Effwa Infra & Research Limited is coming up with an IPO worth INR 51.27 crores, consisting of a fresh issue of 53,16,800 shares worth INR 40.63 crores and an offer to sell 9,36,000 shares worth INR 7.68 crores. The company aims to fund working capital, purchase new office equipment, and cover general corporate purposes.
Effwa Infra and Research IPO – Important Dates
| Effwa Infra & Research IPO Date | July 5, 2024 to July 9, 2024 |
| Effwa Infra & Research IPO Listing Date | July 12, 2024 |
| Effwa Infra & Research IPO Price | INR 78-82 per share |
| Effwa Infra & Research IPO Lot Size | 1600 Shares |
| Effwa Infra & Research IPO Total Issue Size | INR 51.27 crores |
| Effwa Infra & Research IPO Basis of Allotment | July 10, 2024 |
| Effwa Infra & Research IPO Initiation of Refunds | July 11, 2024 |
| Effwa Infra & Research IPO Credit of Shares to Demat | July 11, 2024 |
| Effwa Infra & Research IPO Issue Type | Book Built Issue IPO |
| Effwa Infra & Research IPO Listing At | NSE, SME |
Effwa Infra & Research Limited IPO – Company Profile
Effwa Infra & Research Limited (EIRL) offers engineering, consultancy, procurement, and project management services in water pollution control, waste treatment, and hazardous waste management. It also provides comprehensive consultancy and advisory services throughout the project lifecycle.
EIRL delivers 4R-based solutions for numerous industries, emphasizing Zero Liquid Discharge. They offer end-to-end project lifecycle services, including feasibility reports, design, engineering, procurement, construction, and environmental engineering.
EIRL acquires projects through competitive bidding and offers services for water management projects, including design, construction, procurement, and on-site execution. It also provides post-commissioning operations and maintenance and has a dedicated AMC team for ongoing support.
Effwa Infra & Research Ltd IPO Fundamental Analysis
Effwa Infra & Research Limited’s financial analysis reveals a mixed performance. Revenue has steadily increased, equity and liabilities grew, profitability and EPS improved, RoNW decreased, and total assets and liquidity strengthened despite challenges with short-term obligations.
- Revenue Trend: The revenue increased from ₹10,436.67 lakhs in March 2022 to ₹11,509.57 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 14,515.93 lakhs.
- Equity and Liabilities: Both equity and liability 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 increased from ₹459.99 lakhs in March 2022 to ₹1,380.06 lakhs by March 2024. The increase in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹2.58 in March 2022 to ₹7.74 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 24.96% to 37.15%, 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.
Effwa Infra and Research IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 10,436.67 | 11,509.57 | 14,515.93 |
| Equity (₹ in lakhs) | 1,842.85 | 2,355.89 | 3,715.05 |
| Expenses (₹ in lakhs) | 9,856.33 | 10,839.20 | 12,670.16 |
| Profit and Loss After Tax (₹ in lakhs) | 459.99 | 513.04 | 1,380.06 |
| RoNW (%) | 24.96 | 21.78 | 37.15 |
| NAV per Equity Share (₹) | 10.34 | 13.21 | 20.84 |
| Diluted EPS only (₹) | 2.58 | 2.88 | 7.74 |
| Total Assets (in lakhs) | 4,648.21 | 6,478.54 | 8,302.83 |
| Total Liabilities (in lakhs) | 2,805.36 | 4,122.65 | 5,127.78 |
| Debt Equity Ratio | 0.56 | 0.69 | 0.38 |
| Current Ratio (in time) | 1.59 | 1.52 | 1.68 |
Effwa Infra & Research Limited IPO Peer Comparison
Effwa Infra & Research Limited’s key metrics include earnings per share, price-to-earnings ratio, and return on equity. Compared to VA Tech Wabag Limited and EMS Limited, Effwa shows strong EPS, moderate ROE, and solid valuation metrics.
| Company | CMP (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (Basic & Diluted)(₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Effwa Infra & Research Limited | – | 10 | – | 7.74 | 45.46 | 20.84 |
| VA Tech Wabag Limited | 1,280.90 | 2 | 33.95 | 37.73 | 17.10 | 253.24 |
| EMS Limited | 642.95 | 10 | 22.24 | 28.91 | 23.72 | 103.80 |
Effwa Infra & Research Ltd IPO Objective
The main objective of Effwa Infra & Research Limited is to fund working capital and capital expenditures for new office equipment.
- Funding working capital requirements: The company intends to utilize INR 33.00 crores from Net Proceeds in Fiscal 2024-2025 for working capital, aiming to increase profitability, unlock internal accruals for growth, and achieve business targets.
- Funding of capital expenditure requirements of the company towards new purchase of office equipment: The company plans to utilize INR 0.41 crores from Net Proceeds for upgrading office equipment and IT software at the registered office, enhancing coordination and communication among teams at different project locations.
- General corporate purposes: The company plans to use the net proceeds for general corporate purposes, including funding growth opportunities, covering business expenses, servicing borrowings, brand building, marketing, addressing contingencies, and other purposes.
Effwa Infra and Research IPO Risks And Challenges
Effwa Infra & Research Limited’s risks include potential litigation and legal changes that could increase expenses, challenges from bank guarantees that could affect working capital, and heavy reliance on a few clients that could adversely impact financial conditions and operations.
- Outstanding litigation and potential changes in law may increase their expenses and liabilities. They face risks from complaints, claims, or legal actions related to their operations, intellectual property, and employment matters, which could impact their business.
- The company issues financial and performance bank guarantees for projects, which may strain working capital and limit contract opportunities. The inability to secure sufficient guarantees or fulfill contract obligations could adversely affect business and financial conditions.
- A significant portion of their revenue comes from a few clients, who may reduce or cease business due to factors beyond their control. Loss or decreased business from these clients could materially impact the financial condition and operations.
Effwa Infra & Research Ltd IPO – Industry & Market Potential
The global water and wastewater treatment market, valued at approximately USD 303.45 billion in 2022, is projected to grow from USD 326.31 billion in 2023 to USD 573.29 billion by 2031, with a CAGR of 7.68%.
India’s water and wastewater management sector, projected to grow from $1.31 billion in 2020 to $2.08 billion by 2025, is driven by rising demand, government initiatives, and a shift towards advanced treatment technologies and zero discharge systems.
In the first half of 2022, Mumbai saw high housing sales driven by significant private investments, including Blackstone’s planned Rs. 1.7 lakh crore by 2030. Indian real estate attracted $5 billion in institutional investments in 2020.
Effwa Infra & Research Limited IPO – Type of Offer
Effwa Infra & Research Limited plans a fresh issue of shares, seeking INR 51.27 crores to meet working capital requirements. Additionally, the company proposes an offer for sale, intending to sell 324,800 existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 43.60 crores. The company intends to utilize the proceeds from the fresh issue to fund working capital, purchase new office equipment, and cover general corporate purposes.
- Offer for sale: Effwa Infra & Research Limited is offering to sell 324,800 existing shares worth INR 7.68 crores The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the selling shareholder | Maximum number of offered shares for sale (in millions) |
| Dr. Varsha Subhash Kamal | 4,65,000 |
| Mr. Subhash Ramavtar Kamal | 4,71,000 |
Effwa Infra and Research IPO Offer Size
The offer size of Effwa Infra & Research Limited is INR 51.27 crores, consisting of a fresh issue of 53,16,800 shares worth INR 43.60 crores and an offer to sell 9,36,000 shares worth 7.68 crores. The company seeks funds to meet working capital, purchase new office equipment, and cover general corporate purposes.
Effwa Infra & Research Limited IPO Allotment Structure
Effwa Infra & Research allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations, 324,800 shares are reserved for market makers.
● 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.
● Market Maker Reservation: A portion of shares, i.e. 324,800 shares, are reserved for marker makers.
How to apply for an Effwa Infra & Research IPO?
To apply for the Effwa Infra & Research IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Effwa Infra & Research IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Effwa Infra & Research Limited’s IPO at Alice Blue [M1] 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 to Check Effwa Infra & Research IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- 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.
- 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.
- Select the Effwa Infra & Research IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Effwa Infra & Research IPO.
- 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, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Effwa Infra & Research IPO:
Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Effwa Infra & Research 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.
NSE SME: You can also check the allotment status on the National Stock Exchange (NSE) and Small Medium Exchange (SME) official websites. 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.
Effwa Infra & Research IPO Offer Registrar
The registrar for the Effwa Infra & Research IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre,
Mahakali CavesRoad, Andheri East, Mumbai – 400 093, Maharashtra, India
Tel: 022 – 6263 8200
E-mail: [email protected]
Website: www.bigshareonline.com
Effwa Infra & Research IPO FAQs
1. What is the allotment date of the Effwa Infra & Research IPO?
The allotment date of the Effwa Infra & Research is July 10, 2024.
2. What is the price band of the Effwa Infra & Research IPO?
The price band of the issue is INR 78-82 per share.
3. What is the size of the Effwa Infra & Research IPO?
The offer size of Effwa Infra & Research Limited is INR 51.27 crores, consisting of a fresh issue of 53,16,800 shares worth INR 43.60 crores and an offer to sell 9,36,000 shares worth INR 7.68 crores. The company seeks funds to meet working capital, purchase new office equipment, and cover general corporate purposes.
4. What is the listing date of the Effwa Infra & Research IPO?
The listing date of Effwa Infra & Research is July 12, 2024.
