Company Profile
Concord Enviro Systems Limited is a leading global provider of water and wastewater treatment solutions, specializing in advanced zero liquid discharge technology. The company offers end-to-end services, encompassing the design, manufacturing, installation, commissioning, operation, maintenance, and digitalization of systems, including IoT-enabled solutions.
Its revenue model is diversified into three key segments: the sale of systems and plants, operation and maintenance services for installed plants, and the supply of consumables and spare parts for these systems.
The company operates two manufacturing facilities, one in Vasai, Maharashtra, India, and the other in Sharjah, UAE. It serves a wide geographical market, with a presence in North America, Latin America, Africa, the Middle East, and Southeast Asia. As of August 31, 2024, Concord Enviro had secured an order book valued at Rs 502 crore, serving 310 clients globally.
Objects of the Issue
The IPO involves both a fresh issue and an offer for sale. Notably, the company will not receive any proceeds from the offer for sale. The net proceeds from the fresh issue will be allocated as follows:
- Investment in the wholly owned subsidiary, Concord Enviro FZE, to fund capital expenditure for a greenfield project aimed at setting up an assembly unit for manufacturing water, wastewater treatment systems, and related membrane modules.
- Investment in the wholly owned subsidiary, Rochem Separation Systems (India) Pvt Ltd, to support capital expenditure for expanding its manufacturing facilities, storage, and other supporting infrastructure.
- Financing capital expenditures for the purchase of plant and machinery required by the company.
- Investment in Concord Enviro FZE to prepay or repay part or all of its outstanding borrowings.
- Investment in Concord Enviro FZE to support its working capital requirements.
- Investment in the joint venture, Roserve Enviro Pvt Ltd, to further the development of the pay-per-use or pay-as-you-treat business model.
- Allocation towards investment in technology and growth initiatives aimed at expanding into new markets.
- General corporate purposes.
Promoter Holding
The promoters of the company, Prayas Goel and Prerak Goel, currently hold a combined pre-issue shareholding of 45.56% in Concord Enviro Systems Limited.
Summary of Financial Information:
| Period Ended | 31 Aug 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 640.09 | 627.68 | 592.22 | 536.9 |
| Revenue | 208.02 | 512.27 | 350.5 | 337.57 |
| Profit After Tax | 0.52 | 41.44 | 5.49 | 16.48 |
| Net Worth | 319.71 | 320.82 | 279.23 | 266.81 |
| Reserves and Surplus | 300.59 | 303.09 | 258.64 | 261.12 |
| Total Borrowing | 167.53 | 153.19 | 131.06 | 125.76 |
Comparison with Listed Peers:
| Company Name | P/E | P/B | RoE (%) |
|---|---|---|---|
| Concord Enviro Systems Ltd | 1000x | 3 | 14 |
| Praj Industries Ltd | 49 | 11 | 24 |
| Ion Exchange (India) Ltd | 48 | 9 | 21 |
| Triveni Engineering & Industries Ltd | 33 | 4 | 14 |
| VA Tech Wabag Ltd | 40 | 5 | 15 |
| Thermax Ltd | 76 | 12 | 16 |
| Enviro Infra Engineers Ltd | 58 | 6 | 51 |
Key IPO Details:
- IPO Dates: 19 to 23 December, 2024
- Price Band: Rs. 665 to Rs. 701 per share
- Lot Size: 21 shares
- Issue Size: Rs. 500.33 Crores (Fresh Issue: 175 Cr.)
- Retail Quota: 35%
- Listing Date: 27th Dec, 2024
- GMP: 5%+ (for informational purposes only)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
