Denta Water & Infra Solutions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Jan 2025 – 24 Jan 2025
- Listing date
- 29 Jan 2025
- Face value
- ₹10 per share
- Issue price
- ₹294 per share
- Lot size
- 50 shares
- Listing at
- NSE
- Total issue size
- ₹221 Cr
- Market cap at offer price
- ₹785 Cr
- Promoter holding
- 100.00% → 71.91% pre-issue → post-issue
- ISIN
- INE0R4L01018
- Registrar
- Integrated Registry Management Services Pvt.Ltd.
- Lead managers
- SMC Capitals Ltd.
- Registered office
- 40, 3rd floor, Sri Lakshminarayana Mansion, South End Road, Basavanagudi, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 22,50,000 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 50 shares per lot, in multiples, at ₹294
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 50 | ₹14,700 |
| Retail (max) | 13 | 650 | ₹1,91,100 |
| S-HNI (min) | 14 | 700 | ₹2,05,800 |
| S-HNI (max) | 68 | 3,400 | ₹9,99,600 |
| B-HNI (min) | 69 | 3,450 | ₹10,14,300 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 31.11 | 18.13 |
| P/E (×) | 9.45 | 16.22 |
| Price to book (×) | 5.01 | — |
| Market cap | — | ₹785 Cr |
Key performance indicators
- Return on net worth
- 36.36%
- ROCE
- 76.99%
- Debt / equity
- 0.01
- PAT margin
- 25.03%
- NAV per share
- ₹85.55
- Price to book
- 5.01
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Denta Water & Infra Solutions
Denta Water and Infra Solutions Limited was incorporated in November 2016 as 'Denta Properties and Infrastructure Private Limited' and subsequently renamed to its current name in 2023. The company is engaged in the design, installation, commissioning, operations and maintenance of water management infrastructure projects with expertise in ground water recharging projects using recycled water. Additionally, the company undertakes construction projects in the field of railways and highways. The company is one of the few in India with experience and expertise in ground water recharging using recycled water. For the six months period ended September 30, 2024, the company derived 97.51% of its revenue from water management/irrigation business. The company operates primarily in Karnataka, with 83.98% of its revenue from operations in the six months ended September 30, 2024 derived from the Government of Karnataka.
Company Analysis
from RHPDenta Water and Infra Solutions Limited is a water and infrastructure solutions company engaged in design, installation, commissioning and maintenance of water management infrastructure projects, particularly ground water recharging, and construction projects in railways and highways.
Denta Water and Infra Solutions Limited was incorporated in November 2016 as 'Denta Properties and Infrastructure Private Limited' and subsequently renamed to its current name in 2023. The company is engaged in the design, installation, commissioning, operations and maintenance of water management infrastructure projects with expertise in ground water recharging projects using recycled water. Additionally, the company undertakes construction projects in the field of railways and highways. The company is one of the few in India with experience and expertise in ground water recharging using recycled water. For the six months period ended September 30, 2024, the company derived 97.51% of its revenue from water management/irrigation business. The company operates primarily in Karnataka, with 83.98% of its revenue from operations in the six months ended September 30, 2024 derived from the Government of Karnataka.
Objects of the Issue
- To meet working capital requirements ₹1,500.00 million p.25
- General corporate purposes, subject to the applicable laws (not to exceed 25% of Gross Proceeds) ₹453.42 million p.25
- To meet working capital requirements of our Company ₹1,500.00 million p.100
- General corporate purposes ₹453.42 million p.100
- Funding working capital requirements for execution of projects from current and future order books ₹1,325.00 million p.105
- General corporate purposes including strategic initiatives, creation of collaterals, monetisation of assets, partnerships, tie-ups, joint ventures or acquisitions ₹453.42 million p.105
- General corporate purposes
Issue Structure
- Total Issue
- ₹2,205.00 million
- Fresh Issue
- Fresh Issue of up to 7,500,000 Equity Shares of face value ₹10 each aggregating up to ₹2,205.00 million
- Offer for Sale
- Not Applicable
- Price Band
- ₹279.00 to ₹294.00 per Equity Share (Floor Price ₹279, Cap Price ₹294)
- Lot Size
- 50 Equity Shares and in multiples of 50 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through project-based contracting in water management and infrastructure sectors. Revenue is generated from design, installation, commissioning and operation & maintenance of water management infrastructure projects (including lift irrigation and ground water recharging projects) and construction projects in railways and highways. The company procures government contracts either directly (independently or as consortium partner) or as sub-contracts. The company recognizes revenue using the 'percentage of completion method' for long-term contracts.
Business Segments
SWOT Analysis
- • First public issue with no prior market history creates valuation uncertainty(p.1)
- • Established expertise in ground water recharging using recycled water(p.23)
- • Strong order book demonstrates revenue visibility(p.37)
- • Diversified project experience across water and infrastructure segments(p.23)
- • Execution of large water management projects across multiple joint ventures(p.52)
- • Diversified project portfolio with government contracts in water infrastructure(p.52)
- • Strong historical revenue growth with improving profitability(p.78)
- • Solid financial position with positive working capital and low debt levels(p.76)
- • Established expertise in water management projects with focus on groundwater recharging(p.110)
- • In-house design and engineering capabilities for complex water infrastructure(p.110)
- • Strong and experienced management team with deep sector expertise(p.110)
- • Strong order book providing revenue visibility(p.110)
- • Established track record with zero project cost and time overruns(p.110)
- • Asset-light business model reducing capital requirements and maintenance costs(p.110)
- • Established expertise in water management projects with focus on groundwater recharging(p.185)
- • In-house design and engineering capabilities for complex water projects(p.186)
- • Strong order book with ₹7,524.51 million outstanding work(p.187)
- • Proven track record of on-time project execution(p.188)
- • Asset-light business model with low capital requirements(p.188)
- • Experienced promoter with 38 years in civil engineering sector(p.187)
- • Specialized expertise in ground water recharging projects using recycled water(p.318)
- • Growing revenue and profitability track record(p.318)
- • Strong order book position(p.319)
- • Healthy operating EBITDA margins(p.318)
- • Revenue growth from ongoing projects and completion of projects(p.335)
- • Strong profitability with high operating margins(p.337)
- • Consistent profit growth over three years(p.337)
- • Growing operational cash generation capacity(p.341)
- • Excessive dependence on Government of Karnataka for revenues(p.38)
- • Heavy reliance on government clients creates revenue concentration risk(p.37)
- • Significant customer concentration with top 5 customers representing 44.99% of revenue(p.44)
- • High dependence on limited number of raw material suppliers(p.46)
- • Negative cash flows from operating activities in recent periods(p.45)
- • Time overruns in 10 of 17 ongoing projects(p.51)
- • High employee attrition including loss of two CFOs in one year(p.42)
- • Promoter faces serious legal and corruption allegations(p.35)
- • Dependence on unincorporated joint ventures with shared and several liabilities(p.52)
- • Restrictive covenants in bank guarantees limiting operational flexibility(p.52)
- • High working capital requirements dependent on bank facilities(p.59)
- • Small workforce with limited employee base concentrated at project sites(p.52)
- • Inadequate insurance coverage relative to fixed assets and total assets(p.54)
- • Past delays in GST returns and statutory compliance payments(p.55)
- • Government contractor business with slow client payment realization(p.105)
- • Significant working capital requirements increasing substantially with business growth(p.105)
- • Heavy dependence on Government of Karnataka contracts(p.206)
- • Geographic concentration in Karnataka state only(p.185)
- • Limited scale relative to larger competitors(p.210)
- • Concentration among top customers(p.206)
- • History of delayed statutory compliance(p.209)
- • Property ownership complications with one promoter-held asset(p.212)
- • Dependence on Karnataka state government budgetary allocations(p.319)
- • Negative operating cash flow in recent periods(p.318)
- • High working capital requirements tied to project payment modifications(p.319)
- • Reliance on tender-based project awards(p.319)
- • Substantial dependence on State Government of Karnataka contracts(p.344)
- • Significant litigation exposure related to promoter(p.351)
- • Pending motor vehicle accident litigation against company(p.351)
- • Inability to establish communication with extended promoter group members(p.359)
- • Expansion into North India and other regions beyond Karnataka(p.47)
- • Growing water and wastewater treatment market in India(p.23)
- • Significant infrastructure investment and government initiatives(p.18)
- • Large untreated sewage capacity creates demand for treatment services(p.23)
- • Expansion into new geographical markets within India's infrastructure sector(p.58)
- • Leverage core competencies in water management project execution(p.58)
- • Monetization of existing properties for value creation(p.58)
- • Growth in India's water and irrigation infrastructure development(p.52)
- • Rising demand for water treatment driven by water scarcity and pollution concerns(p.128)
- • Government infrastructure investment and capital expenditure expansion(p.125)
- • India's large gap between sewage generation and treatment capacity requiring massive infrastructure investment(p.132)
- • Growing focus on water recycling and reuse through government initiatives(p.144)
- • Significant government budgetary allocations for water and wastewater treatment(p.149)
- • Major flagship government programs including Namami Gange and Jal Jeevan Mission(p.140)
- • Significant market growth in water and wastewater treatment sector(p.184)
- • Geographic expansion beyond Karnataka(p.189)
- • Growing demand for water reuse and recycling solutions(p.189)
- • Government infrastructure focus including railways and highways(p.189)
- • Large-scale groundwater recharging initiatives from government(p.181)
- • Expansion of Jal Jeevan Mission with increased budget allocation(p.159)
- • Scaling of ground water recharging model to other Indian states(p.319)
- • Expansion into railways and highways construction beyond water projects(p.318)
- • Government focus on wastewater management infrastructure(p.318)
- • Infrastructure project development expansion in Karnataka(p.344)
- • Expansion through improved resource utilization and project execution(p.344)
- • Government contracts can be terminated for convenience without cause(p.38)
- • Government budget cuts and policy changes can impact project awards(p.38)
- • Intense competition and aggressive bidding by competitors(p.50)
- • Commodity price volatility impacts material costs(p.48)
- • Regulatory scrutiny and compliance risk with government contracts(p.50)
- • Risk of government policy changes and shifting priorities(p.38)
- • Unresolved complaints to SEBI and authorities create regulatory uncertainty(p.36)
- • Dependence on government contracts and policy changes affecting project pipeline(p.58)
- • Seasonal weather disruptions affecting project execution timelines(p.55)
- • Risk of equipment breakdown and operational disruptions(p.57)
- • Dependence on third-party contractors with limited control over performance(p.53)
- • Exposure to labour disputes and wage inflation(p.52)
- • Volatility in construction material costs and input inflation(p.63)
- • Regulatory and compliance uncertainties including labour law changes(p.63)
- • Climate change impacts on water availability and increased weather unpredictability(p.137)
- • Regulatory compliance complexity requiring substantial capital and operational investments(p.139)
- • Limited funds in underdeveloped states constraining market growth(p.141)
- • Lack of techno-commercial awareness hindering technology adoption and market penetration(p.141)
- • Groundwater depletion concentrating contaminants and threatening long-term water security(p.141)
- • Intense competition from larger domestic and international players(p.170)
- • Risk of regulatory changes affecting project costs and timelines(p.170)
- • Economic volatility impacting government infrastructure spending(p.170)
- • Supply chain disruptions affecting project execution(p.170)
- • Climate change affecting water availability and project feasibility(p.170)
- • Political and social unrest affecting project operations(p.170)
- • Technological disruption and need for continuous innovation(p.170)
- • Significant competitive pressure from larger, better-resourced competitors(p.319)
- • Project cancellation or termination risk by customers(p.319)
- • Payment delays and collection risk from customers(p.319)
- • Qualification criteria dependence for tender eligibility(p.319)
- • Seasonal business fluctuations dependent on monsoon and weather conditions(p.344)
- • Intense competition from larger players with greater resources(p.344)
- • Adverse changes in government policies and delays in contract awards(p.345)
- • Working capital pressure from project-based revenue model(p.337)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sowbhagyamma | Promoter | 35.00% | — |
| Sujith T R | Promoter | 1.02% | — |
| C Mruthyunjaya Swamy | Promoter | 25.00% | — |
| Hema H M | Promoter | 35.00% | — |
| Sowbhagyamma | Promoter | 35.00% | 25.17% |
| Sujith T R | Promoter | 1.02% | 0.73% |
| C Mruthyunjaya Swamy | Promoter | 25.00% | 17.98% |
| Hema H M | Promoter | 35.00% | 25.17% |
| C Mruthyunjaya Swamy | Promoter | — | — |
| Sowbhagyamma | Promoter | — | — |
| Sujith T R | Promoter | — | — |
| C Mruthyunjaya Swamy | Promoter | — | — |
| Hema H M | Promoter | — | — |
| Sowbhagyamma | Promoter | 35.00% | — |
| Hema H M | Promoter | 35.00% | — |
| C Mrutyunjaya Swamy | Promoter | 25.00% | — |
| Sujith T R | Promoter | 1.02% | — |
| C Mruthyunjaya Swamy | Promoter | — | — |
| H M Hema | Promoter | — | — |
| Sowbhagyamma | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.