Noida-based water storage products maker Vectus plans Rs 500-cr IPO

Vectus Industries, a Noida-based manufacturer of water storage products, is exploring a Rs 500-crore initial public offering and is currently in talks with merchant banks to help it list on the exchanges, officials from two different investment banks told Moneycontrol. Private equity firm Creador has around 20 percent stake in the company and is expected to at least partially monetise it, one of the officials said.

“The company is eyeing a valuation of around Rs 2500 crore. The merchant banker is yet to be selected. Most of the issue will comprise fresh shares with the PE encashing some of its stake,” the second official said.

According to the information available on the company’s website, the more than two-decade-old company has 15 manufacturing plants in India and a manufacturing facility in Kenya. It makes water storage tanks like loft and moulded tanks as well as underground tanks. It also makes plumbing, column pipes, water piping systems and garbage bins for public use.

The company markets its products under Ganga, Gangotri, Maxima, Waterwell and Vectus brands.

Vectus’ business model is intricately linked with macro-outlook with government and private spend being the main drivers. The company is expected to be a major beneficiary of Prime Minister Narendra Modi’s pet project of Swachh Bharat as well as increased spending on housing and private sanitation.