January 22, 2025 – Denta Water, a Karnataka-based water treatment company, opened its ₹220.50 crore initial public offering (IPO) on Monday, attracting strong interest from investors. The IPO was subscribed 7.32 times on the first day, with retail investors leading at 8.39 times, followed by Non-Institutional Investors (NII) at 12.51 times and Qualified Institutional Buyers (QIB) at 1.55 times.
In the grey market, shares of Denta Water are trading at a premium of ₹165, signaling a potential listing price of ₹459—56.12% higher than the IPO’s upper price band of ₹294 per share. However, market analysts caution that grey market premiums are unofficial and subject to fluctuations.
The IPO price band is set between ₹279 and ₹294 per share, with retail investors required to invest a minimum of ₹14,700 for 50 shares. Small Non-Institutional Investors (sNII) and large Non-Institutional Investors (bNII) need to bid for 700 shares (₹2,05,800) and 3,450 shares (₹10,14,300), respectively.
Denta Water is offering a fresh issue of 0.75 crore shares, with the IPO bidding window closing on January 24. The allotment of shares will be finalized on January 27, and the listing is tentatively scheduled for January 29 on the BSE and NSE. According to its Draft Red Herring Prospectus (DRHP), the company flagged potential risks, including its dependence on government clients, which account for 69.68% of its order book as of October 31, 2023. It warned that delays, cancellations, or modifications in these orders could impact financial performance.
Further, Denta Water’s operations are confined to Karnataka, exposing it to localized risks such as social unrest and natural disasters. Delays in project completion and time overruns could also adversely affect its business prospects. SMC Capitals is managing the IPO as the book running lead manager, while Integrated Registry Management Services serves as the registrar.
