Concord Enviro Systems Limited is coming up with an IPO consisting of a fresh issue of 0.25 crore shares worth INR 175 crores and an offer to sell 0.46 crore existing shares worth INR 325.33 crores. The company aims to invest in subsidiaries, expand projects, acquire machinery, reduce debt, enhance technology, and fund growth initiatives. 

Concord Enviro Systems IPO – Important Dates 

Read more about Concord Enviro Systems Limited IPO GMP

Concord Enviro Systems Limited IPO – Company Profile 

Concord Enviro Systems Limited provides water and wastewater treatment solutions, including ZLD technology, system manufacturing, O&M services, and consumables. Revenue streams include systems, plant sales, O&M services, and spare part supplies. 

They specialise in integrated wastewater treatment and ZLD solutions, delivering custom-designed systems, turnkey projects, IoT-enabled monitoring, O&M services, and exports to global markets. As of 2024, they served 310 customers across diverse industries. 

They operate manufacturing facilities in India and UAE, focus on R&D for cost-efficient ZLD solutions, hold four patents, and provide water treatment systems, turnkey solutions, O&M services, and consumables to global industries. 

Concord Enviro Systems-IPO Fundamental Analysis 

Concord Enviro Systems Limited’s financial analysis reveals a mixed performance. Revenue has grown steadily, but declining profitability, EPS, RoNW, and liquidity ratios highlight financial challenges, alongside increased debt reliance and reduced inventory turnover, despite business growth opportunities. 

• Revenue Trend: The revenue increased from ₹3,293.66 millions in March 2022 to ₹3,432.19 millions in March 2023. The revenue for the current year’s 5-month period ending August 2024 is INR 2,061.71 million. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly decreased from ₹164.77 million in March 2022 to ₹5.16 million by August 2024. This decline in profitability could be a source of concern among investors. 
• Earnings per Share (EPS): The diluted EPS has reduced from ₹9.05 in March 2022 to ₹0.28 by August 2024, reflecting lower earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has decreased from 6.18% to 0.16%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

Check out the other upcoming IPOs this month:

Concord Enviro Systems IPO Financial Analysis 

Concord Enviro Systems Limited IPO Peer Comparison 

Concord Enviro Systems Limited operates alongside peers like Praj Industries, Ion Exchange, and Thermax, showcasing varied industry rankings in profitability, market position, and operational efficiency across water treatment, energy, and engineering solutions. 

Concord Enviro Systems-IPO Objective 

Concord Enviro Systems Limited’s main objectives are to invest in subsidiaries, expand facilities, fund capital expenditures, reduce debt, support working capital, grow joint ventures, and drive technology initiatives for market expansion. 

1. Investment in their wholly owned Subsidiary, CEF, for financing its capital expenditure requirements for the greenfield project to develop an assembly unit to assemble systems and plants for the treatment of water, wastewater and related membrane modules: The Company intends to utilise INR 25 crores for the establishment of an assembly unit in Sharjah, UAE to expand production capacity for membrane modules, waste heat evaporator modules, and containerised plants. 

2. Investment in their wholly owned Subsidiary, Rochem Separation Systems (India) Private Limited (“RSSPL”), for financing its capital expenditure requirements for the brownfield project to expand the manufacturing facilities, storage and supporting activities: The Company plans to utilise INR 10.51 crores for the Vasai Project, covering building construction, MEP works, electrical installations, and infrastructure development, aimed at enhancing manufacturing facilities and improving production efficiency. 

3. Funding capital expenditure requirements of the company for the purchase of plant and machinery: The Company aims to utilise INR 3.21 crores to purchase plant and machinery for its Vasai Project, including CNC machines, cranes, forklifts, generators, welding machines, and pumps, to enhance manufacturing and testing capabilities. 

4. Investment in their wholly owned Subsidiary, CEF, for prepayment or repayment, in whole or in part, of all or a portion of certain outstanding borrowings availed by CEF: The Company will utilise INR 50 crores from the Net Proceeds for investment in its wholly owned Subsidiary, CEF, for prepayment or repayment of outstanding borrowings, reducing debt and improving its debt-to-equity ratio. 

5. Investment in their wholly owned Subsidiary, Concord Enviro FZE, for funding working capital requirements of Concord Enviro FZE: The company will utilise INR 20 crores from the net proceeds to meet the working capital requirements of its wholly owned subsidiary, Concord Enviro FZE, during the fiscal years 2025, 2026, and 2027. 

6. Investment in their joint venture, Roserve Enviro Private Limited, to grow their pay-per-use/pay-as-you-treat business: The company will utilise INR 10 crores from the net proceeds to subscribe to 100,000 equity shares of Roserve Enviro Private Limited, supporting its “pay-per-use/pay-as-you-treat” wastewater reuse business model. 

7. Investment in technology and other growth initiatives for access to new markets: The company will utilise INR 23.5 crores from the Net Proceeds to invest in technology, innovation, technology co-development, product commercialisation, and other organic growth initiatives, including IoT, AI, and membrane technologies. 

8. General corporate purposes:  The company will deploy funds for general corporate purposes, including funding strategic initiatives, growth opportunities, marketing capabilities, working capital requirements, expenses, and commissions, as well as other business-related purposes. 

Concord Enviro Systems IPO Risks And Challenges 

Concord Enviro Systems Limited’s risks include equipment malfunctions, industrial accidents, environmental hazards, low capacity utilisation at its Vasai and Sharjah facilities, and heavy reliance on a few private and government customers, which can lead to revenue fluctuations. 

• The Company’s manufacturing operations face risks such as equipment malfunctions, industrial accidents, and environmental hazards, which could disrupt operations, incur significant costs, and lead to liabilities, adversely affecting the business, financial condition, and reputation. 

• The Company has experienced low capacity utilisation at its Vasai and Sharjah facilities, leading to higher production costs. Despite planned expansions, no assurance that increased capacity will result in higher revenue or profits. 

• The Company relies heavily on a few private and government customers, with significant revenue concentration. This dependency may lead to fluctuations in revenue, delays in orders or payments, and risks related to government contracts and regulatory requirements. 

Concord Enviro Systems-IPO – Industry & Market Potential 

The global water and wastewater treatment market, valued at US$313.0B in CY23, is growing at a CAGR of 8.1%. Driven by regulations, private investments, and sustainability policies, it is expected to reach US$452.9B by CY28. 

India’s water and wastewater management market, valued at US$7.3B in FY24, is expected to reach US$12.8B by FY29, driven by water scarcity concerns, regulatory pressure, and the need for efficient wastewater treatment solutions. 

The global wastewater recycling and reuse market is growing at a 10.1% CAGR, reaching US$48.6B by 2028. In India, the market is valued at US$235.5M, driven by innovations, regulations, and investments in sustainable water management. 

Concord Enviro Systems Limited IPO – Type of Offer 

Concord Enviro Systems Limited plans a fresh issue of 0.25 crore shares, seeking INR 175 crores to invest in subsidiaries, expand projects, acquire machinery, reduce debt, enhance technology, and fund growth initiatives. Additionally, the company proposes an offer to sell 0.46 crore existing shares worth INR 325.33 crores. 

1. Fresh Issue: The company will issue 0.25 crore new shares to raise capital, aiming to collect INR 175 crores. The company intends to utilise the proceeds from the fresh issue to invest in subsidiaries, expand projects, acquire machinery, reduce debt, enhance technology, and fund growth initiatives.
2. Offer for sale: Concord Enviro Systems Limited is offering to sell 0.46 crore existing shares worth INR 325.33 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:

Concord Enviro Systems IPO Offer Size 

The offer size of Concord Enviro Systems Limited is INR 500.33 crores, consisting of a fresh issue of 0.25 crore shares worth INR 175 crores and an offer to sell 0.46 crore existing shares worth INR 325.33 crores. The company aims to invest in subsidiaries, expand projects, acquire machinery, reduce debt, enhance technology, and fund growth initiatives. 

Concord Enviro Systems Limited IPO Allotment Structure 

Concord Enviro Systems Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for Concord Enviro Systems IPO?

To apply for the Concord Enviro Systems Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Concord Enviro Systems Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Concord Enviro Systems Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Concord Enviro Systems IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Concord Enviro Systems Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Concord Enviro Systems Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, please reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Concord Enviro Systems Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Concord Enviro Systems Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Concord Enviro Systems Ltd IPO Offer Registrar

The registrar for the Concord Enviro Systems Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited 

C-101, 1st Floor, 247 Park, L.B.S. 

Marg, Vikhroli (West), 

Mumbai 400 083, 

Maharashtra, India

Telephone: +91 22 4918 6000 

E-mail: [email protected] 

Website: www.linkintime.co.in 

Concord Enviro Systems IPO – FAQs