The Chennai-based water solutions company VA Tech Wabag plans to raise around Rs 500 crore through an initial public offering (IPO). The company would file the draft red herring prospectus (DRHP) with the SEBI (Securities and Exchange Board of India) by the end of this month.
“We will dilute around 10 per cent stake in our company and expect to announce our IPO during the next financial year,” Rajiv Mittal, managing director, VA Tech Wabag told Hindustan Times.
Mittal added that the company plans to invest around Rs 1,500 crore per year for various water solution projects across the country. It has already submitted tender for a desalination plant at Chennai, to be built at an expected cost of around Rs 1,000 crore.
The company is also executing various water solution projects for the Delhi Jal Board, which includes the Rs 35 crore water treatment plant for the Commonwealth Games.
“At present we are implementing four projects with a cumulative amount of around Rs 600 crore for the Delhi Jal Board which involves setting up new water treatment and sewage treatment plants, refurbishment and running these plants”, explained Mittal.