Vishvaraj Environment Files DRHP to Raise ₹2,250 Crore via IPO

Vishvaraj Environment, a leading developer of water utility and wastewater management projects in India, has filed a Draft Red Herring Prospectus (DRHP) with SEBI for its first public issue. The company plans to raise ₹2,250 crore through a mix of fresh issue and Offer for Sale (OFS). Premier Financial Services is the promoter selling shareholder.

Book-running lead managers: JM Financial, Axis Capital, and DAM Capital Advisors
Registrar of the issue: MUFG Intime

The company may also consider a Pre-IPO of up to ₹250 crore, which would reduce the fresh issue amount.

Use of Proceeds

According to the DRHP, the funds from the fresh issue will be used for:

• Repaying borrowings of subsidiaries: ₹545 crore
• Capital expenditure on key projects:
  • Phase 3 UF RO advanced water treatment plant (300 MLD) – ₹178.5 crore
  • Sewage Treatment Plant (60 MLD) and tertiary RO plant (80 MLD) – ₹112.8 crore
  • 30 MW solar photovoltaic project under PM Kusum Scheme – ₹124.1 crore
• General corporate purposes for the remaining funds

Business Model and Operations

Vishvaraj Environment focuses on recycling treated sewage water for industrial use. Its operations cover:

• Public Private Partnership (PPP)
• Hybrid Annuity Model (HAM)
• Engineering, Procurement & Construction (EPC)
• Operations & Maintenance (O&M)

The company operates across 30 cities, with:

• 30 Water Treatment Plants (WTPs) – 2,090.10 MLD capacity
• 60 Sewage Treatment Plants (STPs) – 1,706.57 MLD capacity
• Pipeline network: 9,984 km

Financial Performance

For FY25, Vishvaraj Environment reported:

• Revenue: ₹1,758.7 crore, up 40% from FY24
• Profit After Tax (PAT): ₹266.26 crore, up 61%
• EBITDA: ₹423.96 crore, up 24%

The company’s order book stands at ₹16,011.34 crore, and Assets Under Management (AUM) total ₹6,677.90 crore. Several projects are under construction across PPP, HAM, and PPP renewable models.

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Key Clients

Vishvaraj Environment works with prominent clients, including Nagpur Municipal Corporation, Maharashtra State Power Generation Company, Bangalore Water Supply & Sewerage Board, Karnataka Rural Drinking Water & Sanitation Dept., and Pimpri-Chinchwad Municipal Corporation, among others.

Conclusion

Vishvaraj Environment’s IPO aims to fund growth, repay debts, and expand its water and wastewater management projects. With strong financials, a robust order book, and a diversified business model, the IPO offers investors exposure to India’s essential water infrastructure sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.