Effwa Infra & Research Ltd, founded in 2014, has quickly made a name for itself in the engineering and construction industry. Specializing in water pollution control, wastewater treatment, solid waste management, and integrated project management, the company has recently attracted significant attention with its successful initial public offering (IPO). This article explores Effwa Infra & Research Ltd’s IPO performance, market reception, financial health, and future prospects.
Effwa Infra & Research Ltd IPO: A Major Success
The IPO of Effwa Infra & Research Ltd, which opened on July 5, 2024, has garnered impressive investor interest. This SME IPO was heavily oversubscribe on the first day, reflecting strong demand. The IPO, which closed on July 9, 2024, offered shares within a price band of ₹78 to ₹82 per share. With the goal of raising ₹51.27 crore, the offering included a fresh issue of 53.17 lakh shares worth ₹43.60 crore and an offer-for-sale (OFS) of 9.36 lakh shares totaling ₹7.68 crore.
Effwa Infra & Research Ltd successfully raised ₹14.34 crore from anchor investors before the IPO opened, signaling strong institutional backing. The minimum investment required from retail investors was ₹131,200 for a lot size of 1,600 shares. Shreni Shares Limited served as the book-running lead manager, while Bigshare Services Pvt Ltd acted as the IPO registrar.
Exceptional Investor Response and Subscription Status
Effwa Infra & Research Ltd’s IPO saw an extraordinary subscription rate. By the second day of bidding, the IPO had been subscribed 37.55 times, with bids for 15.69 crore shares against an offer of 41.79 lakh shares. The retail category was particularly strong, with a subscription rate of 62.52 times. Non-Institutional Investors (NII) showed robust interest, subscribing 28.44 times.
The overall subscription rate reached 54.72 times, with bids for 22.86 crore shares against the 41.79 lakh shares on offer. Notably, the non-institutional investor segment receive 42.27 times subscription, while retail individual investors (RIIs) portion was subscribed 90.55 times. Qualified Institutional Buyers (QIBs) also showed interest, with a 36% subscription rate.
Grey Market Premium (GMP) and Market Sentiment
The Grey Market Premium (GMP) for Effwa Infra & Research Ltd’s shares reflects strong market sentiment. On July 8, 2024, the GMP stood at ₹95 per share, indicating a trading price of ₹177 per share in the grey market—an impressive premium of nearly 116% over the issue price of ₹82 per share. By the morning of July 8, the GMP had increased to ₹111, suggesting a 135.37% expected listing gain. This rise in GMP highlights investor confidence and the anticipated strong performance of Effwa Infra & Research Ltd’s shares post-listing.
Company Overview and Financial Performance
Effwa Infra & Research Ltd is renowned for its expertise in water pollution control and waste management. The company offers a range of services, including wastewater and industrial effluent treatment, solid waste treatment and disposal, aeration systems, hazardous waste management, and water treatment plants. This broad service portfolio positions Effwa Infra & Research Ltd as a key player in addressing environmental challenges.
Financially, the company has shown impressive growth. In the fiscal year 2023-24, Effwa Infra & Research Ltd’s revenue grew by 26.08%, reflecting its expanding market presence and successful project execution. Additionally, the company’s profit after tax (PAT) soared by 169%, underscoring its operational efficiency and effective cost management.
Future Prospects and Strategic Vision
The successful IPO and strong financial performance of Effwa Infra & Research Ltd pave the way for its future growth. The capital raised through the IPO will support the company’s expansion efforts, enabling it to undertake larger projects, invest in advanced technologies, and enhance its market position.
The demand for sustainable and efficient water treatment solutions is expect to rise, driven by stringent environmental regulations and the need for eco-friendly practices. Effwa Infra & Research Ltd is well-position to meet these demands, with its expertise in water pollution control and waste management. The focus on smart cities and infrastructure development also presents opportunities for the company to expand its operations and contribute to sustainable urbanization.
Conclusion
Effwa Infra & Research Ltd’s journey from its founding in 2014 to its successful IPO in 2024 showcases its growth, resilience, and strategic vision. The overwhelming response to its IPO, combined with its strong financial performance and promising growth prospects. Which establishes Effwa Infra & Research Ltd as a leading player in the engineering and construction sector. As the company continues to innovate and expand. It is set to play a crucial role in tackling environmental challenges and driving sustainable development.
