Fri. Mar 29th, 2024
Rakesh Jhunjhunwala

VA Tech Wabag has raised Rs 120 crore from high net worth individuals including Rekha Rakesh Jhunjhunwala, the wife of investor Rakesh Jhunjhunwala. The company issued 50 lakh shares to Jhunjhunwala on a preferential basis to raise Rs 80 crore. 15 lakh shares worth Rs 24 crore was issued to Basera Home FinanceandSushmaAnand Jain along with AnandJaikumar Jain bought 10 lakh shares for Rs 16 crore. The shares were issued at a price of Rs 160 per equity share including a premium of Rs 158 per share, the company said in a filing to the exchanges.

The company had informed exchanges in July its plans to raise Rs 400 crore by issue of equity or issuing debt papers to explore new business opportunities and fund growth.

VA Tech Wabag, a company engaged in water treatment has been in focus as several high net worth individuals (HNIs) invested into the company. VA Tech Wabag has approved an issue of 7.5 million shares on preferential basis to 3 marquee investors and raised a total of `120 cr.

The allotment is subject to shareholders’ approval during the company’s AGM on September 23rd.“This is the first time the company has proposed to raise equity capital since its IPO in 2010 and they believe that this well-timed equity infusion will provide the needed growth capital for the company to scale incredible heights. The company is well-positioned to consolidate its leadership in the water technology sector with its technology focus, asset-light model and global presence..

About VA Tech Wabag

VA-Tech-Wabag

VA Tech Wabag Limited is a holding company engaged in the water treatment field. The Company’s principal activities include design, supply, installation, construction and operational management of drinking water, wastewater treatment, industrial water treatment and desalination plants. The Company’s segments include India and the Rest of the World. Its product portfolio includes water reclamation, municipal used water treatment, industrial effluent treatment, anaerobic sludge treatment, and industrial water reuse and recycling. The Company has four clusters: India, Europe, Middle East & Africa (MEA), and Latin America (LATAM). The India cluster provides end-to-end water solutions for drinking water and wastewater plants, both in the municipal and industrial sectors. The European cluster caters to small and mid-sized projects. The MEA cluster has two major regions: the Middle East and Africa. The LATAM cluster has countries, including Brazil, Chile, Colombia, Ecuador, Mexico and Peru.

 Order inflow to be strengthened by government schemes

India produces sewage of 61,754MLD whereas the sewage treatment capacity is only 37%. The government aims to increase the capacity to 68% by 2030. NamamiGange, AMRUT, these are the projects which are expected to create 11,550 MLD of additional sewage treatment capacity. The investment required for this sector is around Rs.167bn during 2019-2026. Wabag has already bagged orders worth Rs.3,500 cr under NamamiGange Project.

Order Book is an all-time high

Wabag’s order book continues to be healthy with an order backlog of Rs.11,045crbecause of its technological competitiveness and its recognition as a market leader in the water treatment industry. The company has a healthy mix of EPC and O&M orders at 70% and 30% respectively. The order book has grown at a CAGR of 10% over FY15-20. Increasing the government’s focus on water and tightened regulatory requirements for water recycling will boost the order intake in the coming years.

Va Tech Wabag share price has lost 15.92% in the last one year and gained 24.14% since the beginning of this year.

The share gained 20% intraday on August 21, after the firm announced its board meeting taking place on August 25 in order to consider and approve raising of funds by issuing equity shares on a preferential basis.

 

By Arbaz Khan

aspiring entrepreneur and financial market enthusiast with a zeal to learn and get better with each passing day

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