MUMBAI: CLSA private equity-backed Earth Water Group, a specialised water treatment company, is set to list its shares locally, raising about Rs 650-850 crore probably in the first such IPO since VA Tech Wabags debut on the exchanges eight years ago.
The company is expected to file the Draft Red Herring Prospectus in the next few weeks, two people with knowledge of the matter told ET.
“Promoters may dilute 15-20% stake through the proposed public sale of shares although the terms and conditions are not yet final,” said one of the persons cited above.
An email sent to the company remained unanswered until the publication of this report.
Earth Water Group has appointed domestic investment bankers including IIFL and ICICI Securities, while AZB & Partners and J Sagar Associates are the legal advisors.
New Delhi-based Earth Water Group, through its subsidiaries, engages in water and waste water management along with other solutions. Earth Water Group comprises three-four companies in the water sector. The issuer will be one of those arms.
More than seven years ago, CLSA Capital Partners invested in the Earth Water Group.
The investment was made by CLSA Capital's Clean Resources Asia Growth Fund, which has a mandate to invest in clean technology.
Corporate India raised $3.8 billion through 19 public share sales between January and June this year. Funds raised have increased by nearly three-fold over the corresponding period last year.
Indian companies and the central government could raise about Rs 2 lakh crore this year in equity and equity-linked offerings, but uncertain secondary market conditions could still throw some plans off schedule, ET reported on March 7 earlier this year citing investment bankers. Fundraising would be more or less similar to what was raised in 2017.
Renewables, thermal power, roads, real estate, consumption and banking, financial services, and insurance are the sectors seen dominating this year.
The water business in India has turned out to be an emerging multibillion dollar industry as the country seeks to devise technology to have clean water amid pollution threats and scarcity.
Although there is no official figure available, industry estimates put the total worth of the water business in India to be close to $5 billion, show an estimate by India Waterportal.
VA Tech Wabag, one of the worlds leading companies in the water treatment field, had hit the capital markets in 2010-11.