VA Tech Wabag shares hit a 52-week low of Rs 73 apiece on BSE in April this year, since then the stock price has skyrocketed 222 per cent.
VA Tech Wabag share price has nearly doubled so far in August, rising 96 per cent from Rs 120.20 apiece. The company on Tuesday informed that its board has approved raising of Rs 120 crore from investors including Rekha Jhunjhunwala, wife of Rakesh Jhunjhunwala. VA Tech Wabag will issue up to 75 lakh shares on a preferential basis at a price of Rs 160 per equity share. Rekha Jhunjhunwala has invested Rs 80 crore for 50 lakh shares of the company on a preferential basis. The other two investors, Basera Home Finance bought 15 lakh shares for Rs 24 crore, and Sushma Anand Jain along with Anand Jaikumar Jain invested Rs 16 crore for 10 lakh shares of the company.
VA Tech Wabag shares hit a 52-week low of Rs 73 apiece on BSE in April this year, since then the stock price has skyrocketed 222 per cent. In the noon deals, the company’s stocks were trading 4.22 per cent down at Rs 217.50 apiece, as compared to a 0.12 per cent fall in the benchmark S&P BSE Sensex. VA Tech Wabag shares had hit a 52-week high of Rs 311.90 on September 12, 2019. This is the first the company has proposed to raise equity capital since its IPO in 2010. “We believe that this well-timed equity infusion will provide the necessary growth capital for the company to scale greater heights,” said Rajiv Mittal, MD & Group CEO, VA Tech Wabag.
VA Tech Wabag on July 31, 2020, had informed stock exchanges that the company’s board is considering growth plans, newer business opportunities which would fuel the next phase of growth of the company. It also informed that the board had approved the proposal of fundraising up to Rs 400 crore, by either share sale or issuing debt papers. “The company with its technology focus, asset-light model and global presence is well-positioned to consolidate its leadership in the water technology sector. In the backdrop of growing awareness and need for sustainable businesses, across the world, we believe that the company is an ideal destination for global investors, especially for ESG focused investors,” Mittal added.
The company also informed that its board has also approved to hold an annual general meeting (AGM) on September 23, 2020. Earlier this month, analysts at research and brokerage firm Philip Capital noted that the current pandemic will only accelerate investments in sanitation and water treatment. The brokerage firm added that the key monitorable would be VATW’s ability to collect long pending dues from AP and TS gencos (30% of capital employed) and 2) structurally reduce ex- genco receivables from current 360+ days.