Concord Enviro Systems Limited IPO Day 1 Live Updates: Key Highlights, Subscription Status, and Insights

IPO Details

• The Concord Enviro IPO is a book-built issue valued at ₹500.33 crores. This includes a fresh issue of 0.25 crore shares, totaling ₹175.00 crores, and an offer for sale of 0.46 crore shares, amounting to ₹325.33 crores.  
• The IPO opened for subscription on December 19, 2024, and will close on December 23, 2024. 
• The allotment of shares is expected to be finalized on Tuesday, December 24, 2024.
• The IPO is set to list on the BSE and NSE, with a tentative listing date of Friday, December 27, 2024.  
• The price band for the Concord Enviro IPO is fixed between ₹665 and ₹701 per share. 
• Investors can apply with a minimum lot size of 21 shares, requiring a retail investment of at least ₹14,721. For sNII , the minimum investment is 14 lots (294 shares), totalling ₹2,06,094, while for bNII, it is 68 lots (1,428 shares), amounting to ₹10,01,028.  
• The book-running lead managers for the IPO are Motilal Oswal Investment Advisors Limited and Equirus Capital Private Limited, with Link Intime India Private Ltd serving as the registrar.

Use of Proceeds

The net proceeds from the Fresh Issue will be used for various purposes, including investing in Concord Enviro FZE, a wholly owned subsidiary, to fund the capital expenditure for a greenfield project in the UAE, which involves setting up an assembly unit for water and wastewater treatment systems and membrane modules. Additionally, funds will be allocated to Rochem Separation Systems (India) Private Limited, another wholly owned subsidiary, to expand manufacturing facilities and storage capacity under the Vasai Project. The proceeds will also be utilized to purchase plant and machinery, repay or prepay certain borrowings of Concord Enviro FZE, and support its working capital needs. Further investments will be made in the joint venture, Reserve Enviro Private Limited, to grow its pay-per-use water treatment business, and in technology and growth initiatives to explore new markets. The remaining funds will be used for general corporate purposes.

Concord Enviro Systems Business Overview

Established in July 1999, Concord Enviro Systems Limited is a global provider of water and wastewater treatment and reuse solutions, specializing in advanced zero-liquid discharge (ZLD) technology.  

The company delivers comprehensive, in-house solutions across the value chain, including design, manufacturing, installation, operations and maintenance (O&M), and digitalization with IoT integration. It focuses on offering integrated wastewater treatment and ZLD solutions designed to optimize energy use and recovery, supporting industries in achieving water conservation and sustainability goals.  

The company’s operations can be categorized into four key segments:  

• Manufacturing and sale of water and wastewater treatment systems, ZLD plants, and turnkey solutions.  
• Operations and maintenance services.  
• Manufacturing and sale of consumables and spare parts, such as membranes, plants, chemicals, and related materials.  
• Installation of compressed biogas (CBG) plants.   

The company operates two manufacturing facilities, located in Vasai, India, and Sharjah, UAE. Its in-house research and development (R&D) team, consisting of 21 employees as of March 31, 2024, drives innovation and develops tailored solutions.

Financial Highlights

• Revenue increased by 46% from Rs. 350.5 crore in FY23 to Rs. 512.27 crore in FY24.
• Profit after tax (PAT) rose by 655% between the financial year ending March 31, 2024 and March 31, 2023, from Rs. 5.49 crore to Rs. 41.44 crore, respectively.