VA Tech Wabag raises Rs 120 crore through preferential issue

VA Tech Wabag on Tuesday announced the approval of the issuance of 75 lakh preferential equity share amounting to Rs 120 crore to high-net-worth investors (HNIs).

The shares will be issued at a discount price of Rs 160 per share. Reacting to this news, the share on Wednesday slipped 5.5 per cent during the early trading session on BSE.

The aforesaid investors include Rekha Rakesh Jhunjhunwala, Basera Home Finance Private Limited, Sushma Anand Jain and Anand Jaikumar Jain. The issue of the preference shares to the investors is subject to the approval of members of the company at an annual general meeting, which is scheduled on September 23, 2020.

This is for the first time that the company has proposed to raise capital equity after its initial public offering (IPO) in 2010.

VA Tech Wabag Ltd acts as a systems specialist and full-service provider focussing on the planning, installation, and operation of drinking & wastewater plants for the local government.

At around 12.59 pm, the share was trading 3.23 per cent lower at Rs 219.95 on BSE. In comparison, S&P BSE Sensex was trading up by 0.12 per cent.