Apex Ecotech IPO Listing: Stock lists at 90% premium on NSE Emerge

Apex Ecotech IPO Listing

Apex Ecotech IPO Listing: HUL-PepsiCo Supplier Creates a Stir, Shares of ₹173 Doubled on the First Day

Apex Ecotech, a prominent water treatment services provider catering to major brands like Hindustan Unilever (HUL), PepsiCo, and others, has made a powerful debut on the NSE SME platform, following its ₹25.54 crore initial public offering (IPO).

The IPO opened for subscription between November 27-29, and investors saw substantial gains from the outset.

The shares, which were offered at ₹73, made an impressive entry by listing at ₹138.70 on the first day of trading, marking a 90% listing gain.

This was only the beginning, as the share price surged to ₹145.60 by the end of the day, hitting the upper circuit limit, and effectively doubling investors’ money within a few hours of market activity.

Apex Ecotech IPO: A Phenomenal Response from Investors

Apex Ecotech’s ₹25.54 crore IPO has been met with an overwhelmingly positive response, signaling strong market confidence in the company.

The offering was subscribed an astounding 457.07 times, with investors clamoring to get a piece of the action.

This remarkable level of oversubscription highlights the growing interest in companies that provide essential services like water treatment, which are gaining increasing importance across industries due to environmental concerns and the global water crisis.

Breaking down the subscription numbers, the portion allocated to Qualified Institutional Buyers (QIBs) was subscribed 136.69 times, reflecting a strong appetite from institutional investors.

The Non-Institutional Investors (NII) category saw an even more impressive response, with the segment being oversubscribed 1,179.62 times. Retail investors, who make up a significant portion of IPO subscribers, also showed tremendous enthusiasm, with their portion being oversubscribed 329.65 times.

Under the IPO, Apex Ecotech issued 34,99,200 new shares with a face value of ₹10. The shares were priced at ₹73 each, offering an attractive entry point for investors considering the company’s growth prospects.

The funds raised through this IPO will primarily be used to meet the company’s working capital requirements, support general corporate purposes, and cover expenses related to the issue itself.

Apex Ecotech’s Business and Growth Prospects

Founded in 2009, Apex Ecotech operates in the water treatment and wastewater recycling industry, providing sustainable solutions to a variety of industrial and commercial sectors.

The company specializes in water and wastewater treatment, water recycling, and reuse solutions, serving some of India’s largest and most respected organizations.

Its client base includes major corporations such as Aditya Birla Group, Ashok Leyland, Haldiram, Hindustan Unilever (HUL), Jubilant, Lenskart, Mahindra & Mahindra (M&M), PepsiCo, Piramal Pharma, and Honda Cars, among others.

The company’s services are integral to the operations of these large businesses, which rely on effective water management systems for their manufacturing processes and environmental compliance.

With increasing regulatory pressure on industries to reduce their environmental impact and adopt more sustainable practices, the demand for Apex Ecotech’s services is expected to rise.

Apex Ecotech’s consistent growth is reflected in its financial performance over the past few years. While the company faced challenges in FY 2022, posting a net loss of ₹65.86 crore, it rebounded strongly in the subsequent year.

In FY 2023, Apex Ecotech reported a net profit of ₹3.52 crore, a remarkable recovery. The company’s growth trajectory continued into FY 2024, with a net profit of ₹6.63 crore.

During this period, Apex Ecotech’s revenue grew at an impressive compound annual growth rate (CAGR) of over 63%, reaching ₹53.46 crore by FY 2024. This strong performance underscores the company’s resilience and ability to scale its business.

Financial Health and Market Position

In the first half of FY 2024-25 (April to September), Apex Ecotech continued its positive momentum, reporting a net profit of ₹1.55 crore on revenues of ₹21.83 crore.

These numbers reflect the company’s ability to maintain consistent growth, even during periods of market uncertainty.

The company’s financial performance is a testament to its solid business model and its ability to generate value in a highly competitive and evolving industry.

Apex Ecotech is well-positioned within the water treatment sector, which has seen significant growth due to increasing industrial demand and heightened awareness of environmental issues.

As industries worldwide face rising water scarcity concerns, companies like Apex Ecotech, which specialize in water conservation and recycling, stand to benefit from long-term, sustainable business opportunities.

Apex Ecotech’s focus on cutting-edge technologies and its reputation for delivering efficient and cost-effective solutions further strengthens its competitive advantage in the market.

Additionally, the company’s strategic partnerships with large multinational corporations and domestic industry leaders such as HUL and PepsiCo position it as a trusted player in the industry.

These relationships not only provide a steady stream of business but also enhance Apex Ecotech’s credibility and visibility within the water treatment and environmental services sector.

Future Outlook: Strong Growth Potential

The outlook for Apex Ecotech is highly promising, driven by several key factors. First, the company operates in a sector that is witnessing rapid growth, with increasing demand for water treatment solutions and sustainability initiatives.

The global water crisis, which is expected to worsen in the coming decades, has made water treatment and recycling solutions a critical priority for both governments and industries worldwide.

As businesses across sectors face increasing pressure to adopt eco-friendly practices, Apex Ecotech’s water management services are set to play an essential role in their operations.

Furthermore, Apex Ecotech’s focus on technology-driven solutions positions it well to capitalize on the growing trend toward automation and digitization in the water treatment industry.

The company’s ability to offer cutting-edge, cost-effective solutions to its clients will be a significant driver of growth as more industries prioritize sustainability.

With its strong financial performance, growing market presence, and increasing demand for its services,

Apex Ecotech is poised for continued success in the coming years. The IPO’s strong debut reflects investor confidence in the company’s future and its potential to deliver substantial returns.

Final Remarks

The remarkable debut of Apex Ecotech’s IPO underscores the growing investor interest in companies that provide vital environmental services, particularly in the area of water treatment and recycling.

With a strong client base, impressive financial growth, and a promising outlook, Apex Ecotech is well-positioned to capitalize on the increasing demand for sustainable water management solutions.

The IPO’s success not only highlights the company’s potential but also signals a growing recognition of the importance of water conservation and sustainability in today’s business landscape.

Investors who participated in the IPO are already seeing significant gains, and the future looks bright for both Apex Ecotech and its stakeholders.