Denta Water IPO: Details, Subscription Update, and Investment Insights

Mumbai, India — Denta Water and Infra Solutions Limited has launched its Initial Public Offering (IPO) between January 22, 2025, and January 24, 2025, aiming to raise up to ₹220.50 crore through the issuance of 75,00,000 shares. The IPO, which is priced in the range of ₹279 to ₹294 per share, will list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on January 29, 2025.

IPO Overview:

• Face Value: ₹10 per share
• Total Issue Size: ₹220.50 crore (75,00,000 shares)
• Price Band: ₹279 to ₹294 per share
• Lot Size: 50 Shares

Share Allocation:

The IPO includes shares reserved for different categories of investors:

• Qualified Institutional Buyers (QIBs): 20% of the shares (15,00,000 shares)
• Non-Institutional Investors (NIIs): 15% of the shares (11,25,000 shares)
  • Sub-categorized into bNII (bids above ₹10 lakh) and sNII (bids below ₹10 lakh)
• Retail Investors: 35% of the shares (26,25,000 shares)
• Anchor Investors: 30% of the shares (22,50,000 shares)

Subscription Details:

As of January 24, 2025, the Denta Water IPO has seen massive demand, with an overall subscription of 221.54 times. Subscription details are as follows:

• Qualified Institutional Buyers (QIBs): Subscribed 236.94 times
• Non-Institutional Investors (NIIs): Subscribed 507.07 times
  • bNII: 556.49 times
  • sNII: 408.23 times
• Retail Investors: Subscribed 90.38 times

Promoter Information:

The promoters of Denta Water and Infra Solutions Limited include Sowbhagyamma, Sujith TR, C Mruthyunjaya Swamy, and Hema HM.

• Pre-Issue Shareholding: 100%
• Post-Issue Shareholding: 71.91%

About Denta Water and Infra Solutions Limited:

Incorporated in 2016, Denta Water and Infra Solutions Limited specializes in water management infrastructure projects, focusing on groundwater recharge through recycled water. With expertise in engineering, procurement, and construction (EPC) services, the company has successfully executed major projects such as Byrapura, Hiremagaluru LIS, and KC Valley, contributing to Bengaluru’s wastewater management initiatives. The company also owns 98 acres of land in Madikeri, Karnataka, producing coffee, pepper, and cardamom, along with a beach resort in Udupi.

Company Financials:

For the period ending September 30, 2024, Denta Water reported:

• Revenue: ₹98.51 crore
• Profit After Tax (PAT): ₹24.2 crore
• Net Worth: ₹188.46 crore

Use of Proceeds:

The company plans to use the net proceeds from the IPO for working capital requirements and general corporate purposes.

IPO Review:

Industry experts suggest that Denta Water’s steady growth and niche focus on groundwater recharging projects make it an attractive investment opportunity for well-informed, medium-to-long-term investors. The company boasts a robust order book and significant growth in its top and bottom lines, with over 95% of revenue from groundwater-related contracts.

IPO Timeline:

• IPO Open Date: January 22, 2025
• IPO Close Date: January 24, 2025
• Basis of Allotment: January 27, 2025
• Initiation of Refunds: January 28, 2025
• Credit of Shares to Demat Accounts: January 28, 2025
• Listing Date: January 29, 2025

With its IPO generating significant investor interest, Denta Water’s market capitalization is estimated at ₹784.98 crore, reflecting its growing role in India’s water management sector.