Vishvaraj Environment filed DRHP with SEBI to launch IPO; plans to raise Rs 2,500 crore

Vishvaraj Environment (VEL), a player in water and wastewater management, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering. The IPO comprises 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 may also undertake a pre-IPO placement of up to Rs 250 crore prior to the RHP filing, which would reduce the fresh issue accordingly.

The offer details include both fresh issue and OFS components. Proceeds from the fresh issue are intended for repaying or prepaying borrowings of subsidiaries (Rs 545 crore), funding capital expenditure for three major projects including advanced water treatment and solar PV generation (totalling over Rs 415 crore), and general corporate purposes. Book Running Lead Managers (BRLMs) are JM Financial, Axis Capital and DAM Capital Advisors.

The primary objective of the IPO is to strengthen the company’s financial position by reducing subsidiary debt and investing in expansion projects. VEL aims to allocate funds towards phase three of an advanced water treatment plant (300 MLD), a 60 MLD sewage treatment plant, an 80 MLD tertiary treatment RO facility, and a 30 MW solar photovoltaic power project under the PM Kusum scheme.

Vishvaraj Environment Limited is a leading developer of water utility and wastewater management projects in India with a focus on recycling treated sewage water for industrial use. It has cultivated a strong client base comprising state and central government entities, urban local bodies, and power utilities.

Led by a Strong team of promoters, VEL operates under a diversified business model comprising Public Private Partnership (PPP), Hybrid Annuity Model (“HAM”), Engineering Procurement & Construction (EPC), and Operations & Maintenance (O&M).

VEL was a pioneer in India’s water sector, having launched the country’s first full city 24x7 water supply PPP project in Nagpur, Maharashtra in 2011, later divested in 2020. The company also delivered India’s largest sewage wastewater reuse PPP project, with a 200 MLD STP commissioned in 2018 and a 190 MLD reuse project in 2020, providing treated water to thermal power plants and freeing a similar volume for city use.

“According to its DRHP, its portfolio across 30 cities includes 30 Water Treatment Plants (WTPs) with a combined treatment capacity of 2,090.10 MLD, including 19 O&M projects, and a distribution network of 9,984 km of pipelines. The wastewater portfolio consisted of 60 Sewage Treatment Plants (STPs) with a total treatment capacity of 1,706.57 MLD, including 16 O&M projects.”

As of 31 March 2025, VEL reported an order book of Rs 16,011.34 crore and assets under management (AUM) of Rs 6,677.90 crore. The portfolio includes three operational PPP projects, three PPP projects under construction (Rs 4,428.92 crore), three HAM projects (Rs 1,221.53 crore), and four PPP renewable projects (Rs 1,027.45 crore). Clients range from Nagpur Municipal Corporation to major power and water boards in Maharashtra and Karnataka.

In FY2025, VEL expanded into renewable energy with solar power projects totalling 201 MW (AC) across several districts in Maharashtra. The company achieved a notable revenue CAGR of 62% from FY2023 to FY2025, with operational revenues rising from Rs 669 crore to Rs 1,759 crore, and restated profits increasing from Rs 96 crore to Rs 266 crore.