Synopsis: Price band set at ₹279-₹294 per share; minimum application of 50 shares. As of January 24, 2025, the IPO was subscribed 216.35 times overall. Trading at a premium of ₹137, indicating a potential listing gain of approximately 46.6%. Established in 2016, Bengaluru-based firm specializing in water management infrastructure projects, including groundwater recharge initiatives.
Denta Water and Infra Solutions, a Bengaluru-based company specializing in water management infrastructure, has garnered significant attention with its Initial Public Offering (IPO).
The IPO, which opened on January 22, 2025, and concluded on January 24, 2025, offered shares within a price band of ₹279 to ₹294 each, with a minimum application requirement of 50 shares.
Investor response has been overwhelmingly positive.
By the final day, the IPO was subscribed 216.35 times overall, reflecting strong demand across all investor categories.
In the grey market, Denta Water's shares are trading at a premium of ₹137 over the upper issue price, suggesting a potential listing gain of approximately 46.6% for investors.
Founded in 2016, Denta Water and Infra Solutions has established itself in designing, installing, and commissioning water management infrastructure projects, with a particular focus on groundwater recharge.
The company's financial performance has been robust, with revenue growing at a CAGR of 41.3%, EBITDA at 23.6%, and PAT at 24.8% between FY22 and FY24.
Brokerage firms have expressed optimism about the company's prospects, citing its strong financial track record, recent project acquisitions, increasing demand for water treatment solutions, and reasonable valuations.
However, they also caution about potential risks, including dependence on government projects, joint ventures, political volatility, and high competition in the sector.
The IPO's allotment is scheduled for January 27, 2025, with refunds expected by January 28, 2025.
Shares are anticipated to be credited to demat accounts on the same day, and the listing is planned for January 29, 2025.
Conclusion:
Denta Water and Infra Solutions' IPO has attracted substantial investor interest, underscoring confidence in the company's business model and growth trajectory.
While the strong subscription numbers and grey market premium indicate positive market sentiment, potential investors should remain mindful of the associated risks and conduct thorough due diligence before making investment decisions.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
