WAPCOS IPO: Days after filing DRHP, state-owned firm scraps its public issue plan

Days after filing its preliminary papers for IPO, Government-owned WAPCOS Ltd, has put its public listing plan on hold on Wednesday. However, the reason behind scrapping the IPO plans is undisclosed. 

The government was planning to divest shares via WAPCOS IPO in the coming time. The maiden public issue was scheduled to be a complete Offer For Sale (OFS) of up to 32,500,000 equity shares by the promoter, Government of India. For FY 23-24, the government has set a disinvestment target of ₹51,000 crore.

The company had filed its preliminary papers for the proposed IPO on September 26, 2022 with the Securities and Exchange Board of India (SEBI).

The issue was withdrawn on Septenber 21, 2023. The update about the WAPCOS IPO with the markets regulator was showed on Tuesday. The reason behind the withdrawal were not disclosed.

WAPCOS is a company focused on consultancy, and engineering, procurement, and construction services in the field of water, power and infrastructure sectors. It comes under the Ministry of Jal Shakti.

Moreover, the firm also provides its services abroad, particularly in South Asia and across Africa in the fields of dam and reservoir engineering, irrigation and flood control.

During FY22-23, the company's revenue from operations rose 11.35 per cent to ₹2,798 crore in FY22. However, profit after tax rose 14.47 per cent to ₹69.16 crore during the same period. 

Some of the other competitors of the firm that are listed in the market are Ircon International, Rites, Engineers India, National Buildings Construction Corporation (NBCC), and Va Tech Wabag.

During past fifty years, WAPCOS, and its subsidiaries have provided engineering consultancy services for projects in the water, power, and infrastructure sectors within India and overseas, particularly South Asia and across Africa in the fields of dam and reservoir engineering, irrigation, etc.

The firm also undertakes projects related to river morphology, groundwater exploration, agriculture, watershed management, and river basin planning, environmental engineering, hydropower and pump storage, thermal power, renewable energy development, etc.