Upcoming IPO: Rite Water Solutions files DRHP with Sebi; details here

The public offering comprises a fresh issue of equity shares of up to Rs 300 crore, with an offer-for-sale (OFS) of up to Rs 445 crore by the promoter and investor selling shareholders

Upcoming IPO: Clean-tech player Rite Water Solutions (India) is planning to go public as the company has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, Securities and Exchange Board of India (Sebi), for its initial public offering (IPO). With the public offering, Rite Water Solutions  seeks to raise Rs 745 crore.

 

The public offering, as outlined in the DRHP, comprises a fresh issue of equity shares of up to Rs 300 crore, with an offer-for-sale (OFS) of up to Rs 445 crore by the promoter and investor selling shareholders. The OFS consists of shareholders selling shares up to Rs 85 crore by Vinayak Shankarrao Gan, up to Rs 90 crore by Abhijeet Vinayak Gan, and up to Rs 270 crore by Water Access Acceleration Fund S.L.P.

 

 

"The company, in consultation with the BRLMs, may consider an issue of specified securities aggregating up to Rs 60 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue," the company said in the DRHP.

 

Rite Water Solutions IPO registrar, lead managers

Bigshare Services Private is the registrar of the issue, while JM Financial and Axis Capital are the book-running lead managers.  The equity shares, as proposed in the DRHP, are to be listed on the National Stock Exchange of India (NSE) and BSE.

 

Rite Water Solutions (India) objective

According to the DRHP, the offer is being made through the book-building process, wherein not more than 50 per cent of the net offer is allocated to qualified institutional buyers, and not less than 15 per cent and 35 per cent of the net offer are assigned to non-institutional and retail individual bidders, respectively.

 

Rite Water Solutions will not receive any proceeds from the OFS. "Each of the Selling Shareholders shall be entitled to their respective portion of the proceeds of the Offer for Sale, after deducting their portion of the offer-related expenses and relevant taxes thereon," said the company in the DRHP.

 

However, the proceeds from the fresh issue, the company said, will be utilised for funding the working capital requirements of the company and for general corporate purposes.

 

Rite Water Solutions (India) financials

Rite Water Solutions (India)’s revenue from operations increased by 69.76% to Rs 202.75 crore in FY 2024 from Rs 119.43 crore in FY 2023, primarily due to the accelerated execution of work related to electro-chlorination projects awarded in Fiscal 2022 and 2023, and an order for the supply of solar pumps. Profit after tax grew by 96.95 per cent, to Rs 49.28 crore in FY 2024 from Rs 25.02 crore in FY 2023.

 

For the nine months ended December 31, 2024, revenue from operations stood at Rs 305.68 crore, and profit after tax stood at Rs 71.51 crore.  

As of December 31, 2024, the total order book stood at Rs 1,723.13 crore.

 

About Rite Water Solutions (India)

Established in 2004, Rite Water Solutions (India) is a water technology solutions provider and clean-tech company. The company offers a diverse range of solutions and services spanning water management, solar agriculture, and IoT-enabled systems, with a strong emphasis on rural sustainability and large-scale implementation. Operating on an asset-light model, the company efficiently scales its business with minimal capital expenditure, ensuring flexibility and resilience. Leveraging its expertise in rural and remote regions, the company has expanded into solar agriculture, installing approximately 8.09K solar pumps as of December 31, 2024, with a 2.85 per cent market share of the 280,000 solar pumps deployed between April and December 2024.