About Envirotech IPO! Apply Between 13-17 September 2024 at ₹53-₹56 Per Share

Founded in 2007, Envirotech Systems Limited manufactures noise measurement and control solutions for industrial Founded in 2007, Envirotech Systems Limited manufactures noise measurement and control solutions for industrial and commercial applications. The company specialises in designing and supplying custom enclosures for noise reduction in machinery and mechanical equipment, suitable for indoor and outdoor applications. Envirotech Systems' product list includes Noise Test Booth, Engine Test Room Acoustics, Anechoic & Semi-anechoic Chamber, Acoustic Enclosure, Envirotech Noise Barriers, Poly Carbonate Noise Barriers, Metallic Noise Barriers, Echo Barrier, Acoustic Louvers, and Envirotech Metal Doors. The company offers its services across India and has a track record of successful projects in oil and gas, manufacturing, power generation, cement and steel, automotive and construction.

Envirotech Systems' competitive strengths lie in its early entry into the Acoustic Insulation sector, the promoters' two decades of valuable industry experience, an accomplished technical team, a strong commitment to research and development, strategic partnerships with industry experts, rigorous product testing and certifications, and an extensive customer database. The company's market presence and trust are underlined by its strong customer base across various segments. As of the latest available information, Envirotech Systems employs over 98 people.

The Objectives of the Issue

Envirotech Systems Limited intends to utilize the funds raised towards the following objectives:

1. Land and Building Acquisition: To set up a factory and purchase land and buildings.
2. Working Capital: Funding of working capital requirements of the Company.
3. General Corporate Expenses: For various corporate activities aligned with the company's strategic goals.
4. Issue Expenses: To cover the costs associated with the IPO process.

Highlights of Envirotech Systems IPO

Envirotech Systems IPO is set to launch with a book built issue of ₹30.24 crores. The issue comprises a fresh issue. Here are the key details of the IPO:

• Envirotech IPO opens for subscription on 13th September 2024 and closes on 17th September 2024.
• The allotment is expected to be finalized on 18th September 2024.
• Refunds will be initiated on 19th September 2024.
• Credit of shares to Demat accounts is also expected on 19th September 2024.
• The company will tentatively list on NSE SME on 20th September 2024.
• The price band is set at ₹53 to ₹56 per share.
• The fresh issue comprises 54 lakh shares, aggregating to ₹30.24 crores.
• The minimum lot size for application is 2000 shares.
• Retail investors need to invest a minimum of ₹112,000.
• The minimum investment for HNI is 2 lots (4,000 shares), amounting to ₹224,000.
• Share India Capital Services Private Limited is the book running lead manager for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.
• Share India Securities is the market maker, responsible for 702,000 shares.

Envirotech Systems IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 17th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Envirotech Systems IPO Issue Details/Capital History

The Envirotech Systems IPO is scheduled from 13th September to 17th September 2024, with a price band of ₹53 to ₹56 per share and a face value of ₹10. The total issue size is 5,400,000 shares, raising up to ₹30.24 crores through a fresh issue. The IPO will be listed on the NSE SME, with the shareholding increasing from 13,390,000 pre-issue to 18,790,000 post-issue. Share India Securities is the market maker responsible for 702,000 shares within the issue.

Envirotech Systems IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 2000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Envirotech Systems Ltd

Strengths:

• Early entry into the Acoustic Insulation sector, providing a competitive advantage
• Experienced promoters with over two decades of industry knowledge
• Accomplished technical team with extensive project execution experience
• Strong commitment to research and development and continuous product innovation
• Strategic partnerships with industry experts enhance technical expertise and market knowledge
• Rigorous product testing and certifications from recognised government bodies
• Extensive customer database across various industry segments

Weaknesses:

• Potential dependence on specific industries for revenue
• Limited geographical presence, primarily focused on the Indian market
• Possible vulnerability to economic cycles affecting industrial sectors

Opportunities:

• Growing awareness and regulations regarding noise pollution, increasing demand for acoustic solutions
• Potential for expansion into international markets
• Increasing industrialisation and urbanisation, driving demand for noise control solutions
• Possibility of diversifying into related environmental control products

Threats:

• Intense competition in the acoustic insulation and noise control market
• Rapid technological changes requiring continuous innovation
• Economic downturns affecting industrial investments and construction activities
• Potential regulatory changes impacting product standards or manufacturing processes

Financial Highlights: Envirotech Systems Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

Envirotech Systems Limited has demonstrated impressive financial growth over the past three fiscal years. The company's assets have grown significantly, increasing from ₹1,386.51 lakhs in FY22 to ₹3,867.47 lakhs in FY24, representing a growth of about 178.9% over two years. This substantial increase in assets indicates significant expansion in the company's operational capabilities and infrastructure.

Revenue has shown remarkable growth, rising from ₹1,849.54 lakhs in FY22 to ₹4,687.95 lakhs in FY24, marking an impressive increase of 153.5% over two years. The year-over-year growth from FY23 to FY24 was 63%, indicating strong market demand for the company's products and services.

The company's profitability has seen an extraordinary upward trajectory. Profit after tax rose significantly from ₹105.73 lakhs in FY22 to ₹1,142.88 lakhs in FY24, representing an exceptional growth of 981% over two years. The year-over-year growth in PAT from FY23 to FY24 was 344%, showing dramatically improved operational efficiency and cost management.

Net worth has shown consistent and strong growth, increasing from ₹404.4 lakhs in FY22 to ₹1,960.62 lakhs in FY24, a growth of about 384.8% over two years. This increase reflects the company's ability to generate and retain earnings, significantly strengthening its financial position.

Notably, total borrowings have decreased from ₹276.61 lakhs in FY22 to ₹240.5 lakhs in FY24, a reduction of about 13.1%, indicating improved financial health and reduced reliance on external debt.