Denta Water, a company specialising in the water treatment sector, has opened its IPO with a total size of Rs 220.50 crore today , January 22. As of the first day of bidding, the IPO made waves in the grey market, garnering the attention of many investors and analysts.

Let’s take a look at the latest GMP, risk factors, subscription status and other key details of this mainboard issue.

Denta Water IPO: GMP trends

In the grey market, shares of Denta Water are making a significant buzz. Shares of Denta Water are currently trading at a premium of Rs 165, indicating a listing price that could be as high as Rs 459. As per the latest trend, this suggests a 56.12% upside from the top end of the IPO’s price band of Rs 294 per share.

However, it is crucial to note that this is not the actual or official listing price and may fluctuate based on the market sentiment.

Denta Water IPO: Key risks factors

As per the DRHP filing, the company noted some of the risk factors in the disclosure which includes-

Denta Water’s current order book, which accounts for future revenue projections, may not translate fully into actual income. There is a possibility that some orders could be delayed, modified, or cancelled, which would negatively impact the company’s financials.

“69.68% of our Order Book as of October 31, 2023, is contributed by government clients, and we rely substantially on our government clients for our revenues,” added the company in the filing.

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Additionally, the company’s operations are limited to Karnataka, making it vulnerable to localised risks, including social unrest or natural calamities, which could significantly disrupt business and operations.

Furthermore, the company in the DRHP said, “Delays in completion of our current and future projects and time overrun could have adverse effects on our business prospects and results of operations.”

Denta Water IPO: Subscription numbers

On the first day of bidding, so far, the IPO has been subscribed 7.32 times, with retail investors bidding 8.39 times. The Non-Institutional Investor (NII) category saw a subscription rate of 12.51 times, while the Qualified Institutional Buyer (QIB) category was subscribed 1.55 times till now.

Denta Water IPO: Price band and other details

The Denta Water IPO is priced in the range of Rs 279 to Rs 294 per share. For retail investors, the minimum investment is Rs 14,700, which corresponds to a minimum lot size of 50 shares. The company also has different investment tiers for Small and High Net-Worth Individuals (sNII and bNII). While the sNII minimum lot size is 700 shares (Rs 2,05,800), the bNII investment requires a substantial 3,450 shares (Rs 10,14,300).

Denta Water IPO is a fresh issue of 0.75 crore shares. The IPO will conclude its bidding window on January 24.

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Further, the allotment of shares are set to be finalised on January 27, with the tentative listing date set for January 29, on both BSE and NSE.

For the Denta Water IPO, SMC Capitals takes on the role of the book running lead manager. Meanwhile, Integrated Registry Management Services serves as the registrar, responsible for managing the allocation of shares and handling the post-issue activities.