VA Tech Wabag plans Rs 500cr IPO

The public offering by VA Tech would be a new category of issue,after successful fund raising by microfinance major SKS Microfinance,experts said.

Incorporated in 1996,VA Tech Wabag is headquartered in Chennai and provides turn-key solutions for water and waste water treatment to municipal and industrial users.

Besides India,VA Tech has presence in the Middle East,North Africa,Central and Eastern Europe,China and South East Asia.

As on July 2010,the firm has executed 113 projects and is currently executing 81 projects.

Rating agency ICRA has graded the issue as 4/5 indicating above average fundamentals.

Experts say that while the water situation in India is grim,reforms on the regulation front have begun to take shape and success of these can throw up potentially huge investment opportunities.

In view of huge demand for water,expected shortages and likely reforms,the water sector provides vast opportunities for water management companies.

Enam Securities and IDFC Capital are book running lead managers to the issue.