Water and waste management company, VA Tech Wabag, is eyeing acquisitions in both domestic and overseas markets and plans to launch its IPO of Rs 500-crore in the next three-months, a top company official said.
"We have sought Sebi (market regulator) approval for our IPO and are hopeful of receiving it soon. We hope to launch our IPO in the next three-months," VA Tech Wabag's Managing Director, Rajiv Mittal, told PTI here.
Some of the existing investors such as ICICI Venture, Passport Capital and GLG of the UK, among others, are likely to dilute their stakes in the company.
"The exact details will be made known after receiving Sebi approval and closer to the IPO date," Mittal said, adding that the promoters (management team) would not be diluting their stake.
It is understood that ICICI Venture will dilute around 10 per cent stake but Mittal refused to comment on this.
"The resources raised will be used for acquisitions and increasing our investment in build, own, operate, transfer (BOOT) projects. A part of the proceeds will also be used for working capital purposes and for setting up our corporate office in Chennai," Mittal said.
"We are interested in acquisitions only in emerging markets and not in the developed countries. China and markets in Asia and Africa are on our radar," he said.
The acquisitions would be in the water treatment segment and should fit in with VA Tech Wabag's culture and business strategy, be hi-tech and help in opening-up new geographies, he said.
"We are a cash-rich company and so funding will not be a problem. In fact, if the opportunity presents itself, we could even go in for multiple buys," Mittal said.
The company also plans to invest in BOOT projects. Besides, it will be spending around Rs 45-crore to set up its corporate office in Chennai, to be up and running by end-next year, he said.
At present, ICICI Venture holds a 31 per cent stake in the company, the management team 38 per cent, other investors including venture capital firms, 30 per cent, and independent directors and others, 1 per cent.
