Envirotech Systems IPO: A Deep Dive into Sustainable Investment Opportunities

Introduction to Envirotech Systems IPO

In the bustling landscape of 2024’s investment market, the Envirotech Systems Limited IPO emerges as a beacon for investors eyeing sustainable and eco-friendly opportunities. Specializing in noise measurement and control solutions, Envirotech Systems isn’t just another company; it’s a step toward a quieter, more sustainable future.

IPO Overview: Dates, Price, and Size

• Opening Date: September 13, 2024
• Closing Date: September 19, 2024
• Price Band: ₹53 to ₹56 per share
• Issue Size: Aiming to raise approximately ₹30.24 crore through a fresh issue of 5,400,000 shares.

Here’s a comprehensive table summarizing the details of the Envirotech Systems Limited IPO based on the information available up to September 13, 2024:

Detail	Information
IPO Opening Date	September 13, 2024
IPO Closing Date	September 19, 2024
Price Band	₹53 to ₹56 per share
Issue Type	SME IPO
Issue Size	₹30.24 Crores
Fresh Issue	5,400,000 equity shares
Offer for Sale	None
Face Value	₹10 per equity share
Lot Size	2000 Shares (₹112,000)
Listing Date	September 24, 2024
Allotment Date	September 20, 2024
Registrar	Bigshare Services Pvt Ltd
Book Running Lead Manager	Share India Capital Services Private Limited
Market Maker	Share India Securities
Listing Platform	NSE SME
Subscription Status	Subscribed 11.89 times
GMP (Grey Market Premium)	₹0 as of the last update
Purpose of the Issue	Land and Building Acquisition, Working Capital
Financial Health	Significant growth in revenue and profit from FY22 to FY24
Investor Interest	High interest from retail and NII categories, with strong subscription numbers

This table encapsulates the key aspects of the Envirotech Systems Limited IPO, providing potential investors with a quick overview of what to expect from this SME IPO. Remember, for the most current details, especially regarding GMP or subscription status, checking real-time updates or official announcements would be advisable.

Company Background: Pioneering in Acoustic Solutions

Founded in 2007, Envirotech Systems has carved out a niche by providing acoustic solutions for industrial and commercial sectors. Their product range includes anechoic chambers, acoustic enclosures, and noise barriers, showcasing their commitment to innovation in noise control technology.

Envirotech Systems Company Details.

Envirotech Systems Peer Companies Comparison

Financial Health and Performance

• Revenue Growth: Envirotech’s revenue has grown from ₹1,849.54 lakh in FY22 to ₹4,687.95 lakh in FY24, indicating robust expansion.
• Profit After Tax: Their profit surged from ₹105.73 lakh in FY22 to ₹1,142.88 lakh in FY24.

Here’s a tabular representation of Envirotech Systems Limited’s financial performance based on the provided data:

Financial Metric	FY22 (₹ Lakhs)	FY23 (₹ Lakhs)	FY24 (₹ Lakhs)	Growth FY23 to FY24
Assets	1,386.51	2,275.73	3,867.47	70%
Revenue	1,849.54	2,874.78	4,687.95	63%
Profit After Tax	105.73	257.34	1,142.88	344%
Net Worth	404.4	661.73	1,960.62	196%
Reserves & Surplus	354.4	611.73	621.62	2%
Total Borrowing	276.61	260.67	240.5	-8%

Key Financial Ratios

• Asset Turnover Ratio (Revenue / Assets):
  • FY22: 1.33
  • FY23: 1.26
  • FY24: 1.21
• Profit Margin (PAT / Revenue):
  • FY22: 5.72%
  • FY23: 8.95%
  • FY24: 24.38%
• Debt to Equity Ratio (Total Borrowing / Net Worth):
  • FY22: 0.68
  • FY23: 0.39
  • FY24: 0.12
• Return on Assets (ROA) – (PAT / Assets):
  • FY22: 7.62%
  • FY23: 11.31%
  • FY24: 29.55%
• Return on Equity (ROE) – (PAT / Net Worth):
  • FY22: 26.14%
  • FY23: 38.89%
  • FY24: 58.29%

Analysis

• Growth in Assets: The significant increase in assets reflects investment in the business, potentially for expansion or technology upgrades.
• Revenue Growth: A 63% jump in revenue from FY23 to FY24 indicates strong market demand or successful expansion strategies.
• Profitability: The 344% increase in PAT is remarkable, suggesting not just revenue growth but also improved operational efficiency or margin expansion.
• Net Worth: The substantial growth in net worth highlights the company’s ability to retain earnings, enhancing shareholder equity.
• Reserves & Surplus: A modest increase here might indicate conservative financial management, retaining funds for future growth or contingencies.
• Debt Reduction: Lower borrowings indicate financial health improvement, reducing reliance on debt for operations or growth.

Objectives of the IPO

Envirotech Systems plans to use the IPO proceeds for the following purposes:

• Land and Building Acquisition: To set up a new factory.
• Working Capital: To support operational expansion and meet growing demand.
• General Corporate Purposes: Including covering the costs related to the IPO issue.

Market Sentiment and Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Envirotech Systems IPO, as of the latest information available up to September 17, 2024, has shown some variation:

• Initially, there was mention of a GMP expected in the range of ₹20 to ₹25 based on financial performance, indicating positive sentiment towards the IPO.
• However, more recent updates, particularly around September 17, 2024, indicate that the GMP had settled to ₹0. This suggests that the initial enthusiasm or speculative pricing in the grey market might have cooled down, or there was a stabilization in the expected listing price closer to the IPO price band.

The GMP reflects the unofficial market’s sentiment towards an IPO, often indicating how much above the issue price the shares might list. A GMP of ₹0 could imply several things:

• Market Realism: Investors might be taking a more realistic view of the company’s valuation post-IPO, aligning expectations closer to the offered price band.
• Lack of Speculative Interest: There might not be significant speculative buying interest, or the market might be cautious due to various factors like overall market conditions, company fundamentals, or broader economic indicators.
• Regulatory or Market Dynamics: Sometimes, changes in market regulations or shifts in investor behavior can lead to a decrease in grey market activities.

Given this information, if you’re considering the Envirotech Systems IPO:

• Investment Decision: A GMP of ₹0 might suggest a more conservative approach to pricing, potentially reducing the immediate listing gains but could also imply a more stable long-term investment if the fundamentals are strong.
• Market Sentiment: It’s worth watching for any last-minute changes in GMP or other market indicators closer to the listing date, as sentiment can shift rapidly.

Remember, GMP is not an official or guaranteed price but rather a speculative indicator. Always consider your investment strategy, the company’s fundamentals, and broader market conditions before making investment decisions.

Envirotech Systems IPO Subscription Status

Based on the information available up to September 17, 2024, the Envirotech Systems IPO has shown a robust subscription status:

• Day 1 Subscription: The IPO was subscribed 2.3 times on its first day, with the retail portion seeing even higher demand, being subscribed 3.5 times over.
• Day 2 Subscription: By the second day, the subscription rate had increased significantly, reaching 6.79 times the offered shares, indicating strong investor interest.
• Day 3 Subscription: The IPO concluded its subscription period with an impressive 11.89 times subscription rate, showcasing substantial investor demand.

This level of subscription indicates a very positive reception from the market, with both retail and non-institutional investors showing keen interest. The high subscription rate could suggest expectations of a good listing performance, although it’s also influenced by the overall market sentiment, the company’s fundamentals, and broader economic conditions at the time of listing.

For the most current status or detailed breakdowns by investor categories (like QIB, NII, and Retail), one would typically refer to the latest updates from stock exchanges or financial news platforms closer to or on the listing date. However, as of the last update, Envirotech Systems IPO has clearly captured significant investor attention.

Investment Analysis

• Strengths: Early market entry, strong R&D focus, experienced management, and a solid client base position Envirotech for success.
• Risks: Legal proceedings, lease renewals, and property acquisition could pose potential risks.
• Market Position: A leader in acoustic solutions with growth potential in sustainability-focused sectors.

How to Invest in Envirotech Systems IPO

• Lot Size: Investors can apply for a minimum lot of 2,000 shares, amounting to ₹112,000 at the upper price band.
• Allotment and Listing: The allotment is expected to be announced on September 20, 2024, with the shares listing on September 24, 2024.

Investor Sentiment from X

Investors on X have shared varied opinions, ranging from suggestions to apply for listing gains to holding shares for long-term growth. This reflects the diverse strategies investors are adopting for this IPO.

Conclusion: Why Envirotech Systems Could Be Your Next Investment

The Envirotech Systems IPO offers more than just an investment opportunity—it’s a chance to be part of a sustainable future. With a strong focus on green technology, a proven track record, and robust financials, this IPO is ideal for those interested in green investment opportunities in 2024.

Additional Sections for Engagement

• FAQs: Address common investor questions, such as “What is GMP?” or “How do I check the allotment status?”
• Comparison: Briefly compare the Envirotech Systems IPO with recent ones like Deccan Transcon to provide perspective.
• Future Outlook: Speculate on the growth of the acoustic solutions sector and how Envirotech Systems is positioned within it.

Call to Action

Are you ready to make an impact through sustainable investment? Share your strategies or questions in the comments below, and join the conversation on sustainable investments and market trends in 2024.

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