Denta Water, a company specialising in the water treatment sector, has opened its IPO with a total size of Rs 220.50 crore today , January 22. As of the first day of bidding, the IPO made waves in the grey market, garnering the attention of many investors and analysts.
Let’s take a look at the latest GMP, risk factors, subscription status and other key details of this mainboard issue.
Denta Water IPO: GMP trends
In the grey market, shares of Denta Water are making a significant buzz. Shares of Denta Water are currently trading at a premium of Rs 165, indicating a listing price that could be as high as Rs 459. As per the latest trend, this suggests a 56.12% upside from the top end of the IPO’s price band of Rs 294 per share.
However, it is crucial to note that this is not the actual or official listing price and may fluctuate based on the market sentiment.
Denta Water IPO: Key risks factors
As per the DRHP filing, the company noted some of the risk factors in the disclosure which includes-
Denta Water’s current order book, which accounts for future revenue projections, may not translate fully into actual income. There is a possibility that some orders could be delayed, modified, or cancelled, which would negatively impact the company’s financials.
“69.68% of our Order Book as of October 31, 2023, is contributed by government clients, and we rely substantially on our government clients for our revenues,” added the company in the filing.
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Additionally, the company’s operations are limited to Karnataka, making it vulnerable to localised risks, including social unrest or natural calamities, which could significantly disrupt business and operations.
Furthermore, the company in the DRHP said, “Delays in completion of our current and future projects and time overrun could have adverse effects on our business prospects and results of operations.”
Denta Water IPO: Subscription numbers
On the first day of bidding, so far, the IPO has been subscribed 7.32 times, with retail investors bidding 8.39 times. The Non-Institutional Investor (NII) category saw a subscription rate of 12.51 times, while the Qualified Institutional Buyer (QIB) category was subscribed 1.55 times till now.
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