SFC Environmental Technologies files draft papers with SEBI to raise funds via IPO

SFC Environmental Technologies IPO

Wastewater treatment solutions provider SFC Environmental Technologies has filed preliminary papers with the capital markets regulator SEBI on December 2 as it is planning to raise funds via initial public offering. This is the first mainboard filing in the current month.

The IPO comprises of fresh issuance of shares worth Rs 185 crore by the company, and an offer-for-sale of 1.08 crore shares by existing shareholders including promoters Saketchandrasingh Pratapsingh Dhandoriya, and Sandeep Sudhakar Asolkar.

Promoters own 48.17 percent stake in SFC Environmental, and the remainder 51.83 percent shares are held by public shareholders.

The Maharashtra-based company may also consider fund raising of Rs 37 crore before the launch of IPO i.e. pre-IPO placement. In case of completion of pre-IPO placement, it will reduce fresh issue size to the extent of the said amount.

The fresh issue proceeds will be utilised mainly for repaying debt, and working capital requirements.

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With 621 installations in wastewater treatment segment, particularly in sewage treatment plants (STPs), the company holds over 80 percent market share in sequencing batch reactor (SBR) technology, a key wastewater treatment method in India. Furthermore, it also provides operation and maintenance services and other associated accessories to customers.

Incorporated in 2005, SFC Environmental, which competes with listed peers like Thermax, Praj Industries, and Ion Exchange India, recorded net profit at Rs 141.6 crore for the fiscal 2024, up sharply from Rs 93.8 crore in the previous fiscal. Revenue during the same period jumped to Rs 658.4 crore, from Rs 519.7 crore.

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In three-month period ended June 2024, consolidated profit increased to Rs 5.4 crore, up from Rs 3.8 crore in the same period previous fiscal. Revenue during the quarter stood at Rs 94 crore, increasing from Rs 70.5 crore in the corresponding period.

IIFL Capital Services, JM Financial, and Nuvama Wealth Management are appointed as the book running lead managers to the issue.