Concord Enviro Systems IPO Day 2 Live Updates: Key Highlights, Subscription Status, and Insights

Use of Proceeds

The Net Proceeds from the Fresh Issue are intended to be utilised for several purposes, including investment in the wholly-owned subsidiary, Concord Enviro FZE (CEF), to finance its capital expenditure for a greenfield project in the UAE aimed at developing an assembly unit for water, wastewater treatment systems, and related membrane modules. 

Additionally, funds will be used for investment in another wholly-owned subsidiary, Rochem Separation Systems (India) Private Limited (RSSPL), to expand the manufacturing facilities under a brownfield project in Vasai. 

The proceeds will also support the company’s capital expenditure for purchasing plant and machinery, as well as funding working capital and repaying or prepaying certain borrowings of CEF. 

Further, funds will be allocated for investment in the joint venture, Reserve Enviro Private Limited, to grow its pay-per-use/pay-as-you-treat business, along with investments in technology and other growth initiatives to enter new markets. 

Any remaining proceeds will be used for general corporate purposes.

Concord Enviro Systems IPO Day 2 Subscription Status 

(December 20, 2024, 01:43:00 PM)

On the second day of bidding, the Concord Enviro Systems IPO subscribed 0.99 times the total shares available. Non-institutional investors (NIIs) subscribed to 0.67 times the allocated portion, while retail investors subscribed to 1.66 times the shares set aside for them. Qualified institutional buyers (QIBs) saw a nil subscription rate.

Concord Enviro Systems IPO Day 1 Subscription Status 

(December 19, 2024, End of Day)

By the first day of bidding, the Concord Enviro Systems IPO saw a subscription of 0.6 times the total shares on offer. NIIs subscribed to 0.35 times their allocated portion, while retail investors subscribed to 1.04 times the shares reserved for them. The subscription rate for QIBs stood at 0.00 times.

Concord Enviro Systems Business Overview

The company provides comprehensive in-house solutions covering the entire value chain, including design, manufacturing, installation, operation and maintenance (O&M), as well as digitalisation through technologies like the Internet of Things (IoT). It specialises in integrated wastewater treatment and ZLD solutions, with a focus on energy optimisation and recovery to help industries achieve water conservation and sustainability objectives.

The company's business can be segregated into the following:-

• The manufacture and sale of water and wastewater treatment, reuse and ZLD of systems and plants and turnkey solutions;
• Operations and maintenance;
• The manufacture and sale of consumables and spare parts (including membranes, plants, chemicals and consumables); and
• Installation of compressed biogas plants (“CBG Plants”).

Concord Enviro Systems Financial Highlights

• Revenue increased by 44.76% from Rs 343 crore in FY23 to Rs 497 crore in FY24.
• Profit after tax (PAT) increased by 655% between the financial year ending March 31, 2023 and March 31, 2024, from Rs 5 crore to Rs 41 crore.

Key Ratios