Denta Water and Infra Solutions files DRHP with SEBI to raise funds via IPO
- If the company successfully secures funds through a pre-IPO placement, the size of the fresh issue will be proportionally reduced by the amount obtained from this pre-IPO placement.
Bangalore-headquartered Denta Water and Infra Solutions have submitted draft red herring prospectus (DRHP) documents to the Securities and Exchange Board of India (SEBI) to initiate the process of raising funds through an initial public offering (IPO).
The IPO specifically involves a new issuance of 75 lakh equity shares by the company, with no inclusion of an offer-for-sale component.
"..company, in consultation with the merchant bankers, may consider a further issue of specified securities, including by way of a private placement, rights issue, or preferential issue of 11 lakh equity shares before the filing of the red herring prospectus with the Registrar of Companies," the company said in its draft papers.
If the company successfully secures funds through a pre-IPO placement, the size of the fresh issue will be proportionally reduced by the amount obtained from this pre-IPO placement.
Denta Water, an established player in water engineering, procurement, and construction (EPC) services, plans to deploy the proceeds from its recent fresh issue for critical working capital needs, totaling ₹150 crore. Of this sum, ₹50 crore is earmarked for utilization in the ongoing financial year, with the remaining ₹100 crore slated for deployment in the subsequent financial year. Additionally, the remaining funds from the fresh issue will be allocated for general corporate purposes.
The water and infrastructure solutions firm, specializing in groundwater recharging initiatives, has successfully concluded 27 projects associated with the development of water management infrastructure as of October 2023.
“As of October 2023, we have 22 ongoing projects constituting an aggregate contract value of ₹984.23 crore, out of which ₹976.7 crore for water management projects; and ₹7.54 crore of infrastructure projects including railways and roadways," Denta Water said.
SMC Capitals is the book-running lead manager for the issue.Of the overall contract valuation amounting to ₹984.23 crore, the company based in Karnataka has successfully executed projects totaling ₹211.3 crore. The remaining order book stands at ₹772.94 crore.
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