The Denta Water IPO has been making waves in the stock market with its impressive Grey Market Premium (GMP) performance. Investors are buzzing as the GMP soared by 56%, and the IPO has already been subscribed two times. In this article, we’ll break down everything you need to know about the Denta Water IPO in a simplified and easy-to-understand manner.
What Is the Denta Water IPO?
Denta Water is a leading company in the water purification and treatment sector. The company specializes in innovative water solutions, providing cutting-edge technologies to ensure safe and clean drinking water. The IPO launch aims to raise capital for business expansion, debt repayment, and other corporate needs.
Key Details About the Denta Water IPO
1. IPO Dates:
- Open Date: January 22, 2025
- Close Date: January 24, 2025.
- Allotment Date: January 27, 2025
- Listing Date: Wednesday, January 29, 2025
2. Price Band:
The IPO is priced at Rs 279 to Rs 294 per share.
3. Lot Size:
Investors can bid in lots of 50 shares. The minimum lot size for investors is 50. Thus, the minimum amount that a retail investor needs to buy one lot of the IPO is Rs 14,700 (50 x 294).
- non-institutional investors (NIIs) – 14 lots (700 shares)
- qualified institutional investors (QIBs) – 69 lots (3,450 shares)
4. Issue Size:
The total issue size is 7.5 million shares, The issue, which is a book-built IPO, aims to raise Rs 220.5 crore through three days of bidding. Denta Water IPO will close for subscription on January 24, 2025.
What Is Grey Market Premium (GMP)?
The Grey Market Premium (GMP) is an informal indicator of how the IPO might perform on its listing day. It reflects the demand and supply dynamics in the unregulated grey market, where shares are traded unofficially before their listing on the stock exchange.
Denta Water IPO GMP Performance
The company’s shares have been maintaining a stable grey market premium (GMP) of ₹165 per share since last week. As of 8:50 AM on January 22, 2025, the Denta Water IPO GMP remains at ₹165 per share. This suggests a potential listing gain of about 56% based on the upper price band.
The GMP of the Denta Water IPO has been a hot topic among investors. Here are the key highlights:
- Initial GMP: ₹165 per share
- Current GMP: ₹165 per share (up by 56%)
- Implication: The significant rise in GMP suggests strong investor interest and optimism about the company’s prospects.
Subscription Status
The Denta Water IPO has attracted strong interest from investors in the primary market. Within just half an hour of opening, the IPO was subscribed 1.8 times. The retail investor category saw a subscription of 2.78 times, while the Non-Institutional Investors (NII) segment was subscribed 3 times.
- 1. Retail Investors: High demand, indicating strong confidence in the IPO.
- 2. Qualified Institutional Buyers (QIBs): Steady participation, showcasing the appeal of the IPO among institutional players.
- 3. Non-Institutional Investors (NIIs): Competitive bids, contributing to the overall oversubscription.
Read also:
Reasons for High Demand
Analysts highlight Denta Water’s key projects, including the Byrapura and Hiremagaluru LIS Project, Karagada LIS Project, and the first phase of the KC Valley project.
Since its inception in 2016, Denta Water has successfully completed 32 water management infrastructure projects for the Government of Karnataka (GoK).
As of November 30, 2024, the company has secured contracts in GWR projects valued at:
- ₹774 crore as a consortium partner,
- ₹46.99 crore as an independent contractor, and
- ₹465.72 crore as sub-contracts.
Several factors are driving the demand for the Denta Water IPO:
- 1. Industry Growth: The water treatment sector is growing rapidly due to increasing environmental concerns and the need for clean water solutions.
- 2. Strong Financials: Denta Water has shown consistent revenue growth, with robust profit margins.
- 3. Innovative Technology: The company’s advanced technologies give it a competitive edge.
- 4. Positive Market Sentiment: The grey market activity reflects high expectations for the IPO’s success.
Read also: Yes bank share price: What You Need To Know Before Investing Quickly
How to Check Denta Water IPO Allotment Status
If you’ve applied for the Denta Water IPO, here’s how you can check the allotment status:
1. Through the Registrar’s Website:
- – Visit the official registrar website (e.g., Link 1 or KFin Technologies).
- – Enter your PAN, application number, or DP/Client ID.
- – Check your allotment status.
2. On Stock Exchange Websites:
3. Via SMS or Email:
Investors who provided their contact details during the IPO application process will receive updates via SMS or email.
Steps to Apply for the Denta Water IPO
If you’re still considering applying for the IPO, here’s a step-by-step guide:
- 1. Choose a Brokerage Account: Open a Demat and trading account with a registered broker.
- 2. Log In to Your Account: Use your credentials to access the IPO application section.
- 3. Select Denta Water IPO: Choose the IPO from the available options.
- 4. Enter Bid Details: Input the quantity and price within the specified range.
- 5. Submit Your Application: Complete the process and authorize the payment.
More Read
Grey Market Conditions and Trends
The grey market is currently buzzing with activity due to the Denta Water IPO. Key trends include:
- High Premiums: The GMP rise suggests strong confidence in the IPO’s listing-day performance.
- Active Trading: Unofficial trading volumes are significant, reflecting investor enthusiasm.
- Sectoral Boost: The water treatment industry’s growth prospects are driving grey market interest.
Should You Invest in the Denta Water IPO?
Here’s a simplified breakdown of the pros and cons:
Pros:
- 1. Strong Financials: The company’s performance metrics are impressive.
- 2. Growing Industry: High demand for water treatment solutions ensures long-term growth potential.
- 3. Market Optimism: High GMP and oversubscription indicate positive sentiment.
Cons:
- 1. Market Volatility: IPOs are subject to market risks, especially in fluctuating economic conditions.
- 2. Valuation Concerns: Ensure the price band justifies the company’s valuation.
#Expert Opinions
Analysts have shared mixed reviews about the Denta Water IPO:
- Bullish Experts: Highlight the company’s innovation and market potential.
- Cautious Analysts: Advise investors to consider valuation and market risks before applying.
#Denta Water IPO: Analyst Recommendations
- Canara Bank Securities (Neutral): Strong growth potential with an asset-light model, but high dependency on government clients (63.4% in FY24) and project delays raise concerns.
- SBI Securities (Subscribe): Strong financials with revenue CAGR of 41.3% (FY22-FY24) and a P/E of 13.1x. Robust order book and industry growth make it a good investment.
- BP Equities (Long-Term Subscribe): Debt-free and asset-light model with diversification into railways and highways. Attractive at a P/E of 9.5x for long-term growth.
- Ventura Securities (Subscribe): Expertise in groundwater projects and a strong pipeline highlight execution capabilities and future growth potential.
- SMIFS Ltd (Subscribe): Strategic presence in Karnataka and planned expansion into other states position Denta to capture growing water management opportunities.
#Conclusion
The Denta Water IPO is undoubtedly one of the most talked-about public offerings, with a 56% jump in its Grey Market Premium and 2x subscription. Its strong fundamentals, innovative technology, and industry growth make it an attractive option for investors. However, as with any investment, careful analysis and due diligence are crucial.
Keep an eye on the grey market trends and official updates to make an informed decision. Whether you’re a retail investor or an institutional player, the Denta Water IPO offers an exciting opportunity to participate in a growing industry.
Let us know in the comments if you’ve applied for the Denta Water IPO or plan to!
