VEL Files for Rs 2,250 Crore IPO to Fund Expansion and Reduce Debt
Vishvaraj Environment Limited (VEL), a prominent player in water utility and wastewater management, has submitted a Draft Red Herring Prospectus (DRHP) to SEBI for an Initial Public Offering (IPO). The IPO includes a fresh issue of up to Rs 1,250 crore and an offer for sale (OFS) of up to Rs 1,000 crore by Premier Financial Services.
VEL operates in diverse business models such as Public-Private Partnerships (PPP), Hybrid Annuity Models (HAM), Engineering, Procurement, and Construction (EPC), and Operation & Maintenance (O&M). The company specializes in recycling treated sewage water for industrial use. As of 31 March 2025, VEL's order book stood at Rs 16,011.34 crore and assets under management (AUM) were Rs 6,677.90 crore.
Proceeds from the IPO will be utilized to repay subsidiaries' borrowings amounting to Rs 545 crore, fund capital expenditure for major projects totaling over Rs 415 crore, and meet general corporate purposes. VEL aims to reduce subsidiary debt and invest in expansion projects with these funds. Notably, VEL expanded into renewable energy in FY2025, commissioning solar power projects totaling 201 MW (AC) across several districts in Maharashtra.
VEL's portfolio comprises 30 Water Treatment Plants (WTPs) with a combined treatment capacity of 2,090.10 MLD and 60 Sewage Treatment Plants (STPs) with a total treatment capacity of 1,706.57 MLD. These plants are strategically located in cities such as Amravati, Aurangabad, and Wardha. The company may also undertake a pre-IPO placement of up to Rs 250 crore, reducing the fresh issue accordingly.
VEL's IPO, with a total issue size of up to Rs 2,250 crore, is expected to fortify the company's financial position and support its expansion plans. The company's diversified business model, robust order book, and expansion into renewable energy signal a promising future in the water utility and wastewater management sector.
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