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Denta Water and Infra Solutions Ltd has officially launched its Initial Public Offering (IPO) today, January 22, 2025.
The IPO, which aims to raise ₹220.50 crore, is priced within a band of ₹279 to ₹294 per share. The subscription period is open until January 24, 2025, providing investors a limited window to participate in this significant market opportunity.
The offering comprises a fresh issue of 75 lakh equity shares, with no secondary sale of existing shares.
Proceeds from the IPO will be used to bolster the company’s working capital by ₹150 crore, while the remaining funds will be allocated for general corporate purposes.
The initiative is expected to further strengthen Denta Water’s capabilities in delivering advanced water management and infrastructure solutions.
Strong Start on Day 1
As of 10:12 AM IST on the opening day, the IPO achieved 52% subscription. The retail investor portion was subscribed at 68%, while the non-institutional investors’ quota stood at 83%.
Meanwhile, the qualified institutional buyers’ segment is anticipated to gather momentum in the coming days. The early subscription numbers reflect robust investor interest, underscoring confidence in Denta Water’s business model and growth prospects.
Anchor Investment Secured
In a strategic move prior to the IPO, Denta Water raised approximately ₹66 crore from anchor investors, including both domestic and international institutional players.
This pre-IPO funding underscores the company’s credibility and its strong market position as a key player in water engineering, procurement, and construction (EPC) services.
Listing Date and Allotment Details
The company is set to finalize the share allotment on January 27, 2025. The equity shares are scheduled to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on January 29, 2025.
This milestone will mark Denta Water’s transition to a publicly traded entity, opening new avenues for growth and stakeholder engagement.
Analysts Recommend Long-Term Investment
Market analysts have expressed optimism about the IPO, recommending it as a long-term investment.
At the upper price band, the company’s valuation stands at a Price-to-Earnings (P/E) ratio of 13.14x and an Enterprise Value-to-EBITDA (EV/EBITDA) ratio of 9.13x. Post-issue, the company’s market capitalization is expected to reach ₹785 million, with a return on net worth of 36.36%.
About Denta Water and Infra Solutions Ltd
Founded in 2016, Denta Water and Infra Solutions Ltd has rapidly established itself as a leader in water management and infrastructure services.
The company specializes in cutting-edge solutions for water engineering, groundwater recharge through recycled water, and EPC services for infrastructure projects.
With a strong order book and a commitment to sustainability, Denta Water is poised for accelerated growth in the years ahead.
The IPO is seen as a critical step in Denta Water’s journey, enabling the company to expand its operations and cement its position as an industry leader.
Investors and market watchers will be closely monitoring the subscription trends and subsequent listing performance of this promising enterprise.
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