Greenleaf Envirotech
- Greenleaf Envirotech is coming out with an initial public offering (IPO) of 16,10,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 136 per equity share.
- The issue will open on September 30, 2025 and will close on October 6, 2025.
- The shares will be listed on SME Platform of NSE.
- The share is priced at 13.60 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Smart Horizon Capital Advisors.
- Compliance Officer for the issue is Sheetal Pareek.
Profile of the company
The company is majorly engaged in providing engineering, procurement, construction (EPC) and turnkey solutions for Wastewater Treatment Projects (WWT) specifically in Sewage Treatment Plants (STPs) and Effluent Treatment Plants (ETPs) catering to private and public sectors. Its scope of services covers different stages of the WWT project lifecycle from design engineering, procurement, supply, installation, testing, commissioning and project management. It also provides operations and maintenance (O&M) and annual maintenance contract (AMC) services for WWT projects on standalone basis.
The company also provides environmental laboratory and consulting services through a dedicated facility located in Surat, Gujarat. Its laboratory is duly recognized under the Environment (Protection) Act, 1986 and operates in compliance with applicable regulatory standards. The laboratory is staffed with a team of qualified professionals including quality manager, technical manager, laboratory chemists, microbiologist and field chemists, who is responsible for testing and analysis.
It provides comprehensive environmental testing and reporting services for industrial and infrastructural facilities by analysing environmental parameters that impact air, water, soil and noise, enabling clients and regulatory authorities to assess compliance, identify risks and implement corrective actions where necessary. It is also recognized by the Gujarat Pollution Control Board as a Schedule II Environmental Auditor for carrying out the Environmental Audit under their environment audit scheme. The company also provides fire and safety services where it supplies and refill fire extinguisher for its clients. It also provides annual maintenance contracts for such services in industries and commercial complexes.
Proceed is being used for:
- Funding of capital expenditure of the company towards purchase of civil machines and equipments
- Funding of capital expenditure of the company towards purchase of laboratory equipments
- Repayment or prepayment, in full or in part, of borrowings availed by the company from banks, financial institutions and non-banking financial companies
- Funding working capital requirements of the company
- General corporate purposes
Industry Overview
Water and wastewater management is a promising subsector in India’s environmental technology segment. India’s demand for water is projected to be twice as much as the available supply by 2030. To overcome these challenges, public and private sector facilities have ambitious plans to develop comprehensive water and wastewater treatment and distribution infrastructure. Demand for high-end treatment technologies is growing in India. According to a 2022 Frost & Sullivan report, the Indian water and wastewater treatment market will likely reach $2.08billion by 2025 from $1.31 billion in 2020, registering growth at a compound annual growth rate (CAGR) of 9.7 percent. The report also ranked India as the sixth largest market for environmental technologies in the world, with sub sector rankings of second for water/wastewater management.
The private sector power, food and beverage, chemicals, pharmaceuticals, refineries, and textiles industries prefer advanced treatment technological systems such as reverse osmosis membranes for treating their wastewater. These water treatment markets are gradually shifting from chemical treatment and demineralization plants to membrane technology. The concept of wastewater recycling and zero dischargesystems is becoming more widely accepted as new technologies such as sequencing batch reactor (SBR) and membrane bioreactor (MBR) based treatment gain in adoption.
India’s engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables. India has a competitive advantage in terms of manufacturing costs, market knowledge, technology, and innovation in various engineering sub-sectors. India’s engineering sector has witnessed remarkable growth over the last few years, driven by increased investment in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of huge strategic importance to India’s economy.
Pros and strengths
In-House project execution, designing and engineering capabilities: It has an in-house team comprising qualified engineers, project supervisors, technical officers and quality control personnel for execution and operations and maintenance of WWT projects. Its internal project execution team is responsible for converting conceptual ideas into detailed, actionable project plans. Clients typically share the broad scope and technical specifications of the project, based on which its engineering team undertakes the preparation of comprehensive structural and architectural designs, process flow diagrams, and technical documentation. These design deliverables are created during the initial project stages ensuring key technical domains such as process design and description, hydraulic load calculations, structural design and component detailing, selection and layout of electromechanical systems and adherence to design codes and safety standards.
Quality certification and quality assurance: Maintaining high quality standards is a key focus area for the company and it is accredited with ISO certifications namely ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health and Safety Management) for providing services in the field of environmental monitoring, laboratory, audit and legal consulting, execution of EPC turnkey projects, operation and maintenance of water and waste water treatment plants and firefighting system solutions.
Environmental Laboratory Services: The company has its in-house environmental laboratory which it to provide environmental testing, analysis and reporting services. Its laboratory is located at Surat, Gujarat. Its environmental laboratory services cover the monitoring and analysis of various environmental parameters across the domains of air, water, soil and noise pollution. It provides these services to support environmental compliance, pollution control and sustainability initiatives across a diverse range of industries including chemical manufacturing, infrastructure, engineering and urban utilities. Its laboratory is equipped with necessary instrumentation and testing equipment required to perform high-accuracy, time-bound analyses in line with both client and regulatory requirements.
Risks and concerns
Depend on top 10 customers: It depends on certain key customers for its revenues. For the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, its top ten customers accounted for approximately 77.55%, 94.93%, and 94.12%, respectively, of its revenue from operations. It depends on a limited number of customers, which exposes us to a high risk of customer concentration. Its key customers are from its WWT and O&M business services. A decrease in the revenues it derives from them could materially and adversely affect its business, results of operations, cash flows and financial condition.
Dependent on few suppliers for purchases: The company is dependent on few suppliers for purchases of raw materials. For the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, purchases from the company’s top 10 suppliers accounted for approximately 65.99%, 42.78%, and 44.98%, respectively, of the total cost of goods sold (COGS). The loss of any of these such suppliers may affect its business operations. It also depends on third-party contractors, labour suppliers in certain aspects of its operations and unsatisfactory services provided by them or failure to maintain relationships with them could disrupt its operations.
Maximum revenue comes from private sector customers: Its revenue is primarily dependent on contracts from private sector clients. For the financial years ended March 31, 2025, 2024 and 2023, its revenue from private sector clients constituted 93.79%, 85.01%, and 89.95% of its total revenue from operations, respectively. It derives a substantial portion of its revenue from private sector customers and any adverse developments in the private sector could adversely affect its business, financial condition and results of operations.
Outlook
Greenleaf Envirotech is primarily engaged in the business of Construction of Water Treatment Plant. The company also provides environmental laboratory and consulting services through a dedicated facility located in Surat, Gujarat. The company also provides fire and safety services where it supplies and refill fire extinguisher for its clients along with annual maintenance contracts for such services in industries and commercial sites. On the concern side, it sources its majority of the raw materials from selected states within India i.e., Gujarat, Maharashtra, West Bengal and Rajasthan. Any adverse developments affecting its procurement in these regions could have an adverse impact on its revenue and results of operations.
The company is coming out with an IPO of 16,10,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 136 per equity share to mobilize Rs 21.90 crore. On performance front, the company’s revenue from operations has increased by 19.53% from Rs 3,250.32 lakh in Fiscal 2024 to Rs 3,885.21 lakh in Fiscal 2025. Net profit after tax of the company has increased from Rs 227.72 lakh in Financial Year 2024 to Rs 469.66 lakh in Financial Year 2025.
Meanwhile, its primary focus is to expand its capabilities and experience by selectively pursuing larger projects in the STP and ETP segments of WWT projects. As on the date, it has executed projects with a higher range of 32 MLD in STP segment and up to 6 MLD in ETP segment. Its strategy is to enhance its technical and financial eligibility to qualify for higher-value and large-capacity tenders across India. Further, its in-house environmental laboratory offers a range of services including testing of water, wastewater, ambient air, stack emissions, and soil, among others. it intends to enhance its lab infrastructure by acquiring additional advanced equipments, thereby expanding its capabilities to include gas composition analysis reports, pollutant concentration reports, particulate matter concentration reports, meteorological reports and weather pattern trend analysis, thereby expanding its capabilities.
