Concord Enviro Systems IPO listing today. Here’s what GMP, experts signal ahead of stock market debut

Concord Enviro Systems listing today: The shares of Concord Enviro Systems are set to make their stock market debut today (27 December) after the company witnessed a decent response to its initial public offering (IPO).

Concord Enviro Systems shares are set to list on both BSE and NSE, along with four other mainboard issues – DAM Capital, Mamata Machinery, Transrail Lighting, and Sanathan Textiles.

The IPO of Concord Enviro Systems was open for subscription from 19 December to 23 December in the price band of ₹665 to ₹701 per share. Concord Enviro Systems IPO, worth ₹500 crore, was a mix of fresh issue of ₹0.25 crore shares worth ₹175 crores and offer for sale (OFS) of 0.46 crore shares totalling ₹325.33 crore.

Following the three-day bidding process, Concord Enviro Systems IPO was subscribed 10.67 times. The qualified institutional buyer quota was booked 17.32 times, the non-institutional investor quota 14.2 and the retail quota 5.56 times.

Concord Enviro Systems shares will be a part of a Special Pre-open Session (SPOS) on Friday, 27 December, and will begin trading at 10:00 am on the stock exchanges.

Concord Enviro Systems shares listing today is likely to be decent according to analysts and grey market trends. They see the stock debuting at a premium of nearly 15-20 per cent.

Concord Enviro Systems IPO GMP

Concord Enviro Systems IPO GMP today is ₹135 per share. This means shares of Concord Enviro Systems are trading ₹135 higher than their issue price in the grey market. Considering the current GMP and the IPO price of ₹701, the company’s shares could list at ₹836, a premium of 19 per cent.

Concord Enviro Systems Listing Expectations

While analysts anticipate a decent listing for Concord Enviro Systems shares today, they are cautious about the company’s outlook going forward.

According to Arun Kejriwal, Founder of Kejriwal Research and Investment Services, Concord allottees may see around 15 per cent listing gain on their money as he sees Concord Enviro Systems IPO listing price in the ₹795 to ₹810 range.

“Concord Enviro Systems is in the water treatment business but the scale and business volume are challenges that may hit its sustained growth. However, the company has delivered good business volume and its balance sheet is also in a sound condition,” he added.

Concord Enviro Systems’ revenue increased by 46% year-on-year (YoY) to ₹627.68 crore in the financial year 2024 while its profit after tax (PAT) surged a whopping 655% YoY to ₹41.44 crore. However, the company reported negative cash flows of ₹42 crore in FY24, which concerned analysts.

“We remain cautious of the issue given its inconsistent financial performance, which is further underscored by the negative operating cash flow in FY24. Additional concerns arise from the aggressive dilution of promoter holdings post-listing,” said Sagar Shetty, a research analyst at StoxBox. He expects the IPO to list at an 8 per cent premium.

Shetty recommended avoiding investing in the issue and instead monitoring the company’s performance in the upcoming quarters. For those who have been allocated shares, he advised booking profits if there is a premium listing.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.