Vishvaraj Environment Seeks ₹2,250 Crore IPO for Water Treatment Expansion

Vishvaraj Environment, a prominent player in water utility and waste-water management solutions, has taken a significant step towards public listing by filing draft papers with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) worth ₹2,250 crore.

IPO Structure and Funding Allocation

The proposed IPO comprises two components:

• A fresh issue of shares amounting to ₹1,250 crore
• An offer for sale of ₹1,000 crore by the promoter, Premier Financial Services

Vishvaraj Environment is also considering a pre-IPO placement of ₹250 crore, which could potentially reduce the size of the fresh issue.

The proceeds from the IPO are earmarked for several key purposes:

1. Repayment of borrowings by the company's subsidiaries
2. Funding capital expenditure for three major projects:
   • A 300 MLD (Million Liters per Day) water treatment plant
   • A 60 MLD sewage treatment plant with an 80 MLD tertiary Reverse Osmosis (RO) plant
   • A 30 MW solar power project

Company Overview and Financial Performance

Vishvaraj Environment has established a strong presence in the water management sector:

• Operations span across 30 cities in India
• Manages 30 water treatment plants with a total capacity of 2,090 MLD
• Operates 60 sewage treatment plants with a combined capacity of 1,706.57 MLD

The company's financial metrics showcase robust growth:

• Order book exceeding ₹16,011.00 crore
• Assets under management of ₹6,678.00 crore
• Revenue from operations increased from ₹669.00 crore to ₹1,759.00 crore
• Profit rose from ₹96.00 crore to ₹266.00 crore

IPO Management

The book-running lead managers for this IPO are:

• JM Financial
• Axis Capital
• DAM Capital Advisors

This public offering represents a significant opportunity for Vishvaraj Environment to bolster its position in the water treatment and management sector, potentially accelerating its growth and expanding its project portfolio across India.