Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Detail Review –
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) is set to open for subscription from 22nd Jan 2025 to 24th Jan 2025. In this article we will analyze the financials , strengths and weaknesses of the Denta Water and Infra Solutions Limited IPO (Denta Water IPO). Keep scrolling below to read more!
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Overview –
Established in 2016, Denta Water and Infra Solutions Limited is a growing water and infrastructure solutions company engaged in designing, installing, and commissioning water management infrastructure projects with expertise in groundwater recharge projects.
The company has experience in water engineering and EPC services, the company specializes in infrastructure projects, including groundwater recharging through recycled water, addressing growing water solution demands.
The company has successfully executed major projects like Byrapura, Hiremagaluru LIS, and KC Valley, contributing to Bengaluru’s wastewater management and supporting the Government’s Jal Jeevan Mission.
The company owns 98 acres of land in Madikeri, Karnataka, producing coffee, pepper, and cardamom. Additionally, it has a beach resort in Udupi, generating revenue through a facility management agreement.
Services: The company provides a comprehensive range of water management services like
- Preliminary investigations and reconnaissance
- Feasibility studies
- Planning and project formulation
- Field surveys and soil testing
- Design services
- Tender bidding consultancy
- Project management and construction supervision
- Operation and maintenance guidelines
- Engineering procurement consultancy
- Turnkey projects
As of November 30, 2024, the company has executed 32 water management projects 11 as the main contractor, 1 in a joint venture, and 20 as a sub-contractor. In addition, the company undertakes construction projects on railways and highways.
As of November 30, 2024, the company had 89 permanent employees.
Competitive Strengths:
- Established expertise in water management projects with special focus on groundwater recharging
- In-house expertise in designing and engineering of water management infrastructure projects
- Strong Management Team
- Strong order book
- Established track record for timely execution
- Efficient Business Model
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Synopsis –
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) is set to be open for subscription from 22nd Jan 2025 to 24th Jan 2025, offering fresh issue of 0.75 crore shares aggregating to Rs 220.50 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Wednesday, January 29, 2025.
The total issue size of this IPO amounts to Rs. 220.50 Crores. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 22nd Jan 2025 |
| Closing Date | 24th Jan 2025 |
| Lot Size | 50 Shares |
| Face Value | Rs 10 |
| IPO Size | Rs. 220.50 Cr |
| Fresh Issue | Rs. 220.50 Cr |
| IPO Price Range | Rs. 279 – 294 |
| Min. Investment | Rs. 14,700 |
| Offer for Sale (OFS) | — |
| Employee Discount | — |
| Basis of Allotment | 27th Jan 2025 |
| Refunds | 28th Jan 2025 |
| Listing Date | 29th Jan 2025 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Market Lot –
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) minimum market lot is 50 shares with ₹14,700 application amount. The retail investors can apply up to 13 lots with 650 shares or ₹1,91,100 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 50 | ₹14,700 |
| Retail Maximum | 13 | 650 | ₹1,91,100 |
| S-HNI Minimum | 14 | 700 | ₹2,05,800 |
| S-HNI Maximum | 68 | 3,400 | ₹9,99,600 |
| B-HNI Minimum | 69 | 3,450 | ₹10,14,300 |
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Book Running Lead Managers –
- Smc Capitals Limited
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Promoters –
Sowbhagyamma
Sujith TR
C Mruthyunjaya Swamy
Hema HM.
Pre-Issue Promoter Shareholding | 100% |
Post-Issue Promoter Shareholding | — |
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Registrar to the offer –
The registrar for the Denta Water and Infra Solutions Limited IPO (Denta Water IPO) is Integrated Registry Management Services Private Limited. 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:
- To meet working capital requirements of the Company
- General corporate purposes, subject to the applicable laws
Key Performance Indicator –
The market capitalization of Denta Water and Infra Solutions Limited is Rs 784.98 Cr.
KPI as of March 31, 2023.
| KPI | Values |
| ROE: | 36.36% |
| ROCE: | 76.99% |
| EBITDA Margin: | 33.17% |
| PAT Margin: | 25.03 |
| Debt to equity ratio: | 0.01 |
| Earning Per Share (EPS): | ₹31.11 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 36.36% |
| Net Asset Value (NAV): | ₹85.55 |
Financial Status –
The company reported revenue of ₹241.84 crores in 2024 against ₹175.75 crore in 2023. The company reported profit of ₹59.73 crores in 2024 against Profit of ₹50.11 crores in 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 30 Sep 2024.
The company’s total assets are Rs. 220.35 crore.
The company’s total revenue is Rs. 98.51 crore.
The company’s PAT is Rs. 24.2 crore.
The company’s net worth is Rs. 188.46 crore
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Total Assets | 220.35 | 219.85 | 123.28 | 60.64 | ||||||||||||||||||||||||||||||||||||
| Revenue from operations | 98.51 | 241.84 | 175.75 | 119.64 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 24.2 | 59.73 | 50.11 | 38.34 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 188.46 | 164.26 | 104.55 | 54.43 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 169.26 | 145.06 | 99.74 | 49.63 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | 0.71 | 0.86 | 1.15 | |||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Evaluation of P/E Ratio :
Considering the FY ended 31 Mar 2024 with an EPS of Rs.31.11 from the last year, the resulting P/E ratio is 9.45x.
Considering the weighted EPS of Rs.27.58 for the last three years, the P/E ratio is 10.66x.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 32.94x.
In simple words, the P/E ratio of this IPO (9.45x), compared with the industry’s average P/E of 32.94x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Denta Water and Infra Solutions Limited IPO (Denta Water IPO) –
Denta Water and Infra Solutions Limited peer comparison with similar listed entities.
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| VA Tech Wabag Limited | 39.49 | 38.41 | 13.77% | 292.43 | 2,856.4 Cr. |
| EMS Limited | 29.38 | 27.47 | 19.13% | 143.73 | 538.16 Cr. |
Dividend Policy –
The company has not paid a dividend in the last three FYs.
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Strengths –
Familiarity and experience in groundwater recharge projects.
In-house engineering and design skills that are appropriate for water management infrastructure projects.
Very strong management team.
Good order book.
Well-timed execution.
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Weakness –
Delays in Project Completion: The company is witnessing slippages in 10 out of 17 ongoing projects, which could lead to increased costs, penalties, as well as negative effects on cash flow and reputation.
Dependence on Government Clients: A significant share of revenue is earned from government contracts, with 83.98% of revenue for the six months ending September 2024 being derived from the Government of Karnataka. Any adverse changes in these contracts or policies could pose a large negative impact on the Company.
Risk in Lawsuits And Legal Hurdles: The legal issues of the promoters, including charges of malfeasance, once opened, are always threatening the company with risks and extending their investigation, while putting the company’s reputation and functioning at stake.
Reliance on External Contractors: Dependence on third-party contractors for project execution is fraught with risks concerning delays in work completion, quality issues, and financial instability of contractors that may affect the timeliness and financial stability of projects.
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) Status –
Denta Water and Infra Solutions Limited IPO (Denta Water IPO) allotment status will be available on the Integrated Registry Management Services Private Limited 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.
