The Initial Public Offering of Denta Water and Infra Solutions was subscribed 17.07 times on the first day of bidding.
The issue received bids of 8,96,36,900 shares against the offered 52,50,000 equity shares, at a price band of ₹279-294, according to the data available on the stock exchanges.
Non-Institutional Investors Portion and Retail Portion were subscribed 36.23 times and 17.67 times respectively, whereas Qualified Institutional Buyer Portion was subscribed 1.67 times. The issue kicked off for subscription on Wednesday, January 22, 2025, and will close on Friday, January 24, 2025.
A day before the opening of the issue, Denta Water and Infra Solutions raised Rs 66.15 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor included Abakkus Diversified Alpha Fund-2, Persistent Growth Fund-Varsu India Growth Story Scheme 1, Rajasthan Global Securities Private Limited, Saint Capital Fund, Finavenue Capital Trust- Finavenue Growth Fund, Chhatisgarh Investments Limited, Steptrade Revolution Fund, Mint Focused Growth Fund PCC- Cell 1, Astorne Capital VCC – Arven, Aarth AIF.
Leading brokerage firms like Anand Rathi, KR Choksey, SBI Securities, BP Equities, Ventura Securities, SMIFS, Arihant Capital, Canara Bank Securities, Master Trust Capital, Eureka Securities, Geojit Financial Services, Marwadi Financial Service, GEP Capital, Adroit Financial Service, Indsec Securities have given a Subscribe rating to the issue highlighting the company`s robust financial performance, attractive valuation, and strategic positioning in the growing water management sector. The company is valued at an FY24 P/E multiple of 9.5x to 16.2x and an EV/EBITDA multiple of 9.8x at the upper price band of ₹294, which is competitive compared to peers trading at 30-35x P/E for FY25. Over FY22-FY24, the company achieved a strong CAGR of 41.3% in revenue, 23.6% in EBITDA, and 24.8% in PAT, while maintaining industry-leading EBITDA margins of 33-43%.
SMC Capitals Limited is the sole book-running lead manager for the Issue and Integrated Registry Management Services Private Limited is the registrar.