirements and for general corporate purposes, subject to applicable laws.
 
Integrated Registry Management Services serves as the registrar for the issue, while SMC Capitals is the sole book-running lead manager.
 
About Denta Water and Infra Solutions
Denta Water and Infra Solutions is a water and infrastructure solutions company. It designs, installs, and commissions water management infrastructure projects, specializing in groundwater recharging projects using recycled water. The company also undertakes construction projects in railways and highways and participates in government initiatives, including the Jal Jeevan Mission for water infrastructure development.
 
As of November 30, 2024, the company has completed 32 projects related to water management infrastructure development. It has 17 ongoing projects with an aggregate contract value of Rs 1,100.43 crore as of the same date.
 

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First Published: Jan 29 2025 | 10:05 AM IST

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