Denta Water IPO subscribed 2 times in first hour of bidding; GMP up 56%

The initial public offering (IPO) of Denta Water and Infra Solutions was subscribed fully in the first 20 minutes of bidding today, while it was booked over 2 times within an hour. Ahead of opening of the IPO, Denta Water has created a buzz in the unlisted market, with the shares commending a grey market premium (GMP) of ₹165, or 56%, over the issue price, indicating a strong listing on domestic bourses.

As per the latest data available on the BSE, issue was booked 2.3 times by 10:45 AM, amid strong response from retail and non-institutional investor (NII). The quota reserved for retail investor was booked 3.14 times, while NII portion received 3.43 times bidding. The qualified institutional buyer (QIB) portion is yet to get response from investors.

The company has reserved 50% of the offer for qualified institutional buyers, 15% for non-institutional investors, and remaining 35% for retail individual portion. The shares are being offered at a price band of ₹279-294 apiece, and the minimum lot size for an application is 50 shares and in multiple thereafter.

The three-day IPO of Denta Water opened for subscription today, and shares are expected to make debut on the BSE and NSE on January 29, 2025. The water and infrastructure solutions company looks to raise ₹220.50 crore via IPO route at a market value of ₹785 crore, which is entirely a fresh issue of 0.75 crore shares with no offer for sale components.

Established in 2016, Denta Water and Infra Solutions 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.

A day ahead of 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.

The IPO boom in India is far from over as six more companies - Hexaware Technologies, Vikran Engineering, PMEA Solar Tech Solutions, Ajax Engineering, All Time Plastics, and Scoda Tubes - have received approval to launch their public offers. So far in the financial year 2024-25, 96 Indian corporates raised an all-time high of ₹161,762 crore through main board IPOs, more than 3 times of ₹49,436 crore mobilised by 57 IPOs during the same period last year. 

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