Enviro Infra Engineers Files for IPO to Boost Resources

Enviro Infra Engineers, specializing in sewage treatment plants, has filed for an IPO with SEBI. The IPO includes a fresh issue of 4.42 crore shares and a 52.68 lakh share offer for sale by promoters. Funds will be used for working capital, debt payment, and subsidiary development.

Enviro Infra Engineers, a major player in the turnkey sewage treatment project sector, has submitted its draft papers for an initial public offering (IPO) with the markets regulator Sebi. The company aims to raise funds through this IPO to further its development efforts.

The IPO will be a mix of fresh issuance of 4.42 crore equity shares and an offer for sale (OFS) of 52.68 lakh shares by the company's promoters, as detailed in the draft red herring prospectus (DRHP) filed last week. Currently, promoters hold more than 93 per cent stake in the firm.

Proceeds from the fresh issue, amounting to Rs 181 crore, will be directed towards working capital requirements. Additionally, Rs 100 crore will be allocated for debt repayment, and Rs 30 crore will be invested in the company's subsidiary, EIEL Mathura Infra Engineers, to construct a 60 million litres per day Sewage Treatment Plant (STP) in Mathura, Uttar Pradesh. The remaining funds will go towards general corporate purposes.

Enviro Infra Engineers is involved in designing, constructing, operating, and maintaining water and wastewater treatment plants, as well as water supply schemes for government bodies. The company's installed treatment processes at most STPs comply with zero liquid discharge standards, allowing the treated water to be used for various applications, including horticulture, washing, refrigeration, and other industrial processes.

Hem Securities is the sole book-running lead manager for this public issue.

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