VA Tech Wabag to raise Rs 120 cr from marquee investors, HNIs

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August 26, 2020 5:05 AM

The investors include Rekha Rakesh Jhunjhunwala, Basera Home Finance, Sushma Anand Jain and Anand Jaikumar Jain.

This is the first time the company has proposed to raise equity capital since its IPO in 2010.This is the first time the company has proposed to raise equity capital since its IPO in 2010.

Chennai-headquartered pure-play water technology company VA Tech Wabag on Tuesday said it is proposing to allot preferential issue of equity shares aggregating to Rs 120 crore to marquee investors and high net worth individuals (HNIs) as part of the infusion of equity capital into the company.

The investors include Rekha Rakesh Jhunjhunwala, Basera Home Finance, Sushma Anand Jain and Anand Jaikumar Jain.

The company will issue 75 lakh equity shares on a preferential basis at a price of Rs 160 per equity share for cash aggregating to Rs 120 crore, VA Tech Wabag said in a disclosure to the stock exchanges. This is the first time the company has proposed to raise equity capital since its IPO in 2010.

Rajiv Mittal, MD & group CEO, VA Tech Wabag, said: “This is the first time the company has proposed to raise equity capital since its IPO in 2010 and we believe that this well-timed equity infusion will provide the necessary growth capital for the company to scale greater heights.”

The issue of equity shares to the proposed Investors, are subject to the approval of the members of the company at the ensuing Annual General Meeting scheduled to be held on September 23, 2020.

“We look forward to a long-term association with each of the potential incoming investors. 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 a 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.

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