Concord Enviro Systems Limited IPO (Concord Enviro IPO) Detail Review –
Concord Enviro Systems Limited IPO (Concord Enviro IPO) is set to open for subscription from 19th Dec 2024 to 23rd Dec 2024. In this article we will analyze the financials , strengths and weaknesses of the Concord Enviro Systems Limited IPO (Concord Enviro IPO). Keep scrolling below to read more!
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Overview –
Established in Julu 1999, Concord Enviro Systems Limited is a global water and wastewater treatment and reuse solutions provider, including zero-liquid discharge (ZLD) technology.
The company offers in-house solutions across the entire value chain, including design, manufacturing, installation, operation and maintenance (O&M), and digitalization, such as IoT. The company provides integrated wastewater treatment and zero liquid discharge (ZLD) solutions, focusing on energy optimization and recovery to aid industries in achieving water conservation and sustainability goals.
The company’s business can be segregated into the following:-
- The manufacture and sale of water and wastewater treatment, reuse and ZLD of systems and plants and turnkey solutions;
- Operations and maintenance;
- The manufacture and sale of consumables and spare parts (including membranes, plants, chemicals and consumables); and
- Installation of compressed biogas plants (“CBG Plants”).
As of March 31, 2024, the company exports its solutions to North America, Latin America, Africa, the Middle East, and Southeast Asia and has a large customer base of 377 customers worldwide.
As of FY 2024, the company has served over 353 domestic and 24 international customers in pharmaceuticals, chemicals, food and beverage, defence, automotive, steel, and textiles, with a presence in two countries.
The company’s clients include Diageo Mexico Operaciones, S.A. De C.V., Grasim Industries Limited, AB Mauri, Anthem Biosciences Private Limited, Bhopal Glues and Chemicals Private Limited, Kasyap Sweetners Private Limited, LANXESS India Private Limited, Puja Spintex Private Limited, SFC Environmental Technologies Private Limited, SMS Limited and Tagros Chemicals India Private Limited. Furthermore, the company currently executes projects for multinational companies like Diageo Mexico Operaciones, S.A. De C.V.that include implementing a ZLD solution for their distillery in La Barca, Jalisco, Mexico and a ZLD solution for another customer at their factory in New York, United States of America.
The company has two manufacturing facilities: one in Vasai, India, and another in Sharjah, UAE. Their in-house R&D team, comprising 21 employees as of March 31, 2024, develops the solutions.
- Market leadership in ZLD technology in India, well placed to harness global industry opportunities
- Integrated solutions provider supported by backward integrated manufacturing facilities
- Established presence in international markets
- Diversified customer base across multiple industries and geographies
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Synopsis –
Concord Enviro Systems Limited IPO (Concord Enviro IPO) is set to be open for subscription from 19th Dec 2024 to 23rd Dec 2024, offering combination of fresh issue of 0.25 crore shares aggregating to Rs 175.00 crores and offer for sale of 0.46 crore shares aggregating to Rs 325.33 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Friday, December 27, 2024.
The total issue size of this IPO amounts to Rs. 500.33 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 19th Dec 2024 |
| Closing Date | 23rd Dec 2024 |
| Lot Size | 21 Shares |
| Face Value | Rs 5 |
| IPO Size | Rs. 500.33 Cr |
| Fresh Issue | Rs. 175.00 Cr |
| IPO Price Range | Rs. 665 – 701 |
| Min. Investment | Rs. 14,721 |
| Offer for Sale (OFS) | Rs. 325.33 Cr |
| Employee Discount | — |
| Basis of Allotment | 24th Dec 2024 |
| Refunds | 26th Dec 2024 |
| Listing Date | 27th Dec 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Market Lot –
Concord Enviro Systems Limited IPO (Concord Enviro IPO) minimum market lot is 21 shares with ₹14,721 application amount. The retail investors can apply up to 13 lots with 273 shares or ₹1,91,373amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 21 | ₹14,721 |
| Retail Maximum | 13 | 273 | ₹1,91,373 |
| S-HNI Minimum | 14 | 294 | ₹2,06,094 |
| S-HNI Maximum | 67 | 1,407 | ₹9,86,307 |
| B-HNI Minimum | 68 | 2,428 | ₹10,01,028 |
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Book Running Lead Managers –
- Motilal Oswal Investment Advisors Limited
- Equirus Capital Private Limited
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Promoters –
Prayas Goel
Prerak Goel.
Pre-Issue Promoter Shareholding | 45.56% |
Post-Issue Promoter Shareholding | – |
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Registrar to the offer –
The registrar for the Concord Enviro Systems Limited IPO (Concord Enviro IPO) is Link Intime India Pvt Ltd. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- Investment in the wholly owned Subsidiary, Concord Enviro FZE (“CEF”) for financing its capital expenditure requirements for the greenfield project to develop an assembly unit to assemble systems and plants for the treatment of water, wastewater and related membrane modules (the “U.A.E Project”);
- Investment in our wholly owned Subsidiary, Rochem Separation Systems (India) Private Limited (“RSSPL”), for financing its capital expenditure requirements for the brownfield project to expand the manufacturing facilities, storage and supporting activities (the “Vasai Project”);
- Funding capital expenditure requirements of the Company for the purchase of plant and machinery;
- Investment in our wholly owned Subsidiary, Concord Enviro FZE, for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by Concord Enviro FZE;
- Investment in the wholly owned Subsidiary, Concord Enviro FZE, for funding working capital requirements of Concord Enviro FZE;
- Investment in the joint venture, Reserve Enviro Private Limited, to grow our pay-per-use/pay-as-you-treat business;
- Investment in technology and other growth initiatives to access new markets; and
- General corporate purposes. (collectively, referred to herein as “Objects”)
Key Performance Indicator –
The market capitalization of Concord Enviro Systems Limited IPO is Rs 1,450.81 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | 13.73% |
| ROCE: | 14.07% |
| EBITDA Margin: | 16.33% |
| PAT Margin: | 8.34% |
| Debt to equity ratio: | 0.47 |
| Earning Per Share (EPS): | ₹22.77 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 12.92% |
| Net Asset Value (NAV): | ₹177.23 |
Financial Status –
Concord Enviro Systems Limited’s revenue increased by 46% and profit after tax (PAT) rose by 655% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 30 June 2024.
The company’s total assets are Rs. 640.09 crore.
The company’s total revenue is Rs. 208.02 crore.
The company’s PAT is Rs. 0.52 crore.
The company’s net worth is Rs. 319.71 crore
| Period Ended | 30 June 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Total Assets | 640.09 | 627.68 | 592.22 | 536.9 | ||||||||||||||||||||||||||||||||||||
| Revenue from operations | 208.02 | 512.27 | 350.5 | 337.57 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 0.52 | 41.44 | 5.49 | 16.58 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 319.71 | 320.82 | 279.23 | 266.81 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 300.59 | 303.09 | 258.64 | 261.12 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | 167.53 | 153.19 | 131.06 | 125.76 | ||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Evaluation of P/E Ratio :
Considering the FY ended 31 Mar 2024 with an EPS of Rs.22.77 from the last year, the resulting P/E ratio is 30.78x.
Considering the weighted EPS of Rs.13.90 for the last three years, the P/E ratio is 50.43x.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 49.82x.
In simple words, the P/E ratio of this IPO (30.78x), compared with the industry’s average P/E of 49.82x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Concord Enviro Systems Limited IPO (Concord Enviro IPO) –
Concord Enviro Systems Limited peer comparison with similar listed entities. (As on March 28, 2024)
| Company Name | EPS | NAV | P/E Ratio | RoNW% | P/BV Ratio | Income | Financial statements |
|---|---|---|---|---|---|---|---|
| Concord Enviro Systems Limited | 22.77 | 177.23 | 12.92 | Consolidated | |||
| Praj Industries Ltd. | 15.42 | 69.35 | 51.39 | 22.24 | 7.71 | 3,508 Cr. | Consolidated |
| Ion Exchange (india) Ltd. | 16.53 | 86.15 | 43.28 | 19.24 | 5.9 | 2,392 Cr. | Consolidated |
| Triveni Engineering & Industries Ltd. | 18.05 | 132.51 | 24.86 | 13.8 | 2.35 | 5,220 Cr. | Consolidated |
| Va Tech Wabag Ltd. | 39.49 | 235.96 | 48.28 | 15.04 | 3.24 | 2,856 Cr. | Consolidated |
| Thermax Ltd. | 57.28 | 314.96 | 81.3 | 14.8 | 13.35 | 9,323 Cr. | Consolidated |
Dividend Policy –
The company has not declared dividends in the last three FYs.
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Strengths –
India leads the ZLD technology market and is ideally positioned to take advantage of opportunities in the worldwide sector.
Backward integrated manufacturing facilities support the integrated solutions supplier.
A well-established presence in global marketplaces.
Broad consumer base spanning several sectors and regions.
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Weakness –
Economic Sensitivity: Prospective impacts of industrial slowdowns on wastewater solution demand.
Regulatory Risks: The complexity involved in compliance is intensifying due to operations across geographies.
Rivaling Forces: Wastewater treatment is fast emerging as a sector of competition where new entrants are battling for audience share.
Concord Enviro Systems Limited IPO (Concord Enviro IPO) Status –
Concord Enviro Systems Limited IPO (Concord Enviro IPO) allotment status will be available on the Link Intime India Pvt Ltd website. Click on this link to get allotment status.
Disclaimer –
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing. Subscribe only after considering fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
