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Denta Water and Infra Solutions IPO 2025: Key Details & Investment Guide

Denta Water and Infra Solutions IPO 2025: Key Details & Investment Guide

Denta Water & Infra Solutions Ltd

Denta Water and Infra Solutions Limited, a growing name in water management and infrastructure, is gearing up to launch its ₹220.5 crore Initial Public Offering (IPO) from 22nd January to 24th January 2025. With its specialised expertise in groundwater recharge and infrastructure projects, the company presents a unique opportunity for investors looking to participate in the evolving water solutions sector. 

Here are 10 key things you should know before investing in the Denta Water and Infra Solutions Limited IPO: 


  1. What makes Denta Water a good opportunity?

Denta Water and Infra Solutions Limited focuses on addressing water scarcity and infrastructure challenges. The company has a solid track record of executing major projects like Byrapura, Hiremagaluru LIS, and KC Valley, contributing significantly to wastewater management and groundwater recharge. 

Additionally, it operates a unique portfolio, including 98 acres of agricultural land producing coffee, pepper, and cardamom, as well as a beach resort in Udupi generating supplementary revenue. 

With an efficient business model and established expertise in water management, Denta Water is poised to benefit from growing demands for sustainable water solutions. 


  1. What are the IPO dates, price band, and issue size?

Key details of the IPO are as follows: 

  • IPO dates: January 22nd – 24th, 2025 
  • Listing date: January 29th, 2025 
  • Price band: ₹279 – ₹294 per share 
  • Total issue size: ₹220.5 Cr 
  • Face value: ₹10 per share 
  • Listing exchanges: BSE, NSE 
  • Lot size: 50 shares 
  • Promoters: Sowbhagyamma, Sujith T R, C Mruthyunjaya Swamy, and Hema H M 

  1. What is the minimum investment for the IPO?

The minimum investment required to apply for the Denta Water IPO is₹13,950, based on the lot size of 50 shares at the lower price band of₹279 per share. However, to increase your chances of allotment, we recommend applying at the upper price band, which would require ₹14,700 (50 shares at ₹294 per share). 


  1. What does the company do?

Founded in 2016, Denta Water and Infra Solutions Limited specialises in water and infrastructure management projects. 

  • Services: designing, installing, and commissioning water management infrastructure, including groundwater recharge through recycled water. 
  • Projects: Byrapura, Hiremagaluru LIS, and KC Valley, supporting Bengaluru’s wastewater management. 
  • Diversification: agricultural operations and a revenue-generating beach resort in Udupi. 

The company also plays a significant role in the Government of India’s Jal Jeevan Mission by providing advanced water engineering solutions. 


  1. What is the objective of the IPO?

The primary objectives of the IPO are: 

  • To meet the company’s working capital requirements. 
  • For general corporate purposes. 

  1. 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% 

  1. What are the key strengths and risks?

Strengths:

  • Established expertise in groundwater recharge and water infrastructure. 
  • In-house capabilities in designing and engineering water management projects. 
  • Strong order book with timely execution of projects. 
  • Diversified revenue sources, including agricultural land and a beach resort. 

Risks:

  • Past legal enquiries involving a promoter may pose reputational risks. 
  • High revenue dependence on government clients, which has increased from 18.25% in FY23 to 63.40% in FY24. 
  • Potential delays in project completion and time overruns. 
  • Reliance on securing new projects for sustained revenue growth. 

  1. What is the financial performance of Denta Water?

The company has demonstrated steady financial growth over the years (₹ Cr): 

Period Ended  31 Mar 2024  31 Mar 2023  31 Mar 2022 
Assets  ₹219.85  ₹123.28  ₹60.64 
Revenue  ₹241.84  ₹175.75  ₹119.64 
Profit After Tax  ₹59.73  ₹50.11  ₹38.34 

  1. What is the allotment and listing timeline?

  • Basis of allotment: January 27, 2025 
  • Refund initiation: January 28, 2025 
  • Shares credited to demat accounts: January 28, 2025 
  • Listing date: January 29, 2025 

  1. Should you invest in Denta Water and Infra Solutions Limited’s IPO?

Denta Water and Infra Solutions Limited stands out with its expertise in water management and infrastructure, backed by strong financials and a diversified business model. However, investors should carefully assess the risks, particularly its dependency on government contracts and potential reputational challenges. 

As always, evaluate your investment goals and risk appetite before participating in this IPO.

 

 

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