The Initial Public Offering of Denta Water and Infra Solutions was subscribed times on the third day of bidding.
The issue received bids of 1,16,29,72,500 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 507.05 times and 90.34 times respectively, whereas Qualified Institutional Buyer Portion was subscribed 236.94 times.
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.