Concord Enviro Systems Files IPO papers with Rs.192 Crore Fresh Issue

Concord Enviro Systems, a prominent player in the water and wastewater treatment industry, has initiated the process of raising funds through an initial public offering (IPO). The Mumbai-based company, backed by Mauritius-based AF Holdings, has submitted preliminary papers to the Securities and Exchange Board of India (SEBI) as it seeks to expand its market presence and capitalize on growth opportunities.

IPO Details and Shareholding Structure

The IPO will consist of a fresh issuance of equity shares amounting to Rs 192.3 crore, along with an offer-for-sale (OFS) of 51,94,520 equity shares by existing shareholders. AF Holdings, which holds a 39.07 percent stake in Concord Enviro Systems, plans to sell 47.4 lakh equity shares through the OFS. The Goel family, which owns 60.93 percent of the company, will offload 4,54,520 equity shares as part of the offering. The IPO is expected to enhance the company’s financial flexibility and support its growth initiatives.

Business Operations and Financial Performance

Concord Enviro Systems specializes in wastewater treatment and zero liquid discharge (ZLD) solutions, serving a diverse client base across various industries, including pharmaceuticals, chemicals, and food and beverages. In fiscal 2024, the company serviced 353 domestic and 24 international customers, demonstrating its strong market presence. With two manufacturing facilities in India and the UAE, and an in-house R&D team, Concord Enviro Systems has secured four patents in India and filed nine additional patent applications.

The company reported a robust financial performance in the year ending March 2024, with a 7.5-fold increase in profit to Rs 41.4 crore and a 44.8 percent rise in revenue to Rs 496.8 crore compared to the previous year. However, it faced challenges in fiscal 2023, where profit dropped to Rs 5.5 crore from Rs 16.5 crore in fiscal 2022, and revenue growth was modest at 4.2%. Despite these fluctuations, the company’s EBITDA for fiscal 2024 surged by 57.4% to Rs 68.2 crore, with a margin expansion of 110 basis points

Conclusion: Concord Enviro Systems’ upcoming IPO represents a significant milestone for the company as it seeks to bolster its market position and drive future growth. With strong financial backing, a diversified customer base, and ongoing investments in innovation, the company is well-positioned to capitalize on opportunities in the water and wastewater treatment industry.

Ready to grow your portfolio? Check out our Upcoming IPO and secure early investment opportunities. Take control of your financial future now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.