Concord Enviro Systems IPO 2024: Key Details to Know Before Investing
Concord Enviro Systems Limited, a leading provider of water and wastewater treatment solutions, is launching its ₹500.33 crore Initial Public Offering (IPO) from December 19 to December 23, 2024. With its innovative zero-liquid discharge (ZLD) technology and focus on sustainability, this IPO offers an exciting opportunity for investors keen on the water treatment industry.
Here are the 10 key things you should know before investing in the International Concord Enviro Systems Limited IPO:
What makes Concord Enviro Systems a good opportunity?
Concord Enviro Systems Limited is a pioneer in the water and wastewater treatment space, offering ZLD technology and integrated solutions to a wide range of industries.
- Core Offerings: Design, manufacturing, installation, operation & maintenance, and digitalization of water treatment systems.
- Global Presence: Serving 377 customers worldwide, including pharmaceutical, chemical, and textile industries.
- R&D Edge: A dedicated in-house R&D team ensures cutting-edge solutions.
- Robust Financials: The company reported a revenue CAGR of 22.8% (FY22-FY24), indicating stable growth.
With a diversified customer base and presence in international markets, Concord Enviro Systems is well-placed to benefit from the growing global focus on water conservation and sustainability.
What are the IPO dates, price band, and issue size?
Here are the key details of the IPO:
- IPO Dates: December 19th – 23rd, 2024
- Listing Date: December 27th, 2024
- Price Band: ₹665 – ₹701 per share
- Total Issue Size: ₹500.33 Cr
- Face Value: ₹5 per share
- Listing Exchange: BSE, NSE
- Lot Size: 21 Shares
- Promoters: Prayas Goel and Prerak Goel
What is the minimum investment for the IPO?
The minimum investment for the Concord Enviro Systems IPO is ₹13,965, based on the lot size of 21 shares at the lower price band of ₹665 per share. For higher allotment chances, applying at the upper price band would require ₹14,721 (21 shares at ₹701 per share).
What does the company do?
Founded in 1999, Concord Enviro Systems Limited is a global leader in water and wastewater treatment solutions, particularly ZLD technology.
- Services: Comprehensive solutions from design to digitalization of water systems.
- Operations: Two manufacturing facilities in Vasai, India, and Sharjah, UAE.
- Clientele: 377 customers across pharmaceuticals, chemicals, defence, and more.
The company focuses on sustainable practices like energy recovery and water reuse to help industries achieve their conservation goals.
What is the objective of the IPO?
The primary objectives of the Concord Enviro Systems IPO include:
- Investment in subsidiaries for greenfield and brownfield projects.
- Expansion of manufacturing facilities and supporting activities.
- Prepayment or repayment of borrowings.
- Funding working capital requirements and growth initiatives.
- Investment in R&D and market expansion.
- General corporate purposes.
How much is reserved for retail and other investors?
The IPO allocation is as follows:
- Qualified Institutional Buyers (QIBs): Up to 50%
- Non-Institutional Investors (NIIs): At least 15%
- Retail Investors: At least 35%
What are the key strengths and risks?
Strengths:
- Market leader in ZLD technology in India.
- Backward integration with manufacturing facilities for better control.
- Diverse customer base across industries and geographies.
- Strong presence in international markets.
Risks:
- Heavy reliance on top 20 customers for over 60% of revenue.
- Dependency on effective R&D for innovation.
- Fluctuations in raw material costs may impact profitability.
- Order book subject to cancellations or delays, potentially affecting future revenue.
What is the financial performance of Concord Enviro Systems?
The company has shown steady financial growth:
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr) | 612.95 | 555.67 | 529.68 |
| Revenue (₹ Cr) | 496.86 | 343.22 | 329.37 |
| Profit After Tax (₹ Cr) | 41.59 | 12.51 | 19.24 |
What is the allotment and listing timeline?
- Basis of Allotment: December 24th, 2024
- Refund Initiation: December 26th, 2024
- Shares Credited to Demat Accounts: December 26th, 2024
- Listing Date: December 27th, 2024
Should you invest in Concord Enviro Systems Limited IPO?
Concord Enviro Systems offers a promising investment opportunity, with its leadership in ZLD technology, diversified customer base, and consistent financial growth. However, risks like dependency on top clients and order book fluctuations should be carefully considered.
Evaluate your investment goals and risk appetite before participating in this IPO.
This blog simplifies the key aspects of the IPO for potential investors. Let me know if any additional details or edits are needed!
