Envirotech Systems Limited is launching an IPO with a fresh issue of 54,00,000 shares worth INR 30.24 crores. The company aims to purchase land, fund working capital, and cover general corporate expenses efficiently.
Envirotech Systems IPO – Important Dates
| Envirotech Systems Limited IPO Date | September 13, 2024 to September 19, 2024 |
| Envirotech Systems Limited IPO Listing Date | September 20, 2024 |
| Envirotech Systems Limited IPO Price | INR 53-56 per share |
| Envirotech Systems Limited IPO Lot Size | 2000 Shares |
| Envirotech Systems Limited IPO Total Issue Size | INR 30.24 crores |
| Envirotech Systems Limited IPO Basis of Allotment | September 18, 2024 |
| Envirotech Systems Limited IPO Initiation of Refunds | September 19, 2024 |
| Envirotech Systems Limited IPO Credit of Shares to Demat | September 19, 2024 |
| Envirotech Systems Limited IPO Issue Type | Book Built Issue IPO |
| Envirotech Systems Limited IPO Listing At | NSE SME |
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Envirotech Systems Limited IPO – Company Profile
Envirotech Systems Limited, established in 2007, specializes in noise measurement and control. It offers innovative, cost-effective acoustical solutions for industrial, commercial, architectural, and environmental markets. With over 98 employees, it provides comprehensive research and engineering services.
With state-of-the-art facilities and skilled personnel, the company manufactures customized noise control solutions for diverse industries. Their focus on innovation, quality, and customer satisfaction drives long-term client relationships and continuous growth.
Specializing in noise control, Envirotech Systems Limited provides acoustic enclosures for equipment like gas turbines, compressors, diesel generators, and CNC machines. Their customized solutions ensure durability, regulatory compliance, and optimal performance across diverse industrial applications.
Envirotech Systems Ltd IPO Fundamental Analysis
Envirotech Systems Limited’s financial analysis reveals a mixed performance. Revenue has grown significantly, accompanied by increased profitability, improved EPS, higher RoNW, more robust liquidity, efficient inventory management, and reduced reliance on debt financing.
- Revenue Trend: The revenue increased from ₹1,751.81 lakhs in March 2022 to ₹2,715.49 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 4,501.98 lakhs.
- Equity and Liabilities: Both equity and liability have 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 increased from ₹105.73 lakhs in March 2022 to ₹1,142.88 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.81 in March 2022 to ₹8.54 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 26.14% to 58.29%, indicating an increase 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 increase in the Inventory Turnover Ratio, which might suggest stronger sales or efficient inventory management.
Envirotech Systems IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 1,751.81 | 2,715.49 | 4,501.98 |
| Equity (₹ in lakhs) | 404.4 | 661.73 | 1,960.62 |
| Expenses (₹ in lakhs) | 1,705.57 | 2,522.21 | 3,127.77 |
| Profit and Loss After Tax (₹ in lakhs) | 105.73 | 257.34 | 1,142.88 |
| Diluted EPS only (₹) | 0.81 | 1.98 | 8.54 |
| Return on Net Worth (%) | 26.14 | 38.89 | 58.29 |
| NAV per Equity Share (₹) | 3.11 | 5.09 | 14.64 |
| Total Assets (in lakhs) | 1,386.51 | 2,275.73 | 3,867.47 |
| Total Liabilities (in lakhs) | 982.11 | 1,614 | 1,906.85 |
| Debt Equity Ratio | 1.33 | 1.38 | 0.46 |
| Current Ratio (in times) | 1.44 | 1.34 | 2.31 |
| Inventory Turnover Ratio | 36.21 | 83.07 | 39.96 |
Envirotech Systems Limited IPO Peer Comparison
Envirotech Systems Limited believes no other listed company is precisely comparable to them regarding business model size and financials.
Envirotech Systems Ltd IPO Objective
The main objective of Envirotech Systems Limited is to purchase land and buildings for a factory and fund its working capital requirements.
- Purchase Land and Building for setting up factory: The company intends to use INR 12 crores from the issue proceeds to acquire land and buildings, enhance operational capacity, and support expansion plans in the acoustic sound insulation manufacturing sector.
- Funding of the company’s working capital requirements: The company plans to utilize INR 8 crores from the issue proceeds to meet increased working capital requirements, supporting current and potential operations through a combination of internal accruals, financing, and unsecured loans.
- General Corporate Expenses: The company will deploy the balance of funds for general corporate purposes, including brand building, strengthening marketing activities, and addressing other strategic needs to enhance market presence and operational efficiency.
Envirotech Systems IPO Risks And Challenges
Envirotech Systems Limited’s risk includes tax proceedings that could potentially affect financial stability, lease non-renewal that could impact operations, and property purchase issues involving payment delays and transfer complications that could hinder expansion plans and incur additional costs.
- Their company is involved in tax proceedings for minimal amounts, with potential adverse outcomes impacting financial stability. Details of ongoing and possible future legal proceedings are provided, but there is no assurance of favourable resolutions.
- Their registered office is leased from Mrs. Preeta Shekhawat for 11 months starting December 2023. Non-renewal or termination of the lease could force relocation, potentially impacting operations, profitability, and brand image.
- The property purchase from Oriental Trimex Limited involves risks for Envirotech Systems Limited, including timely payment obligations and potential transfer delays. These issues could impact expansion plans, incur additional costs, and affect financial stability.
Envirotech Systems Ltd IPO – Industry & Market Potential
The global acoustic insulation market is forecasted to grow from USD 14.08 billion in 2021 to USD 17.07 billion by 2026. The noise control systems market is set to expand from USD 6.4 billion in 2023 to USD 10.3 billion by 2033.
India’s NVH (Noise, Vibration, and Harshness) Testing market, valued at USD 141 million in 2023, is expected to grow at a CAGR of 7.33% through 2029, driven by expansion in automotive, aerospace, and construction sectors.
India is set to become the world’s third-largest air passenger market by 2030, with domestic traffic reaching 270.34 million and international traffic 56.9 million in FY23. NVH testing demand is growing due to aerospace, construction, and manufacturing expansions.
Envirotech Systems Limited IPO – Type of Offer
Envirotech Systems Limited is launching an IPO with a fresh issue of 54,00,000 shares worth INR 30.24 crores. The company aims to purchase land, fund working capital, and cover general corporate expenses efficiently.
Envirotech Systems IPO Offer Size
The offer size of Envirotech Systems Limited is INR 30.24 crores, consisting of a fresh issue of 54,00,000 shares. The company seeks funds to purchase land, fund working capital, and cover general corporate expenses efficiently.
Envirotech Systems Limited IPO Allotment Structure
Envirotech 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. 702,000 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. 702,000 shares, are reserved for market makers.
Read more about Envirotech Systems IPO Allotment Status
How to apply for Envirotech Systems IPO?
To apply for the Envirotech 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.
- Check for IPO Details: Once your account is active, you can check for the Envirotech Systems Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Envirotech 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.
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How do you check Envirotech Systems IPO Allotment Status?
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 the 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 Envirotech 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 Envirotech Systems Limited 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, 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 Envirotech Systems Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Envirotech 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.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). 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.
Read more about Envirotech Systems IPO Day 2 Subscription
Envirotech Systems Ltd IPO Offer Registrar
The registrar for the Envirotech Systems Limited 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
302, Kusal Bazar, Nehru Place,
New Delhi, Delhi – 110019
Tel. No.: 011-42425004
Email: [email protected]
Website: www.bigshareonline.com
Read more about Envirotech Systems IPO Day 3 Subscription
Envirotech Systems IPO – FAQs
1. What is the allotment date of the Envirotech Systems IPO?
The allotment date of the Envirotech Systems Limited IPO is September 18, 2024.
2. What is the price band of the Envirotech Systems IPO?
The price band of the issue is INR 53-56 per share.
3. What is the size of the Envirotech Systems IPO?
The offer size of Envirotech Systems Limited is INR 30.24 crores, consisting of a fresh issue of 54,00,000 shares. The company seeks funds to purchase land, fund working capital, and cover general corporate expenses efficiently.
4. What is the listing date of the Envirotech Systems IPO?
The listing date of Envirotech Systems Limited’s IPO is September 20, 2024.
