The Initial Public Offering (IPO) of Enviro Infra Engineers Limited has been generating significant interest from investors since it opened on November 22, 2024. The IPO is expected to remain open for bidding until November 26, 2024, giving investors a few more days to apply.
As of Day 1 of the subscription, the Enviro Infra Engineers IPO received a solid response, with bids placed for over two times the shares being offered. This shows that investors are keen on the company’s shares. The positive market sentiment has helped drive the IPO’s popularity. Following a trend reversal in the Indian stock market on Friday, the shares of Enviro Infra Engineers have also gained attention in the grey market, where shares are being traded at a premium.
The grey market premium (GMP), which gives an idea of how much the shares could list for on the stock exchange after the IPO, has been rising steadily. As of today, the GMP for Enviro Infra Engineers IPO has surged to ₹53, which is ₹22 higher than the ₹31 GMP observed on Friday. This marks a significant rise in just four days, with the GMP moving from ₹23 to ₹53. Stock market experts believe that this jump in the grey market is a sign of the strong demand from investors and a positive outlook on the company’s listing.
The grey market premium is seen as a strong indicator of how investors view the IPO. A higher GMP typically suggests that the shares are expected to trade at a price higher than the issue price once they are listed. In this case, with a GMP of ₹53, the shares of Enviro Infra Engineers may list at a price higher than the ₹140-₹148 per share range set in the IPO price band.
Subscription Status as of Day 2
On Day 2 of bidding, the subscription for Enviro Infra Engineers IPO has been impressive. The overall IPO has been subscribed 7.54 times, meaning that the demand for shares is more than seven times the number of shares being offered. Here’s how the subscription breaks down across different investor categories:
- Retail investors: The allocation set aside for retail investors has been oversubscribed by 5.75 times. This shows strong interest from individual investors looking to invest in the company.
- Non-institutional investors (NII): The NII category, which includes high-net-worth individuals (HNIs), has been subscribed 19.02 times, indicating a high level of interest from this group.
- Qualified Institutional Buyers (QIBs): The portion reserved for institutional investors has been subscribed 2.05 times, showing a moderate level of interest from institutions.
The high demand from both retail and non-institutional investors reflects the positive investor sentiment surrounding the IPO. Experts believe that the IPO could be a promising investment opportunity due to the company’s strong track record and growth prospects in the water and wastewater treatment industry.
With the strong subscription numbers and rising GMP, Enviro Infra Engineers IPO is gaining attention as a potentially attractive investment. However, before deciding to invest, it’s important for investors to consider factors such as the company’s valuation, industry outlook, and its growth potential in the coming years.
It is always advisable for investors to conduct their own research or consult with a financial advisor to assess whether the IPO aligns with their investment goals and risk tolerance. The IPO will close on November 26, 2024, so there are still a few days left for investors to participate.
The Enviro Infra Engineers IPO is off to a strong start, with rising demand and a positive grey market sentiment. Investors looking for opportunities in the growing water and wastewater treatment sector may find this IPO appealing.
