Dentawater IPO – Introduction
Denta Water and Infrastructure Solutions Limited, a renowned name in the water management and infrastructure sector, plans to launch its initial public offering (IPO) from January 22, 2025 to January 24, 2025 . The total issue amount reaches 220.5 million rupees. , this IPO offers investors an opportunity to participate in a sector that addresses India’s critical water infrastructure challenges. This article provides reviews and offers Dentawater IPO Details about the stock, about the company, why to invest, whether to buy or not, risk factors, and the final conclusion on whether it is good or bad for investment.
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About the company
Denta Water and Infra Solutions Limited was founded in 2016 and specializes in the design, installation and management of water infrastructure projects. The company focuses on groundwater recharge and other water management initiatives, contributing significantly to environmental sustainability. With 32 successful projects including projects in KC Valley and Byrapura, Denta Water has established itself as a reliable partner in infrastructure development. The company also generates diversified income from its 98 acres of coffee plantations and beach resorts in Karnataka.
Competitiveness of Denta Water and Infras Solutions Ltd
- Expertise in groundwater recharge and water infrastructure.
- Proven track record of timely project execution.
- Diversification of revenue sources from agriculture and hospitality ventures.
Denta Water IPO – Stock Details
- IPO date: January 22, 2025 – January 24, 2025
- Issue size: ₹220.5 billion yen
- Price range: ₹279 to ₹294 per share
- Lot size: 50 shares
- Total share: 7,500,000 copies (completely new edition)
- list: BSE and NSE
- Minimum investment amount: ₹14,700 (Retail Category, 50 shares)
- Lead manager: SMC Capitals Co., Ltd.
company finances
Below are the key financial indicators. The amount is in rupees.
|
detail |
September 30, 2024 (H1) | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Revenue (₹Cr) | 98.51 | 241.84 | 175.75 | 119.64 |
| PAT (₹Cr) | 24.2 | 59.73 | 50.11 | 38.34 |
| Net worth (₹Cr) | 188.46 | 164.26 | 104.55 | 54.43 |
| debt/equity | 0.01 | 0.01 | 0.01 | – |
The company has shown strong growth in sales and earnings at a compound annual growth rate (CAGR) of over 25% over the past three years. A low debt-equity ratio is a positive indicator of financial stability.
Target of IPO
The Denta Water Infra IPO is a brand new issue with a size of Rs 220.50 crore and the company plans to utilize the proceeds as follows:
- To meet working capital requirements.
- General corporate purposes.
Denta Water IPO – PER and Peer Comparison
- Based on FY24 EPS of Rs 31.11 and Rs 294, which is higher than the IPO price band, the P/E ratio is 9.45x (pre-IPO)
- Annualized EPS for 1H FY25 yields a P/E ratio of 11x (pre-IPO).
- After the IPO, the PER for FY 2024 will be 16.2 times.
- Competitors such as VA Tech Waba have a P/E ratio of 384x (highest), while EMS Ltd has a P/E ratio of 27.4x (lowest), while the industry average P/E ratio is 32.9x. Therefore, Dentawater’s IPO price is attractively priced.
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Dentawater IPO – Why invest?
- Growth potential: India’s water infrastructure sector is poised for exponential growth due to increasing urbanization and government initiatives like the Jal Jeevan Mission.
- Strong financials: Consistent revenue growth, strong profit margins, and low debt-to-equity ratios.
- Popular projects: Executing breakthrough projects demonstrates technical and managerial expertise.
- Focus on sustainability: Our commitment to groundwater recharge and recycled water use is consistent with global environmental trends.
Risk factors for this IPO
- Reliance on government contracts: Most of the revenue comes from government projects, which may face delays or cancellations.
- Geographical concentration: The company’s operations are focused on Karnataka.
- New market risks: Since this is the company’s first public offering, price fluctuations are expected after listing.
- Other risk factors: IPO investors should consider all risk factors listed below. Dentawater IPO RHP (prospectus)
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Denta Water IPO Gray Market Price (GMP)
As of January 17, 2025, the GMP of Denta Water’s IPO was ₹28 per share, indicating a premium over the higher price range of ₹294. So Dentawater’s expected IPO listing price could be around Rs 332 considering GMP only. This reflects moderate market interest.
Denta Water and Infra Solutions IPO dates
| IPO opening date | Wednesday, January 22, 2025 |
| IPO completion date | Friday, January 24, 2025 |
| Basis for allocation | Monday, January 27, 2025 |
| Initiate refund | Tuesday, January 28, 2025 |
| Credit of shares to Demat. | Tuesday, January 28, 2025 |
| Listing date | Wednesday, January 29, 2025 |
| Deadline time for UPI obligation confirmation | January 24, 2025 5:00 p.m. |
How to buy Dentawater IPO?
Investors can apply for Denta Water’s IPO in the following ways:
- ASBA (Applications supported by blocked amounts): Via bank online banking.
- UPI mechanism: Through supported mobile apps such as BHIM, Google Pay, and PhonePe.
Denta Water IPO – Invest or Avoid?
Denta Water and Infra Solutions’ IPOs combine strong fundamentals, growth potential and industry relevance. However, risks such as dependence on government contracts and geographic concentration must be considered.
Long-term investors seeking exposure to the water infrastructure sector may subscribe to this IPO for its growth story and focus on sustainability. Short-term investors should monitor GMP and market conditions before making decisions.
Disclaimer: The above article is for educational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions.
