Concord Enviro Systems files fresh IPO papers with Sebi

Concord Enviro Systems, an environmental engineering solutions firm, has filed fresh preliminary papers with Sebi to raise funds through an Initial Public Offering (IPO). The proposed IPO comprises fresh issuance of equity shares worth Rs 192.3 crore and an Offer For Sale (OFS) of 51.94 lakh equity shares by promoters and an investor, according to the Draft Red Herring Prospectus (DRHP) filed on Tuesday.

Those selling shares in the OFS are promoters --Prayas Goel and Prerak Goel, promoter groups -- Namrata Goel, Nidhi Goel, and Pushpa Goel-- and investor AF Holdings. Proceeds from the fresh issue to the tune of Rs 25 crore will be invested in Concord Enviro FZE (CEF) for setting up a new assembly unit for water treatment systems, and Rs 10.505 crore will be invested in Rochem Separation Systems (India) Private Ltd to expand its manufacturing facilities and support activities.

Additionally, the company will invest Rs 50 crore in CEF for the payment of debt, Rs 33.5 crore will be allocated for technology and growth initiatives to access new markets, Rs 20 crore will be used to fund CEF's working capital requirements, Rs 10 crore will go towards Roserve Enviro Private Limited to expand its "pay per use/pay as you treat" business Also, Rs 3.228 crore will be allocated for the company's capital expenditure on plant and machinery and a portion of the proceeds will be used for general corporate purposes.

This is the company's second attempt to go public. Before this, the company had filed draft IPO papers with Sebi in 2022 and had received its clearance to float the public issue. However, the company didn't launch its maiden public issue. Concord Enviro Systems is an integrated solutions provider for industrial wastewater reuse and zero liquid discharge solutions, with an in-house position across the value chain.

The company's reach extends to diverse regions with exports to countries in North America, Latin America, Africa, the Middle East, and Southeast Asia, serving 377 customers worldwide as of March 31, 2024. This is the company's second attempt to go public. Before this, the company had filed draft IPO papers with Sebi in 2022 and had received its clearance to float the public issue. However, the company didn't launch its maiden public issue. Motilal Oswal Investment Advisors and Equirus Capital are the book-running lead managers to the issue.