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Denta Water Share Price Live: Denta Water and Infra lists at 12% premium over issue price; shares jump 5% post listing. Check other details
29 Jan 2025 | 12:00:46 PM IST
Denta Water and Infra Solutions shares debut with a 12% premium
Synopsis
Denta Water and Infra Solutions Share Price Live | IPO Listing Live: The shares of Denta Water and Infra Solutions shares debut with a 12% premium on the stock exchanges on Wednesday, January 29. Before the listing, the grey market premium for the company's shares was ₹76.
Denta Water Share Price Live Updates: Denta Water and Infra Solutions shares debut with a 12% premium following a highly subscribed IPO. The company, which focuses on water management and infrastructure projects, has made significant contributions to Bengaluru’s wastewater management. Proceeds from the IPO will be used for working capital and corporate purposes. While analysts predict growth potential, risks such as reliance on government revenue and potential project delays remain concerns. Ahead of the listing, the grey market premium for the company's shares is ₹76.
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Denta Water and Infra Share Price Live: Stoick price gains 5% post-listing
SHares of the company gained 5% to Rs 346
Denta Water and Infra Share Price Live: Valuations
Denta Water Share Price Live Updates: Listed companies in the water management sector typically generate a larger portion of their revenue in the second half of the fiscal year. As a result, valuations based on annualized earnings from the first half may not provide an accurate reflection of their true financial performance.
Considering the equity after the IPO and FY24 net profit, Denta is seeking a price-earnings multiple of 13. In comparison, recently listed companies in the sector, such as Enviro Infra Engineers and Concord Enviro Systems, trade at P/E ratios of 43 and 35, respectively. The valuation discount for Denta reflects its smaller business scale relative to peers and the geographic concentration of its revenue.
Considering the equity after the IPO and FY24 net profit, Denta is seeking a price-earnings multiple of 13. In comparison, recently listed companies in the sector, such as Enviro Infra Engineers and Concord Enviro Systems, trade at P/E ratios of 43 and 35, respectively. The valuation discount for Denta reflects its smaller business scale relative to peers and the geographic concentration of its revenue.
Denta Water and Infra Share Price Live: Analysts Take
Analysts say the industry forecast indicates healthy growth for the Indian Water and Wastewater treatment market which is projected to expand at a CAGR of 6.2% for the CY24E-CY30E period.
Denta Water and Infra Share Price Live: Denta Water and Infra shares jump 5% post listing
Denta Water and Infra Share Price Live: Peer Comparison
Denta Water and Infra Share Price Live: Denta Water and Infra shares list at 12% premium over issue price
After receiving one of the highest subscription responses this year, Denta Water and Infra Solutions' shares listed with a 12% premium over the issue price. The stock made its debut at Rs 330 on the BSE and Rs 325 (10.5% premium) on the NSE.
Denta Water and Infra Share Price Live: Financials
Denta Water and Infra Share Price Live: INDUSTRY OVERVIEW
The 2023 assessment of India's dynamic groundwater resources, carried out collaboratively by the Central Ground Water Board (CGWB) and State Ground Water Departments, shows that the total annual groundwater recharge is 449.08 billion cubic meters (bcm), with natural discharges totaling 41.89 bcm. This results in annual extractable groundwater resources of 407.21 bcm. The primary contributor to this recharge is rainfall, accounting for 270.78 bcm, or 60% of the total recharge. Of this, 54% occurs during the monsoon season, while 6% happens in the non-monsoon season.
Denta Water and Infra Share Price Live: IPO Details
Denta Water and Infra Share Price Live: Bidding Details
Denta Water and Infra Share Price Live: Business highlights
Founded in 2016 and based in Bengaluru, Denta specializes in developing infrastructure for groundwater recharging, lift irrigation, and supplying drinking water to various communities under the “Jal Jeevan Mission.” Its end-to-end services cover areas such as dams and reservoirs, water supply and sanitation, and urban and rural development. By the end of November 2024, Denta had successfully completed 32 projects in Karnataka.
Denta Water and Infra Share Price Live: Company's Financials
Revenue from operations nearly doubled to Rs 238.6 crore, while net profit rose to Rs 59.7 crore, up from Rs 38.3 crore between FY22 and FY24. However, the company’s profitability has been declining, with the operating margin before depreciation and amortization (EBITDA margin) shrinking to 33.3% in FY24, down from 38.4% in the previous year and 43.3% in FY22. The
Denta Water and Infra Share Price Live: GMP today
Ahead of the debut, the company's shares had a healthy GMP of 25%.
Denta Water and Infra Share Price Live: RISKS
Company’s revenue contribution from government clients has increased from 18.25% in FY 2023 to 63.40% as of FY 2024, and company currently rely substantially on its government clients for its revenues.
Denta Water and Infra Share Price Live: OBJECTS OF OFFER
Company proposes to utilize the Net Proceeds raised through the Issue for the following objects:
1. To meet working capital requirements of Company; and
2. General corporate purposes, subject to the applicable laws
1. To meet working capital requirements of Company; and
2. General corporate purposes, subject to the applicable laws
Denta Water and Infra Share Price Live: INVESTMENT RATIONALE
- In-house expertise in designing and engineering of water management infrastructure projects
- Strong Management Team
- Efficient Business Model
Denta Water and Infra Share Price Live: Strengths
- Established expertise in water management projects with special focus on ground water recharging.
- Strong order book
- Established track record for project execution
Denta Water and Infra Share Price Live: About Company
Founded in 2016, Denta Water and Infra Solutions Limited, commonly known as "Denta Water," has quickly become a prominent player in the field of water engineering, procurement, and construction (EPC) services. With a strong track record in infrastructure projects, including groundwater recharging through recycled water, Denta Water has played a key role in addressing the growing demand for water-related solutions across the country. Some of their standout projects include the Byrapura and Hiremagaluru LIS Project, Karagada LIS Project, and others, primarily focused on lift irrigation systems. A notable achievement for the company was its significant contribution to the first phase of the KC Valley project, which helped solidify Bengaluru's position as the second-largest city globally in terms of treated wastewater quantity.
Denta Water and Infra Share Price Live: VALUATION
Company is bringing the issue at price band of Rs 279-294 per share at p/e multiple of 16x on post issue annualized FY25 PAT basis.
Company is established expertise in water management projects with special focus on ground water recharging. Company has expertise in in-house designing and engineering of water management infrastructure projects. Along , with strong management team & strong order book, company has established track record for project execution & efficient business model. Hence looking after all above , we recommend “Subscribe” on issue.
Company is established expertise in water management projects with special focus on ground water recharging. Company has expertise in in-house designing and engineering of water management infrastructure projects. Along , with strong management team & strong order book, company has established track record for project execution & efficient business model. Hence looking after all above , we recommend “Subscribe” on issue.
Denta Water and Infra Share Price Live: price band
The company announced that it has raised over ₹66 crore from anchor investors. The public issue, priced between ₹279 and ₹294 per share.
Denta Water and Infra Share Price Live: IPO Proceeds
The funds raised from the IPO will be used to bolster Denta Water’s operations and expand its project portfolio. With a strong foothold in the water and infrastructure solutions market, the company is well-positioned for growth. Analysts note that the strong demand from both institutional and retail investors indicates confidence in Denta Water’s future prospects.
Denta Water and Infra Share Price Live: Lead Managers and Registrars
SMC Capitals served as the book-running lead manager for this IPO, while Integrated Registry Management Services Pvt Ltd acted as the registrar for the offering.
