IPO Watch: Vishvaraj Environment files draft papers with SEBI for ₹2,250 crore IPO

IPO Watch: Vishvaraj Environment Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

The company's initial public offering consists of a new issue of up to ₹1,250 crores along with an offer for sale totaling up to ₹1,000 crores from the promoter selling shareholder, Premier Financial Services Ltd.

In consultation with the BRLMs, Vishvaraj Environment might consider a Pre IPO of up to ₹250 crore before the submission of its RHP. If this is executed, the amount raised would decrease the fresh issue total.

The company aims to use its net proceeds from the fresh issue to repay or prepay borrowings from its subsidiaries, which total ₹545 crore; finance capital expenditure for three projects amounting to ₹178.5 crore, ₹112.8 crore, and ₹124.1 crore to construct phase 3 of a UF RO technology-based advanced water treatment facility for the supply of 300 MLD water, a 60 MLD STP, and an 80 MLD Tertiary Treatment RO Plant, as well as a 30 MW (AC) solar photovoltaic power generation solution as part of the PM Kusum scheme, in addition to general corporate purposes.

JM Financial, Axis Capital Ltd and DAM Capital Advisors Ltd are the book running lead managers to the issue.

Company details

Vishvaraj Environment is a prominent developer of water utility and wastewater management initiatives in India, concentrating on the recycling of treated sewage water for industrial purposes. The company has built a solid clientele that includes various state and central government organisations, urban local bodies, and power utilities.

Guided by a robust team of promoters, VEL functions under a diverse business model that includes Public Private Partnership (PPP), Hybrid Annuity Model (HAM), Engineering Procurement & Construction (EPC), and Operations & Maintenance (O&M).

As of March 31, 2025, the company reported an Order Book totaling ₹16,011.34 crores and Assets Under Management (AUM) amounting to ₹6,677.90 crores, which encompass three operational projects and three projects in the construction phase under PPP valued at ₹4,428.920 crores; three projects in the construction phase under HAM worth ₹1,221.53 crores; and four projects in the PPP renewable model currently under construction valued at ₹1,027.45 crores.

Among its clientele are the Nagpur Municipal Corporation, Maharashtra State Power Generation Company, Maharashtra State Electricity Distribution Company Limited, and Nagpur Metropolitan Region.

The company is positioned second among its competitors regarding revenue growth, achieving a compound annual growth rate (CAGR) of 62% from fiscal 2023 to fiscal 2025. During this period, its revenue from operations rose from Rs. 669 crores in FY23 to ₹1,759 crores in FY25. Its restated profit also increased from ₹96 crores to ₹266 crores.

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