Denta Water and Infra IPO sees impressive subscription and grey market premium, raising ₹220.50 crore. The company focuses on water management and infrastructure.
The Denta Water and Infra Solutions Limited IPO, launched on January 22, 2025, has garnered considerable interest as it continues to attract investors. The water and infrastructure solutions company is set to raise ₹220.50 crore through the public offering, with a price band set between ₹279 and ₹294 per equity share. The IPO will remain open for bidding until January 24, 2025.
Based in India, Denta Water and Infra specializes in water management solutions and infrastructure development, particularly focusing on water supply projects. The company has been successful in implementing water management projects, including railway and highway construction.
As of January 23, 2025, the IPO has been oversubscribed 31.95 times, with the retail portion being subscribed 31.16 times, and the non-institutional investor (NII) category seeing an impressive 71.00 times subscription. The grey market premium (GMP) for Denta Water and Infra shares has been reported at ₹166, signaling strong investor sentiment, which indicates a potential listing price of ₹460, nearly 60% higher than the upper price band of ₹294.
The company’s robust order book and strong market focus on water management, coupled with its ongoing infrastructure projects, have contributed to positive analyst reviews. StoxBox has assigned a ‘subscribe’ tag to the IPO, recommending it for medium to long-term investment based on the company’s growth potential and a price-to-earnings (PE) ratio of 9.5x for FY24 earnings. Adroit Financial Services has also recommended the IPO, citing the company’s growing project portfolio and consistent profit growth.
Denta Water and Infra’s land holdings in Madikeri, Karnataka, where the company grows crops like coffee and cardamom, further reflect its diversified business approach.
The allotment date for shares is likely to be January 25, 2025, with the official listing date on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) expected on January 29, 2025.
