Water utility firm Vishvaraj Environment files draft paper for Rs 2,250 crore IPO

Vishvaraj Environment IPO News

Water utility and waste-water management solutions provider Vishvaraj Environment has tapped the capital markets in an effort to raise up to Rs 2,250 crore via an initial public offering (IPO), filing preliminary papers with the Sebi on September 29.

The company proposed to issue fresh shares worth Rs 1,250 crore, while the only promoter entity - Premier Financial Services - plans to offload Rs 1,000 crore worth of shares via the offer-for-sale (OFS) route. The company may also consider raising up to Rs 250 crore in pre-IPO round as part of the fresh issue.

Maharashtra-based Vishvaraj Environment that develops water utility and waste-water management projects, while focusing on the recycling of treated sewage water for industrial use, had an order book of Rs 16,011.3 crore till March 2025.

"We sell 240 MLD of treated sewage water through two PPP projects developed by us and have 300 MLD of projects under development, as of March 2025," the company in its DRHP said.

The company will utilise Rs 545 crore of the net fresh issue proceeds for repaying debt. "As of September 19 this year, the total outstanding borrowings of subsidiaries were Rs 1,278.5 crore," the company said.

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Rs 178.5 crore will be used for building phase-3 of a UF RO technology-based advanced water treatment plant for supply of 300 MLD water (project A) by subsidiary - Nagpur Waste Water Management - Rs 112.8 crore for execution of a 60 MLD STP and 80 MLD tertiary treatment RO (TTRO) plant (project B) by subsidiary Bhusawal Waste Water Management.

It will build a 30 MW (AC) aggregate solar photovoltaic power generating solutions under the Mukhyamantri Saur Krushi Vahini Yojana at a cost of Rs 124.2 crore, and the remaining fresh issue proceeds will be set aside for general corporate purposes.

Vishvaraj Environment, which competes with several listed peers like VA Tech Wabag, ION Exchange India, Welspun Enterprises, Enviro Infra Engineers, and Vishnu Prakash R Punglia, has recorded healthy financial performance in the recent past years. Profit in fiscal year 2025 soared 60.6 percent to Rs 266.3 crore compared to Rs 165.8 crore in previous year. Revenue during the same period increased by 40 percent to Rs 1,758.7 crore, up from Rs 1,255.4 crore.

JM Financial, Axis Capital and DAM Capital Advisors are appointed as the merchant bankers for Vishvaraj Environment's public issue.