Denta Water and Infra Solutions Limited is set to launch its initial public offering (IPO) from January 22 to January 24, 2025, aiming to raise ₹220.50 crores through a fresh issue of equity shares. The company specializes in water management infrastructure projects, particularly groundwater recharge initiatives, and has successfully completed 27 projects to date. Denta Water plans to utilize the proceeds from the IPO to meet its working capital requirements and for general corporate purposes. With a strong order book valued at ₹984.23 crores and a growing demand for water infrastructure solutions, Denta Water presents an attractive investment opportunity for those looking to engage in the expanding water management sector in India.
₹70
₹294
₹325.00
Expert Opinions
Market sentiment surrounding the Denta Water IPO is optimistic, bolstered by increasing awareness and investment in water management and infrastructure solutions, particularly in light of rising environmental concerns. Denta Water has established itself as a key player in groundwater recharge and water management projects, having successfully completed 27 projects and currently managing an impressive order book valued at ₹984.23 crores. However, potential risks include regulatory challenges and fluctuations in project funding, which could impact operational timelines and profitability.
The IPO’s valuation reflects a return on net worth (RoNW) of approximately 36.36%, indicating a fair entry point for investors based on projected earnings and growth potential. From a long-term investment perspective, Denta Water is well-positioned to benefit from the growing demand for sustainable water solutions.
Investor Considerations
Investors considering the Denta Water IPO should evaluate several critical factors. Company performance and fundamentals indicate a strong operational track record, with successful execution of numerous water management projects that enhance its reputation in the industry. The sector outlook is favorable, as the Indian water and wastewater treatment market is projected to grow at a CAGR of 6.08% from FY 2023 to FY 2030, driven by increasing investments in infrastructure.
The IPO valuation presents an earnings per share (EPS) of approximately ₹31.11, suggesting a reasonable entry point for investors. Growth prospects remain robust, with plans to expand project capabilities and participate in government initiatives like the Jal Jeevan Mission. However, potential risk factors include regulatory challenges and competition from established players in the sector. A long-term investment horizon is advisable, as Denta Water aims to leverage favorable market trends for sustained growth in the water management industry.
| Date | GMP | Trend |
|---|---|---|
| 28 Jan 2025 10.53 | ₹70 | Down |
| 27 Jan 2025 13.24 | ₹100 | Down |
| 25 Jan 2025 11.36 | ₹120 | --- |
| 24 Jan 2025 12.28 | ₹120 | Down |
| 23 Jan 2025 11.29 | ₹140 | Down |
| 22 Jan 2025 11.04 | ₹160 | --- |
| 21 Jan 2025 11.02 | ₹160 | Up |
| 20 Jan 2025 11.53 | ₹145 | Up |
| 18 Jan 2025 11.32 | ₹45 | Up |
| 17 Jan 2025 15.27 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Denta Water and Infra Solutions’ listing performance. While the GMP of ₹70 predicted a premium of 23.81% over the issue price, the stock delivered a lower gain of 10.54%. With a prediction error of 10.71%, the GMP correctly predicted the positive listing direction but overestimated the magnitude of gains.
Denta Water IPO Current GMP is ₹70.
Denta Water IPO Expected Returns is 23.81%.
Denta Water IPO estimated listing price is ₹364.