Denta Water and Infra IPO: Key Dates, Risks, and More – A Comprehensive Overview from the RHP
Denta Water and Infra IPO: Denta Water and Infra Solutions Limited, a company based in Karnataka that specializes in water and infrastructure solutions, is set to launch its initial public offering (IPO) on Wednesday, January 22. The company aims to raise funds from the Indian stock market through this offering.
The price band for the public issue has been set between ₹279 to ₹294 per share, with a lot size of 50 shares per lot.
As of January 20, the grey market premium (GMP) for Denta Water and Infra IPO is ₹145 per share. This suggests that investors are willing to pay a premium for the shares, with expectations that they will be listed at ₹439, a 49.31% increase from the upper price band of ₹294.
The grey market premium reflects investor sentiment towards a public issue.
Key details from Denta Water and Infra’s RHP (Red Herring Prospectus) include:
1. IPO Key Dates: The public issue will open for subscription on Wednesday, January 22, and close on Friday, January 24. The anchor round is scheduled for Tuesday, January 21. Allotment is expected to be finalized on Monday, January 27, with the IPO set to be listed on Wednesday, January 29, 2025.
2. Offer Type: Denta Water and Infra is offering a fresh issue of up to 75 lakh equity shares with a face value of ₹10 per share. There is no offer-for-sale (OFS) component in this offering.
3. IPO Objective: The company plans to utilize the ₹150 crore raised from the public issue to meet its working capital requirements. The remaining funds will be allocated towards general corporate purposes, as outlined in the RHP data.
4. Denta Water and Infra IPO Reservation: The company has allocated up to 50% of the public issue for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and a minimum of 35% for retail bidders.
5. Denta Water and Infra Promoters: The promoters of the company are Sowbhagyamma, Sujith T R, C Mruthyunjaya Swamy, and Hema H M.
6. Denta Water and Infra Business Overview: Denta Water and Infra Solutions Limited is a company specializing in water and infrastructure solutions. They are experts in designing, installing, and commissioning water management projects, particularly groundwater recharging projects.
7. Denta Water and Infra IPO Book-Runners: SMC Capitals Limited is the lead book-running manager for the public issue, with Integrated Registry Management Services Pvt. Ltd. also involved.
8. Denta Water and Infra Financials: The company reported a net profit of ₹24.1 crore for the quarter ending September 30, 2024. The net profit for the financial year 2023-24 increased by 19% to ₹59.72 crore compared to ₹50.11 crore in the previous financial year 2022-23. The net profit for the financial year 2021-22 was ₹38.33 crore.
9. Denta Water and Infra Net Worth: The company’s net worth was ₹1,884.63 crore as of the quarter ending September 30, 2024.
10. Denta Water and Infra IPO Risk Factor: There are certain internal risks, such as an ongoing enquiry by the Lokayukta Police, Bangalore, against promoter C Mruthyunjaya Swamy and legal proceedings initiated by the Enforcement Directorate. There is no guarantee that these legal proceedings will not be reopened by the authorities, as stated in the R
Mruthyunjaya Swamy, the CEO of the company, has been accused of engaging in corrupt practices and abusing his authority. These allegations were reported to the Securities and Exchange Board of India (SEBI).
Furthermore, the company heavily depends on government clients for its revenue, as stated in the RHP. Additionally, any delays in project completion could significantly affect the company’s business operations.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.