SFC Environmental Technologies Filed DRHP To Float IPO

The environmental technology company, SFC Environmental Technologies Limited has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to float an IPO comprising a fresh issue and an offer for sale. The company is seeking to raise ₹185 crore from the fresh issue, while the offer for sale (OFS) includes 1,08,24,790 equity shares.

IIFL Capital Services Limited (formerly known as IIFL Securities Limited), JM Financial Limited and Nuvama Wealth Management Limited have been appointed as the book-running lead managers of the IPO.

Objective of SFC Environmental Technologies IPO

Fresh Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

• Prepayment of all or a portion of certain outstanding borrowings availed by the Company and its wholly-owned subsidiary, namely Vasudha Waste Treatment Private Limited;
• Funding its  working capital requirements; and
• General corporate purposes.

Offer For Sale

The company will not be receiving any proceeds from the offer for sale. All the funds will be taken over by the selling shareholders.

About SFC Environmental Technologies Limited

Incorporated in 2005, SFC Environmental Technologies Limited is an environmental technology company offering efficient technologies and comprehensive engineering solutions in the field of wastewater treatment (WWT) and solid waste treatment (SWT). The core operations of the company include providing design, technology, manufacturing, supply and supervision for the installation and commissioning of equipment for the treatment of wastewater.

As of September 30, 2024, the company hold over 80% market share in sequencing batch reactor (SBR) technology with 621 installations in the WWT segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.