Denta Water and Infra IPO: From key dates to risks — here are 10 things to know from RHP | Stock Market News

Denta Water and Infra IPO: Denta Water and Infra Solutions Limited, a Karnataka-based water and infrastructure solutions company, will launch its initial public offering (IPO) on Wednesday, January 22, as it aims to raise funds from the Indian stock market. 

The company has fixed the price band for the public issue in the range of ₹279 to ₹294 per share, with a lot size of 50 shares per lot. 

Denta Water and Infra GMP

As of January 20, the grey market premium (GMP) for Denta Water and Infra IPO stands at ₹145 per share. With the upper price band at ₹294, the shares are expected to be listed at ₹439, a premium of 49.31 per cent, according to data collected from Investorgain.com.

Grey market premium indicates the investors’ willingness to pay more for a public issue. 

Here are 10 things to know from Denta Water and Infra’s RHP

1. Denta Water and Infra IPO Key Dates: The public issue is poised to open for subscription on Wednesday, January 22, and will close on Friday, January 24.

The anchor round for the issue is set to be held on Tuesday, January 21.

The allotment for the public issue is expected to be finalised on Monday, January 27, as the Denta Water and Infra IPO is expected to be listed on the stock market on Wednesday, January 29, 2025.

2. Denta Water and Infra IPO Offer Type: The company is offering a completely fresh issue of up to 75 lakh equity shares with a face value of ₹10 per share. The offer does not have an offer-for-sale (OFS) component.

3. Denta Water and Infra IPO Objective: The company aims to use ₹150 crore raised from the public issue to meet its working capital requirements, and the remaining amount will be used for general corporate purposes, according to the RHP data. 

4. Denta Water and Infra IPO Reservation: The company has reserved not more than 50 per cent of the public issue for the Qualified Institutional Buyers (QIBs), not less than 15 per cent of the offer for the Non-Institutional Investors (NIIs) and not less than 35 per cent of the issue for the retail bidders.

5. Denta Water and Infra Promoters: Sowbhagyamma, Sujith T R, C Mruthyunjaya Swamy, and Hema H M are the promoters of the company.

6. Denta Water and Infra’s Business Overview: Denta Water and Infra Solutions Limited is a water and infrastructure solutions company which is involved in designing, installing, and commissioning water management projects with expertise in groundwater recharging projects.

7. Denta Water and Infra IPO Book-Runners: SMC Capitals Limited is the book-running lead manager of the public issue, while Integrated Registry Management Services Pvt. Ltd. 

8. Denta Water and Infra’s Financials: The company reported a ₹24.1 crore net profit for the September 30, 2024 quarter.

The company’s net profit for the year financial year ended 2023-24 rose 19 per cent to ₹59.72 crore, compared to ₹50.11 crore in the previous financial year 2022-23, as per the RHP filling. The net profits for the financial year ended 2021-22 was at ₹38.33 crore.

9. Denta Water and Infra’s Net Worth: The company’s net worth stood at ₹1,884.63 crore as of the quarter ended September 30, 2024.

10. Denta Water and Infra IPO Risk Factor: Certain internal risks exist, such as promoter C Mruthyunjaya Swamy’s being subject to an enquiry by the Lokayukta Police, Bangalore, and the Enforcement Directorate initiating certain legal proceedings against him. There is no assurance that legal proceedings will not be reopened by the authorities, as per the RHP.

C Mruthyunjaya Swamy was also subject to allegations of some complaints over indulging in corrupt practices and the misusing of authority which were filed with the Securities and Exchange Board of India (SEBI).

The company also relies heavily on government clients for its revenues, as per the RHP. Other factors include that any delay in the completion of a project can impact the company’s business operations.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.