Denta Water and Infra IPO: Everything You Need to Know


Denta Water and Infra Solutions Ltd, based in Bengaluru, has opened its Initial Public Offering (IPO) on January 22, 2025. Specializing in water management and infrastructure solutions, the company presents an exciting investment opportunity for those looking to tap into sustainable and growing sectors.

IPO Overview

  • Issue Size: The company plans to raise ₹220.50 crore through a fresh issuance of 7.5 million equity shares.
  • Price Band: Shares are priced between ₹279 and ₹294 per share.
  • Lot Size: The minimum bid is for 50 shares, equating to ₹14,700 at the upper price range.
  • IPO Period: The issue will remain open from January 22 to January 24, 2025.

Purpose of the IPO

The company aims to use the proceeds for:

  1. Working Capital Requirements: Allocating ₹150 crore for operational needs.
  2. General Corporate Purposes: Supporting ongoing business growth and activities.

Company Profile

Founded in 2016, Denta Water and Infra Solutions has successfully executed 32 water management projects, such as groundwater recharge initiatives, primarily for the Government of Karnataka. The company is recognized for its innovation in addressing water and infrastructure challenges.

Financial Highlights

  • The company’s revenue increased from ₹119.5 crore in FY22 to ₹238.5 crore in FY24.
  • EBITDA grew from ₹51.8 crore in FY22 to ₹79.1 crore in FY24.
  • Net profit rose from ₹38.3 crore in FY22 to ₹59.7 crore in FY24.

Market Sentiment and Recommendations

Analysts have varying views on the IPO:

  • Geojit Financial Services: Encourages investing for short- to medium-term growth due to the company’s strong performance and focus on water projects.
  • Canara Bank Securities: Maintains a neutral stance, citing growth prospects but pointing out risks like heavy dependence on government contracts and possible delays in project execution.

Grey Market Premium (GMP)

The GMP for the Denta Water and Infra IPO was ₹165 per share on January 22, 2025. This indicates a potential listing gain of around 56% over the upper price limit of ₹294.

Key Dates

  • Closing Date: January 24, 2025
  • Allotment Finalization: January 27, 2025
  • Listing Date: January 29, 2025

Conclusion

Denta Water and Infra Solutions’ IPO provides an opportunity to invest in a company that addresses critical water and infrastructure challenges. The financial growth, combined with a strong market potential, makes this IPO worth considering. However, as with any investment, it is essential to review the risks and consult with financial advisors.

Disclaimer: This content is for informational purposes only. Always seek expert financial advice before investing.

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