Envirotech Systems
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Sep 2024 – 19 Sep 2024
- Listing date
- 24 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹56 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹30.24 Cr
- Market cap at offer price
- ₹105 Cr
- Promoter holding
- 96.47% → 68.75% pre-issue → post-issue
- ISIN
- INE0SUH01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Share India Capital Services Pvt.Ltd.
- Registered office
- A-29, Block-A, Shyam Vihar Phase-I, New Delhi
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 | 14,06,000 | — | — |
| Market maker | 7,02,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹56
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 16,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,08,000 |
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 (₹) | 8.54 | 6.08 |
| P/E (×) | 6.56 | 9.21 |
| Price to book (×) | 3.83 | — |
| Market cap | — | ₹105 Cr |
Key performance indicators
- Return on net worth
- 58.29%
- ROCE
- 62.43%
- PAT margin
- 24.72%
- NAV per share
- ₹14.64
- Price to book
- 3.83
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Envirotech Systems
Envirotech Systems Limited was originally incorporated as 'Envirotech Gensets Private Limited' on February 09, 2007, and subsequently renamed to 'Envirotech Systems Private Limited' on June 10, 2009. It was converted to a public limited company on June 03, 2022, and is now known as 'Envirotech Systems Limited'. The company is a leading acoustic engineering organization with over 98 employees and a network of technical experts. It specializes in noise measurement and control for industrial and commercial applications, offering cost-effective solutions for various acoustical challenges. The company's comprehensive services encompass research, cost-benefit analysis, and engineering solutions to provide efficient noise abatement solutions across industrial, commercial, architectural, and environmental markets.
Company Analysis
from RHPEnvirotech Systems Limited is a leading acoustic engineering organization specializing in noise measurement and control, offering innovative acoustical product design and manufacturing for industrial, commercial, architectural, and environmental markets.
Envirotech Systems Limited was originally incorporated as 'Envirotech Gensets Private Limited' on February 09, 2007, and subsequently renamed to 'Envirotech Systems Private Limited' on June 10, 2009. It was converted to a public limited company on June 03, 2022, and is now known as 'Envirotech Systems Limited'. The company is a leading acoustic engineering organization with over 98 employees and a network of technical experts. It specializes in noise measurement and control for industrial and commercial applications, offering cost-effective solutions for various acoustical challenges. The company's comprehensive services encompass research, cost-benefit analysis, and engineering solutions to provide efficient noise abatement solutions across industrial, commercial, architectural, and environmental markets.
Objects of the Issue
- Purchase of Land to set up Factory Upto ₹1200.00 Lakhs p.23
- To Meet Working Capital Requirement ₹800.00 Lakhs p.23
- General Corporate Expenses [●] p.23
- To Meet the Issue Expenses [●] p.23
- Purchase Land and Building for setting up factory Up to ₹1,200.00 lakhs p.90
- Funding of working capital requirements of the Company ₹800.00 lakhs p.90
- General Corporate Expenses p.90
- Issue Expenses p.90
- Not specified in this part of the document
Issue Structure
- Total Issue
- Upto 54,00,000 Equity Shares aggregating to [●] Lakhs
- Fresh Issue
- 54,00,000 Equity Shares aggregating to [●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹53 - ₹56 per Equity Share
- Lot Size
- 2,000 Equity Shares and in multiples of 2,000 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
Envirotech Systems Limited generates revenue through the design, manufacture, and sale of acoustic insulation machines and sound control/reduction equipment to various industry segments including construction, real estate, and infrastructure. The company also provides acoustic engineering services including noise measurement, testing, and consulting services. The company sells its products and services to various industry segments at different locations in India.
Business Segments
SWOT Analysis
- • Leading acoustic engineering organization with specialized capabilities(p.23)
- • Established market presence since 2007 with technical expertise(p.23)
- • Strong revenue growth trajectory(p.23)
- • Positive profitability with strong PAT growth(p.23)
- • Strong revenue and profitability growth trajectory(p.52)
- • High and improving return on equity and capital employed(p.102)
- • Substantial improvement in EBITDA margin(p.102)
- • Strong promoter ownership and commitment(p.85)
- • Early entry into acoustic insulation sector with distinct competitive advantage(p.140)
- • Promoter with 20+ years experience in acoustic insulation industry(p.140)
- • Experienced technical team with diverse project execution capabilities(p.140)
- • Strong R&D commitment and continuous product development focus(p.140)
- • Strategic partnerships with industry experts enhancing technical acumen(p.140)
- • Rigorous product testing and government agency certifications(p.140)
- • Strong customer relationships spanning various segments(p.141)
- • Qualified team excelling in understanding customer requirements(p.141)
- • Rapid revenue growth driven by increased business activity and capacity utilization(p.223)
- • Strong profitability improvement with 344% increase in PAT year-over-year(p.223)
- • High EBITDA margins demonstrating operational efficiency(p.219)
- • Improved current ratio indicating strong liquidity position(p.214)
- • Positive return on equity and capital employed showing efficient capital deployment(p.214)
- • Reduced debt-to-equity ratio from 1.38 to 0.46 improving financial health(p.214)
- • High customer concentration risk(p.37)
- • High supplier concentration and dependence(p.30)
- • Significant working capital requirements(p.33)
- • Lack of gratuity provision in financial statements(p.31)
- • Manufacturing facility not fully automated(p.37)
- • Rented registered office with limited tenure(p.30)
- • Trademark registration objections(p.31)
- • Compliance delays in statutory filings(p.35)
- • Unsecured loans repayable on demand(p.34)
- • Pledged property contingency risk(p.29)
- • High customer concentration risk(p.103)
- • Significant increase in working capital requirements(p.93)
- • Factory acquisition encumbered with debt(p.92)
- • Capital limitations constraining growth potential(p.140)
- • Lack of nationwide physical presence limiting market reach(p.140)
- • Infrastructure limitations for handling very large quantities or high-value projects(p.140)
- • High dependence on small number of customers creating concentration risk(p.232)
- • Significant increase in finance costs straining profitability(p.222)
- • Rising employee benefit expenses with 29.93% increase year-over-year(p.222)
- • Material litigation with Income Tax Department with outstanding demands(p.240)
- • High inventory build-up with 728% increase in inventory from FY23 to FY24(p.190)
- • Significant increase in trade receivables raising working capital concerns(p.202)
- • Robust market growth in NVH testing(p.23)
- • Growing acoustic insulation industry(p.23)
- • Expansion into new markets and sectors(p.23)
- • Capital expansion to increase manufacturing capacity(p.24)
- • Operational scaling through IPO proceeds(p.36)
- • Expansion into growing acoustic insulation and noise control markets(p.117)
- • Strong growth in Indian automotive and aerospace sectors driving NVH testing demand(p.120)
- • Capacity expansion through factory acquisition(p.92)
- • Government focus on noise control and environmental regulations(p.117)
- • Growing awareness of noise pollution expanding acoustic insulation market(p.141)
- • Government focus on infrastructure projects driving demand(p.141)
- • Industry shift from unorganized to organized players(p.141)
- • Huge infrastructure investments lined up through 2030(p.122)
- • Growing EV and hybrid vehicle adoption requiring specialized NVH testing(p.122)
- • Advanced technology adoption in acoustic testing and measurement(p.122)
- • Southern India emerging as major hub with highest growth prospects(p.124)
- • Acoustic engineering market expansion for industrial and commercial applications(p.218)
- • Broader product portfolio in acoustical solutions across multiple sectors(p.218)
- • Geographic expansion with network of technical experts(p.218)
- • Growing environmental and regulatory compliance demand for noise control(p.218)
- • Capacity utilization improvement demonstrating scaling potential(p.228)
- • Economic slowdown affecting demand(p.42)
- • Intense competition from new market entrants(p.36)
- • Volatility in raw material prices(p.34)
- • Labour-intensive operations and wage inflation risk(p.37)
- • Regulatory and compliance changes(p.43)
- • Technology obsolescence risk(p.35)
- • Disruption from pandemics or infectious diseases(p.43)
- • Natural disasters and external disruptions(p.45)
- • Foreign exchange volatility(p.46)
- • Currency convertibility restrictions(p.46)
- • Exposure to cyclical automotive and construction industries(p.117)
- • Global economic slowdown and merchandise trade weakness(p.114)
- • Vulnerability to raw material and commodity price fluctuations(p.95)
- • Dependence on timely completion of land acquisition and factory setup(p.92)
- • Price undercutting by inexperienced local competitors(p.141)
- • Infrastructure development impediments affecting product demand(p.141)
- • Adverse macroeconomic events disrupting operations and market stability(p.141)
- • Skill shortage in NVH testing expertise(p.122)
- • Dependence on limited supplier base creating procurement risk(p.232)
- • General economic and business conditions affecting operations(p.218)
- • Rapid technology changes requiring continuous investment to maintain competitiveness(p.219)
- • Competitive pressure in the acoustic engineering market(p.232)
- • Regulatory compliance and licensing requirements across jurisdictions(p.219)
- • Inflation and raw material price volatility impacting cost structure(p.219)
- • Geopolitical and pandemic-related business disruptions(p.219)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Manoj Kumar Gupta | Promoter | 68.32% | 48.68% |
| Ms. Sindhu Gupta | Promoter | 28.16% | 20.06% |
| Mr. Manoj Kumar Gupta | Promoter | 68.32% | 48.68% |
| Ms. Sindhu Gupta | Promoter | 28.16% | 20.06% |
| Manoj Kumar Gupta | Promoter | 68.32% | — |
| Sindhu Gupta | Promoter | 28.16% | — |
| Manoj Kumar Gupta | Promoter | 68.45% | — |
| Sindhu Gupta | Promoter | 28.18% | — |
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.