Denta Water and Infra Solutions Limited IPO
Company Overview
Incorporated in 2016, Denta Water and Infra Solutions Limited is a growing water and infrastructure solutions company. The company specializes in designing, installing, and commissioning water management infrastructure projects, with expertise in groundwater recharge projects.
Services and Expertise
Denta Water provides comprehensive water management services, including preliminary investigations and reconnaissance, feasibility studies, planning and project formulation, field surveys and soil testing, design services, tender bidding consultancy, project management and construction supervision, operation and maintenance guidelines, engineering procurement consultancy, and turnkey projects.
Projects and Experience
As of November 30, 2024, the company has successfully executed 32 water management projects, including 11 as the main contractor, 1 in a joint venture, and 20 as a sub-contractor. Notable projects include Byrapura, Hiremagaluru LIS, and KC Valley, contributing to Bengaluru's wastewater management and supporting the Government's Jal Jeevan Mission. The company also undertakes construction projects on railways and highways. Objectives of the Issue
Working capital requirements
General corporate purposes
Strengths:
Denta Water excels in groundwater recharging and water management, having completed 32 projects for the Karnataka Government. With an in-house team for design, engineering, and project management, the company maintains strong client relationships and leverages an asset-light business model. It also undertakes projects through joint ventures and sub-contracting.
Risks:
The company heavily depends on government contracts, particularly from Karnataka, which are prone to delays, terminations, and regulatory scrutiny. Expansion into new regions poses operational challenges, while restrictive bank covenants limit flexibility. Additionally, past legal proceedings and ongoing SEBI complaints against the promoter raise concerns. Delayed receivables from government contracts further impact cash flow.
Denta Water IPO: Key Details
IPO Dates: 22 to 24 January, 2025
Price Band : ₹279 to ₹294 per share
Lot Size: 50 shares
Total Issue size: ₹220.50 Crores
Retail Quota: 35%
GMP: 45% (For Informational purposes only)
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matters published here are purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. Any reader making decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in the stock market is subject to unpredictable market-related risks. The author has no plans to invest in this offer and also the author does not recommend investing in any offer published on this website.