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Vishvaraj Environment Limited (VEL), a major player in water utility and wastewater management, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an IPO of INR 2,250 crore. The offering includes a fresh issue of INR 1,250 crore and an offer for sale of INR 1,000 crore by its promoter, Premier Financial Services Ltd. The company plans to use the proceeds for debt repayment, key project capital expenditure, and general corporate purposes. VEL operates 30 water and 60 sewage treatment plants and is diversifying into solar energy across Maharashtra.
Vishvaraj Environment Limited (VEL) has submitted preliminary papers to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) totaling INR 2,250 crore. The IPO comprises a fresh issue of INR 1,250 crore alongside an offer for sale (OFS) of INR 1,000 crore by its promoter, Premier Financial Services Ltd. VEL may also consider raising INR 250 crore through a pre-IPO placement, which would adjust the fresh issue size accordingly. Advertisement
The company intends to use the net proceeds from the fresh issue to repay borrowings of its subsidiaries and fund capital expenditure on three significant projects. These include Phase 3 of a UF-RO advanced water treatment plant with a 300 million litres per day (MLD) capacity, a 60 MLD sewage treatment plant and an 80 MLD tertiary RO plant, and a 30 MW solar photovoltaic project under the PM-KUSUM scheme. A portion of the funds is also earmarked for general corporate purposes.
VEL is a developer of water utility and wastewater management projects, focusing on recycling treated sewage for industrial use. Its clients include state and central government agencies, urban local bodies, and power utilities. The company operates across 30 cities, managing 30 water treatment plants with a combined capacity of 2,090 MLD, including 19 under operation and maintenance contracts. Its wastewater portfolio includes 60 sewage treatment plants totaling 1,706.57 MLD, with 16 O&M projects.
As of March 31, 2025, VEL reported an order book exceeding INR 16,011 crore and assets under management of INR 6,678 crore. Key clients include Nagpur Municipal Corporation, Maharashtra State Power Generation Company, Maharashtra State Electricity Distribution Company, Nagpur Metropolitan Region Development Authority, Bangalore Water Supply and Sewerage Board, Karnataka Rural Drinking Water & Sanitation Department, Maharashtra Jeevan Pradhikaran, and Pimpri-Chinchwad Municipal Corporation.
In FY25, the company diversified into renewable energy by planning 201 MW of solar power projects across Solapur, Amravati, Chandrapur, Nagpur, Yavatmal, and Jalgaon districts in Maharashtra. Financially, revenue increased from INR 669 crore in FY23 to INR 1,759 crore in FY25, while restated profit grew from INR 96 crore to INR 266 crore. JM Financial, Axis Capital, and DAM Capital Advisors have been appointed as book-running lead managers for the public offering.
Source PTI
5th Jun, 2025
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