Concord Enviro Systems Files for IPO to Expand and Innovate

Concord Enviro Systems, an environmental engineering firm, has submitted preliminary papers with Sebi for an Initial Public Offering (IPO) aiming to raise Rs 192.3 crore. The funds will be used for expanding facilities, debt repayment, and new market growth. This marks the company’s second IPO attempt after an initial filing in 2022.

Concord Enviro Systems, an environmental engineering solutions firm, has filed fresh preliminary papers with Sebi to raise funds through an Initial Public Offering (IPO).

The proposed IPO comprises fresh issuance of equity shares worth Rs 192.3 crore and an Offer For Sale (OFS) of 51.94 lakh equity shares by promoters and an investor, according to the Draft Red Herring Prospectus (DRHP) filed on Tuesday.

The sellers in the OFS include promoters Prayas Goel and Prerak Goel, promoter groups Namrata Goel, Nidhi Goel, and Pushpa Goel, along with investor AF Holdings.

Proceeds from the fresh issue amounting to Rs 25 crore will be invested in Concord Enviro FZE (CEF) for setting up a new assembly unit for water treatment systems, and Rs 10.505 crore will be invested in Rochem Separation Systems (India) Private Ltd to expand its manufacturing facilities and support activities.

Additionally, the company will use Rs 50 crore in CEF for debt repayment, Rs 33.5 crore for technology and growth initiatives, Rs 20 crore for CEF's working capital, Rs 10 crore for expanding Roserve Enviro Private Limited's ''pay per use/pay as you treat'' business, and Rs 3.228 crore for capital expenditure on plant and machinery. A portion of the funds will also go towards general corporate purposes.

This is the company's second attempt to go public. Previously, Concord Enviro had filed draft IPO papers with Sebi in 2022 and received clearance but chose not to proceed.

Concord Enviro Systems specializes in industrial wastewater reuse and zero liquid discharge solutions, serving 377 customers globally as of March 31, 2024. The company exports to North America, Latin America, Africa, the Middle East, and Southeast Asia.

Motilal Oswal Investment Advisors and Equirus Capital are the lead managers for the IPO.

(With inputs from agencies.)