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Salient features of the IPO:

Concord Enviro Systems Ltd. (CESL), is a global water and wastewater treatment and reuse solutions provider, including zero-liquid discharge (ZLD) technology, is coming up with an IPO to raise around Rs. 483.6 - 500.3cr, which opens on 19rd Dec. and closes on 23th Dec. 2024. The price band is Rs. 665 - 701 per share.

• This public issue is a combination of fresh issue (Rs. 175cr) and OFS (Rs. 308.60 - 325.3cr). From the fresh issue net proceeds, the company will be utilizing Rs. 25.0cr for Investment in our wholly owned Subsidiary, CEF for financing its capital expenditure requirements for the greenfield project to develop an assembly unit to assemble systems and plants for treatment of water, waste water and related membrane modules, Rs. 10.51cr for Investment in our wholly owned Subsidiary, Rochem Separation Systems (India) Private Ltd (“RSSPL”) for financing its capital expenditure requirements for the brown field project, Rs. 3.28cr for funding capital expenditure requirements of the Company for purchase of plant and machinery, Rs. 50.0cr for repayment or prepayment, in full or part, of certain borrowings availed by the wholly owned Subsidiary, CEF. Rs. 20.0cr for Investment in wholly owned Subsidiary, CEF, for funding working capital requirements of CEF, Rs. 10.0cr for Investment in the joint venture, Roserve Enviro Private Limited to grow the pay per use/pay as you treat business, Rs 23.5cr for Investment in technology and other growth initiatives for access to new markets.

• Some of the promoter & promoter group (P&PG) entities are participating in the OFS and are offloading 0.045cr equity shares. One of the investors is also offloading 0.41cr equity shares. Post-IPO, the P&PG and public shareholders will have 51.39% and 48.61% stake in the company, respectively.

Key competitive strengths:

• Expertise in ZLD technology in India and well placed to harness global industry opportunities

• Established presence in large international markets

• Diversified customer base across multiple industries and geographies.

• Focus on innovation supported by R&D and design capabilities

• Promoters and management team delivering financial performance

Risk and concerns:

• General slowdown in the global economic activities

• Subsidiaries have incurred losses in past

• Low capacity utilization

• Dependent on R&D activities

• Competition

• Revenue concentration from top 10 customers

Below are the key highlights of the company:

• The outlook for industrial water and wastewater management in India is promising, driven by growing water scarcity, stringent regulations, and the need for sustainable practices. The Indian water and wastewater treatment market valued at US$ 2.1B in FY24 and is expected to grow at a CAGR of 13.5% during the FY24-29 period. Key trends include the adoption of advanced technologies like reverse osmosis membranes, membrane bioreactors, and forward osmosis, as well as the concept of wastewater recycling and zero discharge systems gaining traction in industries such as power, food and beverage, chemicals, and textiles.

• Incorporated in July 1, 1999, CESL is a global water and wastewater treatment and reuse solutions provider, including zero-liquid discharge (ZLD) technology.

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SEBI Registration no.: INZ 000160131