Denta Water & Infra Solutions Ltd
Denta Water and Infra Solutions Limited, established in 2016, is set to launch its Initial Public Offering (IPO) to raise ₹220.50 crores. The IPO will open on January 22, 2025, and close on January 24, 2025.
Company Overview
Denta Water and Infra Solutions Limited specializes in designing, installing, and commissioning water management infrastructure projects, with a particular focus on groundwater recharge. The company also undertakes construction projects in the fields of railways and highways. As of November 30, 2024, Denta Water had completed 32 water management projects and was actively managing 11 projects valued at ₹1,100.4 crores.
IPO Timeline
- IPO Opening Date: January 22, 2025
- IPO Closing Date: January 24, 2025
- Basis of Allotment: January 27, 2025
- Initiation of Refunds: January 28, 2025
- Credit of Shares to Demat Accounts: January 28, 2025
- Listing Date: January 29, 2025
Price Band and Lot Size
- Price Band: ₹279 to ₹294 per share
- Lot Size: 50 shares
- Minimum Investment: ₹14,700
Financials
| Financial Year | Revenue (₹ Crores) | Profit After Tax (₹ Crores) |
|---|---|---|
| 2021 | 29.44 | 9.87 |
| 2022 | 119.64 | 38.34 |
| 2023 | 175.75 | 50.11 |
| 2024 | 241.84 | 59.73 |
The company has demonstrated consistent growth in both revenue and profit over the past four years.
Strengths
- Expertise in Groundwater Recharge: Proven experience in designing and executing groundwater recharge projects.
- Diversified Revenue Streams: Income from water management projects, railways, highways, agriculture, and hospitality sectors.
- Robust Financial Performance: Consistent revenue growth and profitability with a low debt-to-equity ratio.
Risks
- Dependence on Government Contracts: A significant portion of revenue is derived from government projects, which may be subject to delays or policy changes.
- Geographical Concentration: Operations are primarily concentrated in Karnataka, exposing the company to regional risks.
- Project Execution Risks: Challenges in timely completion of projects could impact financial performance.
IPO Anchor Investors Details
The IPO has reserved 30% of the shares for anchor investors, amounting to 22,50,000 shares.
IPO Promoter Holding
| Promoter Name | Pre-Issue Holding | Post-Issue Holding |
|---|---|---|
| Sowbhagyamma | 25% | 18% |
| Sujith T R | 25% | 18% |
| C Mruthyunjaya Swamy | 25% | 18% |
| Hema H M | 25% | 18% |
IPO Grey Market Premium (GMP)
As of January 17, 2025, the Grey Market Premium for Denta Water IPO is ₹28 per share, indicating a potential listing price of ₹322 per share.
Final Thoughts
Denta Water and Infra Solutions Limited presents a compelling investment opportunity with its strong financial track record and expertise in water management infrastructure. However, potential investors should consider the risks associated with dependence on government contracts and geographical concentration. Long-term investors seeking exposure to the water infrastructure sector may find this IPO appealing.