Greenleaf Envirotech IPO: A Deep Dive into This Eco-Friendly Investment Opportunity
In the dynamic landscape of India's capital markets, Initial Public Offerings (IPOs) often present exciting avenues for investors looking to tap into burgeoning sectors. Today, we turn our attention to an upcoming opportunity in the environmental solutions space: the Greenleaf Envirotech IPO. As the world increasingly prioritizes sustainability, companies like Greenleaf Envirotech are poised for significant growth. This blog post will provide a comprehensive analysis of their public offering, offering insights into the company's business, financials, and the specifics of its IPO, helping you make an informed investment decision.
Unveiling Greenleaf Envirotech: A Glimpse into the Business
Greenleaf Envirotech Limited positions itself as a key player in the environmental services industry. The company offers a suite of integrated solutions, primarily focusing on managing and treating wastewater, a critical service in both industrial and municipal sectors.
Core Business Operations
Greenleaf Envirotech provides comprehensive Engineering, Procurement, and Construction (EPC) along with turnkey solutions for a variety of environmental projects. Their expertise spans:
- Wastewater Treatment Solutions: Specializing in Sewage Treatment Plants (STPs) and Effluent Treatment Plants (ETPs), covering design, engineering, procurement, supply, installation, testing, and ongoing operation & maintenance.
- Environmental Laboratory and Consulting Services: Offering analytical services and expert guidance from their advanced facility in Surat, Gujarat.
- Fire Safety Services: A supplementary offering that diversifies their service portfolio.
With a robust track record, the company has successfully completed 31 turnkey/EPCC projects in the last three fiscal years, amounting to ₹6,616.18 lakhs. As of May 31, 2025, they are actively managing 17 WWT projects and have two upcoming initiatives across various Indian states, highlighting their operational scale and widespread presence.
Key Strengths that Drive Growth
The company's competitive edge is built upon several pillars:
- Integrated Capabilities: Strong in-house project execution, designing, and engineering prowess.
- Accredited Laboratory: An in-house environmental laboratory that enhances service quality and expertise.
- Experienced Leadership: A seasoned promoter and management team guiding strategic direction.
- Solid Order Book: A robust order book valued at ₹5,411.03 lakhs as of May 31, 2025, ensuring future revenue visibility.
- Quality Assurance: Adherence to quality certifications and stringent assurance protocols.
Greenleaf Envirotech IPO at a Glance: Key Offer Details
The Greenleaf Envirotech IPO is set to open for public subscription soon. Here’s a breakdown of the essential details you need to know about this public offering.
Overview of the Public Offering
| Detail | Information |
|---|---|
| Issue Type | Fixed Price Issue |
| Issue Price | ₹136.00 per share |
| Total Issue Size | 16,10,000 shares (Aggregating up to ₹21.90 Crores) |
| Components | Fresh Issue (₹17.82 Crores) & Offer for Sale (₹4.08 Crores) |
| Face Value | ₹10 per share |
| Listing Exchange | NSE SME |
Investment Horizon: IPO Timeline
Understanding the timeline is crucial for planning your application. Here’s the tentative schedule for the Greenleaf Envirotech IPO:
| Event | Date |
|---|---|
| IPO Opening Date | Tuesday, September 30, 2025 |
| IPO Closing Date | Monday, October 6, 2025 |
| Tentative Allotment Date | Tuesday, October 7, 2025 |
| Initiation of Refunds | Wednesday, October 8, 2025 |
| Credit of Shares to Demat Account | Wednesday, October 8, 2025 |
| Tentative Listing Date | Thursday, October 9, 2025 |
(Note: The progress bar above illustrates the typical IPO journey; the "current-stage" highlight is illustrative for the closing date based on the sample data provided.)
Navigating the Investment: Lot Size and Application Details
The IPO is structured with specific lot sizes for different investor categories:
| Investor Category | Minimum Lots | Minimum Shares | Minimum Investment Amount |
|---|---|---|---|
| Individual Investors (Retail) | 2 | 2,000 | ₹2,72,000 |
| High Net Worth Individuals (HNI) | 3 | 3,000 | ₹4,08,000 |
Purpose of the Capital Raise
Greenleaf Envirotech intends to utilize the net proceeds from the IPO for several strategic objectives aimed at fueling its growth and strengthening its operations:
- Funding capital expenditure for purchasing civil machinery and equipment.
- Investing in laboratory equipment to enhance environmental testing capabilities.
- Repaying or partially prepaying existing borrowings from banks and financial institutions.
- Meeting the company's working capital requirements.
- General corporate purposes to support overall business expansion and strategic initiatives.
Ownership and Share Distribution
Understanding the ownership structure is key to assessing a company's stability and commitment.
Promoters Leading the Way
The company is promoted by experienced individuals, Mr. Kamlesh Gordhanbhai Goti and Ms. Gopiben Kalpesh Goti, who are instrumental in guiding Greenleaf Envirotech's vision and operations.
Equity Structure: Pre and Post IPO
The IPO will lead to a dilution in promoter shareholding, which is a common aspect of public offerings:
| Detail | Pre-Issue | Post-Issue |
|---|---|---|
| Promoter Holding | 78.85% | 59.37% |
| Total Shares | 46,19,250 | 59,29,250 |
Allocation for Investors
The shares offered in the IPO are reserved for different investor categories as follows:
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Market Maker | 84,000 | 5.22% |
| Non-Institutional Investors (NII/HNI) | 7,48,000 | 46.46% |
| Retail Individual Investors (RII) | 7,78,000 | 48.32% |
| Total Shares Offered | 16,10,000 | 100.00% |
Financial Health: A Deep Dive into Performance
Analyzing the company's financials provides crucial insights into its performance trajectory and stability.
Financial Performance Highlights
Greenleaf Envirotech Limited has demonstrated strong financial growth. Between the financial years ending March 31, 2024, and March 31, 2025, the company reported a significant revenue increase of 20%, complemented by an impressive 106% surge in Profit After Tax (PAT). This indicates robust operational efficiency and scaling profitability.
Key Financials Snapshot (Amounts in ₹ Crore)
| Particulars | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Assets | 25.38 | 15.74 | 12.74 |
| Total Income | 39.08 | 32.64 | 26.58 |
| Profit After Tax (PAT) | 4.70 | 2.28 | 0.97 |
| EBITDA | 6.62 | 3.66 | 2.09 |
| Net Worth | 12.41 | 7.71 | 2.62 |
| Reserves and Surplus | 7.79 | 3.09 | 1.12 |
| Total Borrowing | 2.49 | 5.13 | 6.12 |
Performance Metrics for Informed Decisions (as of March 31, 2025)
These key performance indicators (KPIs) offer a deeper understanding of the company's efficiency and valuation:
| Metric | Value |
|---|---|
| Return on Equity (ROE) | 46.68% |
| Return on Capital Employed (ROCE) | 45.01% |
| Debt/Equity Ratio | 0.20 |
| Return on Net Worth (RoNW) | 37.84% |
| PAT Margin | 12.09% |
| EBITDA Margin | 17.05% |
| Price to Book Value | 5.06 |
| Earnings Per Share (Pre IPO) | ₹10.17 |
| Earnings Per Share (Post IPO) | ₹7.92 |
| P/E Ratio (Pre IPO) | 13.38x |
| P/E Ratio (Post IPO) | 17.17x |
The company's market capitalization post-IPO is estimated at ₹80.64 Crores.
Strategic Analysis: Opportunities and Considerations
A balanced perspective involves looking at the company's internal capabilities and external market dynamics. Here's a brief strategic analysis of Greenleaf Envirotech.
Strengths (Internal Advantages)
- Strong operational history and proven project execution capabilities in a specialized sector.
- Comprehensive in-house design, engineering, and laboratory facilities.
- Experienced management team and established market presence across multiple states.
- Healthy order book providing revenue stability and visibility.
Weaknesses (Areas for Improvement)
- Reliance on project-based revenue, which can be cyclical.
- Potential for intense competition from larger, more established players in the environmental sector.
- Scalability challenges inherent in project-driven businesses.
Opportunities (External Growth Factors)
- Increasing government focus and funding for wastewater treatment and environmental protection.
- Growing industrialization and urbanization driving demand for ETPs and STPs.
- Potential for expansion into new geographies and diversification of environmental services.
- Rising public awareness and stricter environmental regulations creating market demand.
Threats (External Challenges)
- Changes in government policies or environmental regulations.
- Economic slowdowns impacting infrastructure and industrial projects.
- Fluctuations in raw material costs and labor availability.
- Technological disruptions from emerging environmental solutions.
Participating in the Greenleaf Envirotech IPO: How to Apply
For those interested in applying to the Greenleaf Envirotech IPO, the process is streamlined through various brokerage platforms.
Applying via Popular Brokerage Platforms
You can typically apply for an IPO online using either UPI (Unified Payments Interface) or ASBA (Application Supported by Blocked Amount) as a payment method. Many modern brokerage platforms integrate directly with these systems for a seamless application experience.
Steps to apply in Greenleaf Envirotech IPO through a popular brokerage platform like Zerodha:
- Login to your Broker's Console: Visit the official website of your broker (e.g., Zerodha) and log in to your Console or back-office system.
- Navigate to IPOs: Go to the 'Portfolio' section and click on the 'IPOs' link.
- Find the IPO: Locate 'Greenleaf Envirotech IPO' in the list of open IPOs and click the 'Bid' button.
- Enter Details: Provide your UPI ID, desired Quantity (in multiples of the lot size), and the Price (typically the upper band for fixed-price issues).
- Submit Application: Review your details and submit the IPO application form.
- Approve Mandate: Open your UPI app (like your bank's net banking app or BHIM) to approve the payment mandate within the stipulated time.
Always ensure you approve the UPI mandate before the cut-off time (5 PM on October 6, 2025, for this IPO) to ensure your application is valid.
Understanding the Key Players in the IPO Process
Several intermediaries play vital roles in bringing an IPO to market.
- Issue Management Team (Lead Manager): Smart Horizon Capital Advisors Pvt.Ltd. is responsible for managing the entire IPO process, from drafting the prospectus to marketing the issue.
- Share Allotment Administrator (Registrar): Kfin Technologies Ltd. handles the crucial tasks of processing applications, determining the basis of allotment, and managing refunds and share credits.
- Market Stability Provider (Market Maker): Rikhav Securities Ltd. acts as the market maker, providing liquidity and stability for the shares post-listing on the SME exchange.
Important Company & IPO Information
Connect with Greenleaf Envirotech
For more detailed information, you can reach out to the company:
- Address: 3rd Floor, Room No. 4, Plot No. 27-35, Kankavati Complex, Nandanvan Group H, Soc., Singanpore Road, Surat City, Surat, Gujarat, 395004
- Phone: +91-9714888033
- Email: cs.greenleaf@greenleafenvirotech.in
- Website: www.greenleafenvirotech.in
Essential IPO Documents
Prospective investors should always review the official documents before making any investment decisions:
- Draft Red Herring Prospectus (DRHP): Contains detailed information about the company, its business, financials, and the IPO.
- Final Prospectus: The final offer document with all updated information.
Frequently Asked Questions (FAQs)
Here are quick answers to some common questions:
- What type of IPO is Greenleaf Envirotech? It's an SME IPO, which will be listed on NSE SME.
- When does the IPO open and close? It opens on September 30, 2025, and closes on October 6, 2025.
- What is the minimum lot size? The minimum lot size is 1,000 shares, requiring a minimum investment of ₹2,72,000 for retail investors.
- When is the IPO allotment expected? The basis of allotment is expected to be finalized on October 7, 2025.
- When is the tentative listing date? The tentative listing date is October 9, 2025.
Final Thoughts: Is This the Green Investment for You?
Greenleaf Envirotech operates in a vital sector with a clear growth trajectory driven by environmental imperatives and regulatory support. The company's robust financials, experienced management, and strong order book present a compelling picture. However, like any investment, especially in the SME segment, it comes with its own set of risks and rewards.
Before considering an investment, it is always recommended to conduct your own thorough due diligence, review all official IPO documents, and consult with a financial advisor. Evaluate your investment goals, risk tolerance, and the company's long-term prospects within the evolving environmental solutions market.
This IPO could be an interesting opportunity for investors looking to participate in India's journey towards sustainable development. Happy investing!