Concord Enviro Systems shares list at ₹826, an 18% premium to their issue price

Shares of Concord Enviro Systems Ltd., made their stock market debut on Friday, December 27, listing at ₹826 per share, compared to their IPO price of ₹701.

The listing price implies a premium of close to 18% from the IPO price for Concord Enviro Systems.

The ₹500-crore initial share sale of Concord Enviro Systems, an environmental engineering solutions firm, was opened for bidding between December 19 and December 23.

The company had a fixed price band between ₹665 and ₹701 per share, where investors placed bids for a minimum of 21 shares and in multiples thereof.

The IPO included a fresh issuance of equity shares worth ₹175 crore and an Offer-for-Sale (OFS) of 46.41 lakh equity shares valued at ₹325.33 crore, at the upper-end of the price band, by promoters and an investor.

Those who sold shares in the OFS are, promoters — Prayas Goel and Prerak Goel, promoter groups — Namrata Goel, Nidhi Goel and Pushpa Goel — and investor AF Holdings.

Proceeds from the fresh issue will be invested in Concord Enviro FZE (CEF) for setting up a new assembly unit for water treatment systems as well as its working capital requirement.

Additionally, funds will be invested in Rochem Separation Systems (India) Private Ltd to expand its manufacturing facilities and support activities, payment of debt, technology and growth initiatives, working capital requirements and for general corporate purposes.

Ahead of the issue launch, the company had raised ₹150 crore from anchor investors. ICICI Prudential Mutual Fund (MF), Kotak MF, Bandhan MF, PGIM India MF, LIC MF, SBI General Insurance Company, Societe Generale and Morgan Stanley Asia (Singapore) Pte Ltd, were among the anchor investors.

Concord Enviro Systems is an integrated solutions provider for industrial waste water reuse and zero liquid discharge solutions, with an in-house position across the value chain. The company’s reach extends to diverse regions with exports to countries in North America, Latin America, Africa, the Middle East, and Southeast Asia.

As of the five-month period ended August 31, 2024, their orderbook was ₹501.7 crore, of which 74.50% comprises system and plant and module orders and 25.50% comprises after-sales revenue (including consumables and spares orders and O&M services orders).

Motilal Oswal Investment Advisors Ltd, Equirus Capital Pvt Ltd were the book running lead managers of the Concord Enviro IPO, while Link Intime India Pvt Ltd was the registrar.