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Denta Water and Infra Solutions IPO
Denta Water & Infra Solutions Ltd
₹13,950 /50 sharesMinimum Investment
Denta Water and Infra Solutions IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| BSE | ₹294.00 | ₹325.00 | ₹31.00 (10.54%) |
Denta Water and Infra Solutions IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 22 Jan ‘25 - 24 Jan ‘25 | ₹13,950 | 50 | ₹279 - ₹294 |
| Issue Size | IPO Doc |
|---|---|
| 220.50Cr | RHP PDF |
Subscription rate
As of 24 Jan'25, 05:00 PM
| Qualified Institutional Buyers | 203.67x |
| Non-Institutional Investor | 468.28x |
| Retail Individual Investor | 82.42x |
| Total | 199.75x |
About Denta Water and Infra Solutions
Founded in
2016
Managing director
Mr. Manish Shetty
Parent organisation
Denta Water & Infra Solutions Ltd
Strengths & Financials of Denta Water and Infra Solutions
Strengths
Risks
Denta Water has been a part of key projects like the Byrapura and Hiremagaluru LIS Project and the Karagada LIS Project. The company also played a significant role in the first phase of the KC Valley project and actively contributed to the Government of India’s "Jal Jeevan Mission."
The company’s water management projects are primarily concentrated in Karnataka. Denta Water has completed 32 water management projects as of November 30, 2024, working as both main contractors and subcontractors.
As of November 30, 2024, Denta Water has developed 445.77 kilometres of water management infrastructure. The company’s work includes pumping secondary treated sewage water from cities like Bangalore and Mysore to replenish dried lakes in districts such as Kolar, Chikkaballapura, and Ramanagara in Karnataka. The company has also supplied drinking water to peripheral habitations from reservoirs.
The company offers concept-to-commissioning services, catering to sub-sectors such as groundwater recharging, dam and reservoir engineering, lift irrigation, water supply and sanitation, and urban and rural development.
The company utilises advanced technologies, including Geographic Information Systems (GIS) for mapping and analysing topographic data, soil testing equipment for soil investigations, and GPS technology for precise location mapping. The company claims to employ computer-aided design software for cost-effective and structurally sound foundations and structural engineering software for assessing the strength and thickness of jack wells and intake wells. Additionally, they use materials like Mild Steel (MS), Ductile Iron (DI), and High-Density Polyethylene (HDPE) pipes for water transportation, as well as coating and grouting techniques to protect and reinforce pipelines.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 119.57 crore in FY22 to Rs 174.32 crore in FY23 to Rs 238.60 crore in FY24. PAT increased from Rs 38.34 crore in FY22 to Rs 50.11 crore in FY23 to Rs 59.72 crore in FY24.
Denta Water relies heavily on government clients, particularly from the Government of Karnataka, for a significant portion of its revenue. Karnataka government clients contributed Rs 81.80 crore (83.98%) as of September 30, 2024, and Rs 146.34 crore (63.40%), Rs 29.26 crore (18.25%), and Rs 23.54 crore (23.84%), to the revenue from operations in FY24, FY23, and FY22, respectively. Since most of the company's projects involve government contracts, it is exposed to risks such as contract termination or invocation. Any abrupt termination could negatively impact the company's finances and operations.
Most of the company’s revenue is generated from Karnataka. This creates a concentration risk. Any adverse developments in the regions could negatively impact the company’s operations and finances.
The company’s revenue and profitability are highly dependent on securing new projects. Since project awards are beyond its direct control, any failure to consistently win contracts could adversely affect its financial results and impact overall business operations.
There is an ongoing litigation case against the company’s promoter, Sowbhagyamma. Any adverse judgment in this case could be detrimental to the company’s business prospects.
Denta Water collaborates with joint venture partners to execute projects. These arrangements could expose the company to liabilities in case of partner underperformance or failure. Additionally, premature termination of such ventures could harm the company's financial health, and operations.
The company derives a major portion of its revenue from a small group of key customers. The top 10 customers contributed Rs 49.23 crore (50.35%) as of the six months ended September 30, 2024, and Rs 164.87 crore (69.10%), Rs 103.67 crore (59.47%), and Rs 83.37 crore (69.73%) to the revenue from operations in FY24, FY23, and FY22, respectively. Any loss of one or more of these customers or a decline in business from them could adversely affect the company’s business and financial performance.
A substantial portion of the company’s revenue comes from its water management business, which is secured through competitive bidding. This segment contributed Rs 95.35 crore (97.51%) as on September 30, 2024, and Rs 223.39 crore (93.62%), Rs 157.66 crore (90.44%), and Rs 99.93 crore (83.58%) to the revenue from operations in FY24, FY23, and FY22, respectively. There is no guarantee that projects bid on will be awarded, or that such projects will generate any revenues. Such situations could adversely impact the company’s financial condition.
As of November 30, 2024, the company’s total outstanding borrowings stood at Rs 54.72 crore. Any inability to repay or service these loans could adversely affect the company’s financial position.
Denta Water and Infra Solutions Financials
*All values are in Rs. Cr
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Application Details of Denta Water and Infra Solutions IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹279 - 294 | ₹2 Lakh |
| High Networth Individual | ₹279 - 294 | ₹2 - 5 Lakh |
For Denta Water and Infra Solutions IPO, eligible investors can apply as Regular.