Enviro Infra Engineering IPO: The IPO opened on November 22. It will close on November 26. The company aims to raise Rs 650.43 crore. In the grey market, the stock of Enviro Infra Engineering was trading at Rs 200 or at a premium of 35% to the issue price of Rs 148 per equity share.
Enviro Infra Engineering IPO Subscription Status
The issue has received substantial interest from investors across all segments. The issue was booked 7.64 times as of 1325 IST on November 25 (Day 02). The NIIs booked the issue more than 19 times and the employee’s section 9.5 times. The IPO of Enviro Infra Engineering was subscribed a bit over 2 times more than the offered shares on the first day of the IPO i.e. November 22. The retail portion was booked 4.78 times while the NIIs subscribed to the issue almost 3 times. The employee section was subscribed to a total of 3.22 times as of November 22.
Enviro Infra Engineering IPO Allotment and Listing
The shares of Enviro Infra Engineering IPO will likely list on the exchanges – NSE and BSE – on November 29, as per the tentative schedule. Meanwhile, the allotment of shares will likely be finalised on November 27.
Also ReadEnviro Infra Engineers IPO opens on November 22: Here’s what we know so far
Enviro Infra Engineering IPO key risks
High attrition rate: The company has seen a high rate of employee attrition in the past years. Also, the company has delayed the payment of provident funds and employee state insurance in the past three financial years. The company said that the delay in payment was due to operational reasons. However, on a high attrition rate, the company in its RHP stated that upon completion local labour workforce doesn’t want to shift to new work sites for other opportunities they can find locally.
Infra companies need high cash flow: The company’s business is working capital intensive. If it experiences insufficient cash flow there may be an adverse effect on its operations. “A significant amount of working capital is required to finance the purchase of raw materials, equipment, mobilization of resources and other work on projects before payment is received from clients,” said the company.
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