Denta Water and Infra Solutions Limited is coming up with an IPO with a fresh issue of 75,00,000 shares worth INR 220.50 crores. The company aims to effectively meet working capital requirements and address general corporate purposes. 

Denta Water IPO – Important Dates 

Denta Water and Infra Solutions Limited IPO – Company Profile 

Denta Water and Infra Solutions Limited, established in 2016, specialises in water EPC services, contributing to significant projects like the Jal Jeevan Mission, lift irrigation systems, and water management initiatives across Karnataka and Bengaluru. 

With expertise in water management infrastructure, Denta Water and Infra Solutions specialises in groundwater recharging, along with railway and highway construction projects. The company excels in design, installation, commissioning, and maintenance using recycled water. 

Leveraging diverse experience and technical expertise, Denta Water provides end-to-end services for water management projects, including feasibility studies, design, project management, and turnkey solutions in areas like groundwater recharging, irrigation, and water supply. 

Denta Water and Infra Solutions Ltd IPO Fundamental Analysis 

Denta Water and Infra Solutions Limited’s financial analysis reveals a mixed performance. Revenue shows consistent growth, while profitability and return on net worth have decreased. Financial position indicates potential growth, but liquidity and inventory management challenges persist. 

• Revenue Trend: The revenue increased from ₹1,743.24 millions in March 2023 to ₹2,385.98 millions in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 977.80 million.
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly decreased from ₹501.12 million in March 2023 to ₹241.99 million by September 2024. This decline in profitability could be a source of concern among investors. 
• Earnings per Share (EPS): The diluted EPS has reduced from ₹26.10 in March 2023 to ₹12.60 by September 2024, reflecting lower earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has reduced from 47.93% to 12.84%, 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 increased, indicating strengthening 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. 

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Denta Water IPO Financial Analysis 

Denta Water and Infra Solutions Limited IPO Peer Comparison 

Denta Water and Infra Solutions Limited, VA Tech Wabag Limited, and EMS Limited exhibit varying revenue and profitability trends, with significant earnings, return on equity, and financial performance differences. 

Denta Water and Infra Solutions Ltd IPO Objective 

The main objective of Denta Water and Infra Solutions Limited is to meet working capital requirements. 

1. To fund the company’s working capital requirements: The company intends to utilise INR 150 crores from Net Proceeds to meet incremental working capital needs, enhance profitability, reduce finance costs, unlock internal accruals, and support growth opportunities aligned with its business plan. 

2. General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including strategic initiatives, asset monetisation, partnerships, joint ventures, acquisitions, and covering operational expenses like salaries, rent, administration, and other business needs. 

Denta Water IPO Risks And Challenges 

Denta Water and Infra Solutions Limited’s risk includes reopened legal proceedings, recurring allegations against its promoter, and reliance on Karnataka government contracts, exposing the company to regulatory, economic, and political risks that could impact operations and financial stability. 

• Though resolved, past inquiries and legal proceedings against promoter C Mruthyunjaya Swamy may be reopened, potentially impacting the company’s business, operations, and financial condition if further developments arise. 

• Untraceable complaints alleging corruption and misconduct against the company and its promoter may recur, and any developments could adversely impact the company’s reputation, business operations, financial performance, and stakeholder confidence. 

• The company’s reliance on Karnataka government contracts exposes it to regulatory, economic, and political risks, unfavourable policies, project delays, terminations, and tender-based uncertainties, potentially impacting its business, operations, financial condition, and prospects. 

Denta Water and Infra Solutions Ltd IPO – Industry & Market Potential 

India plans to invest USD 1.4 trillion in infrastructure (2019-23), with 80% directed towards transportation, electricity, water, and irrigation. The government aims for a USD 5 trillion economy by 2025, supported by the National Infrastructure Pipeline and strategic initiatives. 

Global water demand is projected to exceed supply by 40% by 2030, driven by population growth, climate change, and industrial expansion. Sustainable management and advanced treatment solutions are vital to mitigate water scarcity and pollution risks. 

India’s water and wastewater treatment market is expected to grow at a CAGR of 6.20%, reaching USD 23.85 billion by 2033. The construction market is projected to grow at a CAGR of 17.26%, reaching USD 1.42 trillion by 2027. 

Denta Water and Infra Solutions Limited IPO – Type of Offer 

Denta Water and Infra Solutions Limited is coming up with an IPO with a fresh issue of 75,00,000 shares worth INR 220.50 crores. The company aims to effectively meet working capital requirements and address general corporate purposes. 

Denta Water IPO Offer Size 

The offer size of Denta Water and Infra Solutions Limited is INR 220.50 crores, consisting of a fresh issue of 75,00,000 shares. The company aims to effectively meet working capital requirements and address general corporate purposes. 

Denta Water and Infra Solutions Limited IPO Allotment Structure 

Denta Water and Infra Solutions 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 Denta Water and Infra Solutions IPO?

To apply for the Denta Water and Infra Solutions 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 Denta Water and Infra Solutions 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 Denta Water and Infra Solutions 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 Denta Water and Infra Solutions 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 Denta Water and Infra Solutions 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 Denta Water and Infra Solutions 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, we request you to 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 Denta Water and Infra Solutions Limited IPO:

● Registrar’s Website: Visit the website of Integrated Registry Management Services Private Limited, the registrar of the Denta Water and Infra Solutions 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.

Denta Water and Infra Solutions Ltd IPO Offer Registrar

The registrar for the Denta Water and Infra Solutions Limited IPO is Integrated Registry Management Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Integrated Registry Management Services Private Limited

No 30 Ramana Residency, 4th Cross Sampige Road,

Malleswaram, Bengaluru 560 003,

Karnataka, India

Telephone: 080- 23460815/816/817/818

E-mail: [email protected]

Website: www.integratedindia.in 

Denta Water IPO – FAQs