Denta Water share price opens 12% higher on listing day

Denta Water and Infra Solutions, which received an overwhelming response for its ₹220.50 crore IPO, made a decent debut on stock exchanges on Wednesday, albeit the listing was below Street expectations. Denta Water shares were listed at ₹330 on the BSE, a premium of 12.2% over the initial public offering (IPO) price of ₹294. On the NSE, the stock opened 10.5% higher at ₹325 over the issue price.

Post listing, Denta Water share price gained as much as 15% to hit a high of ₹346.45 on the BSE, while it touched ₹341.25 level on the NSE. The market capitalisation climbed to ₹925 crore. Meanwhile, the equity benchmarks Sensex and Nifty were trading 0.5% higher, tracking firm cues from global peers.

Listing below Street estimates

The debut of Denta Water shares was lower than the market expectations as the stock was commanding grey market premium (GMP) of ₹73, or 24.8%, in the unlisted market, indicating the listing price to be around ₹367. The GMP of Denta Water shares has nearly halved from its peak of ₹150 attained during opening of the issue on January 22, 2025, amid volatility in the broader market.

“The company made a quiet stock market debut…participants in the IPO may hold on their shares for a long time,” says Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

Denta Water’s IPO subscribed 221.5 times

The IPO of water and infrastructure solutions company, which was entirely a fresh issue of 0.75 crore shares, was subscribed 221.54 times as it received bids worth ₹34,195.41 crore for its ₹220.50 crore issue. The non-institutional investor category received record 507 times bidding, followed by 236.94 times in qualified institutional buyer segment, and 90.38 in retail quota. The shares were offered at a price band of ₹279-294 per share and the lot size was 50 and multiple thereafter.

Denta Water intends to use IPO proceeds to meet working capital requirements and general corporate purposes. Formed in 2016, the company is engaged in designing, installing, and commissioning water management infrastructure projects with expertise in groundwater recharge projects. Over the years, the water engineering and EPC services provider has created a niche in groundwater recharging segment, which contributes around 95% of its revenue.

Ahead of the IPO, the company raised ₹66.15 crore from anchor investors by allocating 22.50 lakh equity shares at upper end of the price band of ₹294 per share. The anchor book saw participation from foreign and domestic Institutions such as Abakkus Diversified Alpha Fund-2, Persistent Growth Fund-Varsu India Growth Story Scheme 1, Rajasthan Global Securities Private Limited, Saint Capital Fund, Finavenue Capital Trust- Finavenue Growth Fund, Chhatisgarh Investments Limited, Steptrade Revolution Fund, Mint Focused Growth Fund PCC- Cell 1, Astorne Capital VCC – Arven, Aarth AIF. It is notable that no equity shares were allocated to domestic mutual funds.

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