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Introduction To Envirotech Systems IPO
Envirotech Systems IPO consists of a book-built issue worth Rs 30.24 crores, comprising a fresh issue of 54 lakh shares. The subscription for Envirotech Systems IPO commences on September 13, 2024, and concludes on September 17, 2024.
The allotment for the Envirotech Systems IPO is anticipated to be finalised on Wednesday, September 18, 2024. The Envirotech Systems IPO will be listed on NSE SME on Friday, September 20, 2024.
The IPO price band for Envirotech Systems ranges from Rs 53 to Rs 56 per share, with a minimum lot of size of 2000 shares for an application. Retail investors are required to invest a minimum of Rs 1,12,000.
On the other hand, the minimum lot size investment for HNI is 2 lots (4,000 shares), totalling Rs 2,24,000.
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Share India Capital Services Private Limited acts as the book-running lead manager of the Envirotech Systems IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. Share India Securities is the market maker for the Envirotech Systems IPO.
Envirotech Systems IPO Details:
| Particulars | Details |
| IPO Date | September 13, 2024 to September 17, 2024 |
| Face Value | Rs 10 per share |
| Price Band | Rs 53 to Rs 56 per share |
| Envirotech Systems Lot Size | 2000 Shares |
| Total Issue Size | 54,00,000 shares (aggregating up to ₹30.24 Cr) |
| Fresh Issue | 54,00,000 shares (aggregating up to ₹30.24 Cr) |
| Issue Type | Book Built Issue IPO |
| Envirotech Systems Listing At | NSE SME |
| Shareholding pre-issue | 1,33,90,000 |
| Shareholding post-issue | 1,87,90,000 |
| Market Maker portion | 7,02,000 shares (Share India Securities) |
Envirotech Systems IPO Schedules:
| Particulars | Details |
| IPO Open Date | Friday, September 13, 2024 |
| IPO Close Date | Tuesday, September 17, 2024 |
| Basis of Allotment | Wednesday, September 18, 2024 |
| Initiation of Refunds | Thursday, September 19, 2024 |
| The credit of Shares to Demat | Thursday, September 19, 2024 |
| Listing Date | Friday, September 20, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 17, 2024 |
Investor category and shares offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Offer |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Application Type, Envirotech Systems Shares applied, Lot Size and, their value
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 2000 | Rs 1,12,000 |
| Retail (Max) | 1 | 2000 | Rs 1,12,000 |
| HNI (Min) | 2 | 4,000 | Rs 2,24,000 |
Anchor Investors’ Details
| Particulars | Details |
| Bid Date | September 12, 2024 |
| Shares Offered | 14,06,000 |
| Anchor Portion Size (In Cr.) | 7.87 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 18, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 17, 2024 |
Envirotech Systems Ltd Company Details
Envirotech Systems Limited was founded in 2007 and manufactures noise measurement and control solutions for industrial and commercial applications.
The company is dedicated to developing and providing custom enclosures designed to reduce the impact of noise from machinery and mechanical equipment, for both indoor and outdoor applications.
Their product range includes Noise Test Booths, Engine Test Room Acoustics, Anechoic and semi-anechoic Chambers, Acoustic Enclosures, Noise Barriers, Acoustic Louvers, Metal Doors, etc.
The company provides its services all over India and has a list of successfully executed projects across various sectors of industries like oil and gas, manufacturing, power generation, cement and steel, automotive, and construction.
Envirotech Systems has its competitive strengths in early entry into the Acoustic Insulation sector, promoters and technical team with extensive experience, dedication to research and development, established partnerships, government certifications for all of its products, and strong market presence with a wide range of customer database.
Envirotech Systems Limited IPO GMP
The Envirotech Systems SME (Small and medium-sized enterprises) IPO (Initial public offering) has established its last GMP (Grey market premium) at Rs 0. The most recent update was made on Sep 13, 2024, at 01:58 PM. The estimated listing price for Envirotech Systems SME IPO, with a price band of Rs 53 to Rs 56 per share (cap price + today’s GMP). The projected percentage gain/loss per share is 0.00%.
Financials of the Company
| Particulars | As of 31-03-2024 | As of 31-03-2023 | As of 31-03-2022 |
| Assets (Rs in lakhs) | 3,867.47 | 2,275.73 | 1,386.51 |
| Revenue (Rs in lakhs) | 4,687.95 | 2,874.78 | 1,849.54 |
| Profit After Tax (Rs in lakhs) | 1,142.88 | 257.34 | 105.73 |
| Net Worth (Rs in lakhs) | 1,960.62 | 661.73 | 404.4 |
| Reserves and Surplus (Rs in lakhs) | 621.62 | 611.73 | 354.4 |
| Total Borrowing (Rs in lakhs) | 240.5 | 260.67 | 276.61 |
Key ratios
| KPI (Key Performance Indicator) | Values |
| ROE (Return on equity) | 58.29% |
| ROCE (Return on capital employed) | 62.43% |
| RoNW (Return on net worth) | 58.29% |
| P/BV (Price to book value) | 3.83 |
| PAT (Profit after tax) Margin (%) | 24.72 |
Envirotech Systems Limited IPO RHP Detailed Analysis
Risks associated with the Company
Risks related to Legal proceedings
Presently, the company has tax proceedings against it for small amounts. Though the company has challenged these proceedings, adverse outcomes would result in financial penalties and thus impact its economic position.
Two cases of direct and indirect tax proceedings are considered, with a total amount of Rs 1.68 lakhs.
Risks related to loans taken by Promoter/s
One of the individuals in the Promoter group still needs to meet the payments on a personal loan amounting to Rs 113,225. Legal proceedings in the Debt Recovery Tribunal have commenced against this individual.
Risks related to negative cash flows
Sustained negative cash flows could affect our growth and business. Our Company had reported certain negative cash flows from our operating, investing, and financing activities in the same years as in the last three years.
Cash flows from the financing activities have been negative for FY 2021-22 and FY 2023-24. Cash flow from investing activity was negative in FY 2021-22 and FY 2022-23.
Risks related to the company’s leased premises
The business currently operates in leased office space. The future of these office-space lease agreements is uncertain. Subject to the lessor or licensor not opting for renewal or deciding to terminate the contracts, the business has to find another office space.
This may induce disruption in the operation of the business with delays, thus affecting our operations, financial performance, and brand reputation.
Risks related to default made by a Promoter
One of the Promoter group member, however still has an amount due on a personal loan amounting to Rs 113225. The bank has filed the case in Debt Recovery Tribunal (DRT) against this individual.
This matter is now being handled by the DRT. A member has contested a few charges and is in negotiations with the NBFC to settle his dues. It is important to note, however that this member has not had any relationship with the Company (whether as a Director) Employee or Shareholder of it nor have they transacted business together.
Risks related to Suppliers
Interestingly, the top 10 suppliers maintained their positions reasonably constant, accounting for 50.10%, 54.53%, and 73.35% of the total purchase volume for the Financial Year ended March 31, 2024, for the Financial Year ended March 31, 2023, and the Financial Year ended March 31, 2022, respectively.
However, this dependence on such suppliers for long-term supply agreements of the goods we trade exposes us to various types of risks. Any disruption or unfavourable terms could inflict severe damage on our operations and raise our financial cost. Furthermore, the likely impact of volatility of raw material prices on performance, business, prospects, operations, and financial condition can’t be overemphasized.
Envirotech Systems IPO FAQs:
Is Envirotech Systems IPO a mainline or SME IPO?
The Envirotech Systems IPO is an SME (Small and Medium Enterprises) IPO.
Where will be the Envirotech Systems IPO listed?
The Envirotech Systems IPO will be listed on NSE SME.
When will be the Envirotech Systems IPO listed?
The Envirotech Systems IPO will be listed on Friday, September 20, 2024.
Who are Envirotech Systems Limited’s competitors?
Solar Industries India Ltd., Bharat Forge Ltd., Carborundum Universal Ltd., Timken India Ltd., Grindwell Norton Ltd., Jindal Saw Ltd., Ramkrishna Forgings Ltd., etc are the competitors of Envirotech Systems Limited.
When is the Envirotech Systems Limited IPO Opening date?
September 13, 2024, is the opening date of Envirotech Systems Limited IPO.
When is the Envirotech Systems Limited IPO Closing date?
September 17, 2024, is the closing date of Envirotech Systems Limited IPO.
What is the minimum Envirotech Systems Limited IPO Lot size?
The minimum Lot size of Envirotech Systems Limited IPO for retail investors is 2,000 shares.
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