Effwa Infra and Research IPO

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05th – 09th Jul 2024
12 Jul 2024
₹78 – ₹82
1600 shares (₹131200)
51cr

Schedule

Issue open date 05 Jul 2024
Issue close date 09 Jul 2024
UPI mandate deadline 09 Jul 2024 (5 PM)
Allotment finalization 10 Jul 2024
Refund initiation 11 Jul 2024
Share credit 11 Jul 2024
Listing date 12 Jul 2024
Mandate end date 24 Jul 2024
Lock-in end date for anchor investors (50%) 11 Aug 2024
Lock-in end date for anchor investors (remaining) 11 Oct 2024

About

Incorporated in 2014, Effwa Infra and Research is engaged in the business of engineering, consultancy, procurement, construction, and integrated project management services in water pollution control, encompassing sewage and industrial effluent treatment, solid waste treatment and disposal, ventilation systems, hazardous waste management, and water treatment plants. The company also functions as a consultant and advisor, providing a range of services encompassing project organization, management, equipment procurement, funding, and project execution. Its expertise spans the entire project lifecycle, from registration and design to implementation, supervision, and finalizing contract terms.

The company operates across the eight States including a SEZ. These regions include Andhra Pradesh, Chhattisgarh, Gujarat, Maharashtra, Odisha, West Bengal, Madhya Pradesh, and Rajasthan, and the Special Economic Zone includes Adani Port as well as international markets. As of March 31, 2024, It has successfully completed over 45 water management infrastructure projects for PSUs, municipal corporations, state governments, and private companies.


Financials



Issue size

Funds raised in the IPO Amount
Overall ₹51.27 crores
Fresh issue ₹43.60 crores
Offer for sale ₹7.68 crores

Proceeds from the issue

  • Working capital and general corporate purposes: The company intends to utilize ₹33 crores to fund the working capital requirements of the company and the balance amount for general corporate purposes.
  • Capital expenditure: The company intends to utilize ₹41 lakhs towards the purchase of office equipment.

*All figures except EPS are in ₹ crores

Risks

  • Dependence on top 10 clients: The company relies on a select group of clients for over 95% of its revenue. The potential loss of one or more of these clients could significantly impact the company’s business, financial health, and operational results.
  • Lack of control over third-party contractors and service providers: The company relies on a range of third parties, such as contractors and independent service providers, over whom it may lack direct control regarding the timing or quality of services, equipment, or supplies provided. Moreover, with the recent surge in industrial development in India, there has been a heightened demand for contractors possessing specialized design, engineering, and project management skills, leading to a scarcity of such contractors and escalating costs.
  • Changes in Government policies: Government expenditures on water reuse and Zero Liquid Discharge (ZLD) solutions are significantly impacted by environmental protection policies, legislation, and regulations. These policies are subject to alterations stemming from evolving political, social, and legislative landscapes concerning the environment, water supplies, and water treatment and discharge. Such changes may alter the demand for the company’s services and potentially have a substantial adverse effect on its business, financial health, and operational outcomes.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by July 11, 2024, on the registrar’s website and the NSE website.