The initial public offering (IPO) of Denta Water and Infra Solutions Limited has garnered robust investor interest on its opening day, with the issue being subscribed 17.07 times as per data from the Bombay Stock Exchange (BSE). The IPO opened for subscription on Wednesday, January 22, and offers a fresh issue of up to 75 lakh equity shares through a book-building process.
Day 1 Subscription Highlights
On the first day, investors bid for a total of 8,96,36,900 equity shares, far exceeding the 52,50,000 shares on offer.
- Non-Institutional Investors: Subscribed a staggering 36.23 times.
- Retail Investors: Subscribed 17.67 times.
- Qualified Institutional Buyers : Subscribed 1.67 times.
The IPO will remain open for subscription until Friday, January 24.
IPO Price Band and Lot Size
The price band for the IPO is fixed at ₹279 to ₹294 per share, with a minimum lot size of 50 shares. Prior to the public issue, the company raised ₹66.15 crore from anchor investors.
Grey Market Premium (GMP)
The grey market premium (GMP) for Denta Water and Infra’s IPO stood at ₹150 per share as of January 22. With the IPO’s upper price band at ₹294, the shares are anticipated to list at around ₹444, reflecting a premium of 51.02% over the issue price. However, the GMP has dropped from ₹165 to ₹150 after the first day of bidding.
Company Overview and IPO Objectives
Denta Water and Infra Solutions Limited specializes in water and infrastructure management projects, particularly in designing, installing, and commissioning water management systems. The company also has expertise in groundwater recharging projects.
The IPO is expected to raise ₹150 crore for working capital requirements, with the remaining funds allocated for general corporate purposes, according to the red herring prospectus.
Listing Date and Book-Running Lead Manager
The shares of Denta Water and Infra are scheduled to be listed on the stock exchanges on Wednesday, January 29, 2025. SMC Capitals Limited is the book-running lead manager for the IPO, while Integrated Registry Management Services Pvt. Ltd. is the registrar.
Investor Sentiment and Outlook
Denta Water and Infra’s strong Day 1 performance indicates healthy demand across investor categories, particularly from NIIs and retail investors. Analysts believe the company’s focus on water infrastructure, coupled with its growth potential, has driven the enthusiastic response.
Stay tuned for updates on the IPO’s Day 2 subscription status and the final listing price.