SFC Environmental Technologies has filed its draft red herring prospectus (DRHP) with SEBI to raise funds through its initial public offering (IPO). The company 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 IPO with the face value of ₹ 2 per equity share, is a mix of fresh issue of up to ₹ 185 Crore and an offer for sale up to 10.82 million equity shares by Promoters and Other Selling Shareholders.
The Offer for Sale consists of shareholders selling up to 12.65 lakh equity shares by Saketchandrasingh PratapsinghDhandoriya, up to 6.88 lakh equity shares by Sandeep Sambhaji Parab, up to 27.12 lakh equity shares by Sandeep SudhakarAsolkar (held jointly with Priya Sandeep Asolkar), and other selling shareholders.
The company intend to utilize a portion of the net proceeds to the extent of Rs 54.95 crore for 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, Rs 90.69 crore for funding its working capital requirements, and general corporate purposes.
The company, in consultation with the BRLMS, may consider a further issue of specified securities, aggregating up to ₹ 37 crore (Pre-IPO placement). If the Pre-IPO placement is completed, the amount raised pursuant to the Pre-IPO placement will be reduced from the fresh issue.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer allocated to non-institutional and retail bidders respectively.
SFC operates through two main divisions: Wastewater Treatment (WWT) and Solid Waste Treatment (SWT). As of September 30, 2024, SFC Environmental Technologies had an order book of ₹631.49crore comprising of 222 ongoing and upcoming projects.
SFC Environmental Technologies compares itself with Thermax Limited, Praj Industries Limited and Ion Exchange (India) Limited, as mentioned in the DRHP.
SFC Environmental Technologies, established in 2005, specializes in the design, technology, manufacturing, supply, and supervision of equipment for wastewater treatment. The company has completed 621 wastewater treatment (WWT) installations, primarily focused on sewage treatment plants (STPs). It holds a dominant position in India, commanding over 80% of the market share in sequencing batch reactor (SBR) technology—a crucial method for wastewater treatment—according to the F&S Report mentioned in the DRHP, as of September 30, 2024.
The Company is a market leader in the municipal solid waste (MSW) sector, SFC offers comprehensive solutions backed by strong operational results. Its core technology for solid waste management is the proprietary Organic Extraction (OREX) system, designed for efficient waste processing.
