Rite Water Solutions files Rs 745-cr IPO papers with Sebi

Nagpur-based Rite Water Solutions (India) -- a clean-tech firm -- has filed preliminary papers with capital markets regulator Sebi to raise Rs 745 crore through an initial public offering (IPO).

The company is supported by the Water Access Acceleration Fund SLP (W2AF) organised and existing under the laws of France and managed by Incofin Investment Management in Belgium.

The IPO comprises a fresh issue of equity shares of up to Rs 300 crore with an offer for sale (OFS) component of shares aggregating to Rs 445 crore by the promoters and investor selling shareholder, according to the draft red herring prospectus (DRHP) filed by the company on Monday.

Under the OFS, promoters -- Vinayak Shankarrao Gan will be selling shares up to Rs 85 crore, shares for up to Rs 90 crore by Abhijeet Vinayak Gan, while Water Access Acceleration Fund SLP will dispose of its securities worth Rs 270 crore.

The promoters of the company owned a 80.13 per cent stake in the company while public shareholders held a 19.87 per cent.

The company plans a pre-IPO placement of shares aggregating to Rs 60 crore. If such a placement is completed, the fresh issue size will be reduced.

Proceeds from the fresh issue amounting to Rs 225 crore, will be utilised to fund the company's working capital requirements and general corporate purposes.

Incorporated in 2004, Rite Water Solutions is the only clean-tech company in India with a diverse offering for rural transformation, focused on water solutions, solar agriculture solutions, and internet of things (IoT) solutions for energy, agriculture, and water management sectors.

According to 1Lattice report, Rite Water Solutions is the second fastest-growing company in the water solutions space in terms of revenue between FY22 and FY24.

The company has successfully partnered with various government clients, undertaking projects for water and solar agriculture solutions, such as Jal Jeevan Mission, Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM Kusum Scheme) and the National Mission for Clean Ganga.

As of December 31, 2024, its successful project execution has led to a strong order book of Rs 1,723.13 crore, highlighting a robust and diverse project pipeline.

The company's revenue from operations has increased by 69.76 per cent to Rs 202.75 crore in FY24 to Rs 119.43 crore in FY23. Its profit after tax (PAT) grew 96.95 per cent to Rs 49.28 crore in FY24 to Rs 25.02 crore in FY23.

For the nine months ended December 31, last year, Rite Water Solutions' revenue from operations stood at Rs 305.68 crore, and PAT stood at Rs 71.51 crore.

JM Financial Ltd, Axis Capital are the book-running lead managers while Bigshare Services Pvt Ltd is the registrar to the issue.

The company's shares are proposed to be listed on the National Stock Exchange (NSE) and the BSE.