Concord Enviro Systems, a company specializing in industrial waste-water solutions, is planning an IPO. The company has submitted preliminary papers with SEBI on August 27, 2024. The offer contains Fresh Issues and an Offer for Sale (OFS). In OFS, sales of Up to 51,94,520 Equity Shares will be sold by existing shareholders while in fresh issue it contains shares worth ₹ 192.3 crore. The face value for both is ₹5 per equity share.
Investor, promoter, and promoter group are selling their shares in OFS. Namrata Goel, Pushpa Goel, Nidhi Goel, Prerak Goel, Prayas Goel and AF Holdings are among them. Equirus Capital Private Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers while Link Intime India Private Limited is the registrar for this offering. It is the second trial for the company to go public.
The company is planning to use the proceeds for its General corporate purposes, for investment in technology and other growth initiatives, and for working capital requirements of Concord Enviro FZE which is a fully owned subsidiary of Concord Enviro Systems. Additionally, the fund will be used for the company’s capital expenditure requirements for purchasing plant and machinery and also for the “Vasai Project” of its fully owned subsidiary, Rochem Separation Systems (India) Private Limited (RSSPL).
Concord Enviro Systems Limited is a global provider of water and wastewater treatment and reuse solutions. The company focuses on energy optimization and recovery to help industries achieve water conservation and sustainability goals. The company has two manufacturing facilities, one is located in Maharashtra, India, and the other in Sharjah in the UAE. In the financial year 2024, the company served over 353 domestic and 24 international customers across various industries.
The company’s business includes manufacturing and selling water and wastewater treatment, reuse, and zero-liquid-discharge (ZLD) systems and plants, operations and maintenance, consumables and spare parts, and installation of compressed biogas plants.
In comparison to the previous year, company profits saw a 7.5-fold jump reaching ₹41.4 crore; revenue too surged by 44.8 percent to touch ₹496.8 crore. However, in FY23 profits dropped to ₹5.5 crores from ₹16.5 crores in FY22 and during this time revenues grew only at 4.2 percent to stand at ₹343.2 crores respectively.
Concord Enviro Systems IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Concord Enviro Systems Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹337.57 | ₹319.87 | ₹16.48 |
| 2023 | ₹350.50 | ₹343.30 | ₹5.49 |
| 2024 | ₹512.27 | ₹467.57 | ₹41.44 |
Concord Enviro Systems IPO Valuation – FY2024
Concord Enviro Systems IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹22.77 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 12.92% |
| Net Asset Value (NAV): | ₹177.23 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Praj Industries Limited | 15.42 | 50.42 | 22.24% | 69.35 | 35,09.78 Cr. |
| Ion Exchange (India) Limited | 16.53 | 41.80 | 19.24% | 86.15 | 23,91.73 Cr. |
| Triveni Engineering and Industries Limited | 18.05 | 24.99 | 13.80% | 132.51 | 52,20.09 Cr. |
| VA Tech Wabag Limited | 39.49 | 34.41 | 15.04% | 235.96 | 28,56.40 Cr. |
| Thermax Limited | 57.2 | 76.41 | 14.80% | 314.96 | 93,23.46 Cr. |
Objects of the Issue
- Investment in our wholly owned Subsidiary, Concord Enviro FZE (“CEF”) for financing its capital expenditure requirements for the greenfield project to develop an assembly unit to assemble systems and plants for treatment of water, waste water and related membrane modules
- Investment in our wholly owned Subsidiary, Rochem Separation Systems (India) Private Limited (“RSSPL”) for financing its capital expenditure requirements for the brown field project to expand the manufacturing facilities, storage and supporting activities
- Funding capital expenditure requirements of our Company for purchase of plant and machinery
- Investment in our wholly owned Subsidiary, CEF for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by CEF
- Investment in our wholly owned Subsidiary, CEF, for funding working capital requirements of CEF
- Investment in our joint venture, Roserve Enviro Private Limited to grow our “pay per use/pay as you treat” business
- Investment in technology and other growth initiatives for access to new markets
- General Corporate Purposes
IPO Lead Managers aka Merchant Bankers
- Motilal Oswal Investment Advisors Limited
- Equirus Capital Private Limited
