Rite Water Solutions files DRHP with SEBI for IPO

Rite Water Solutions has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The public offering aims to raise ₹745 crore. The IPO includes a fresh issue of equity shares up to ₹300 crore and an offer-for-sale (OFS) of up to ₹445 crore by the promoter and investor selling shareholders. JM Financial and Axis Capital are the book-running lead managers, and Bigshare Services Private is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).

Offer for Sale (OFS) Details

Vinayak Shankarrao Gan will be selling shares worth up to ₹85 crore. Abhijeet Vinayak Gan will be selling shares worth up to ₹90 crore. Water Access Acceleration Fund S.L.P. will offer shares worth up to ₹270 crore.

Pre-IPO Placement

The company may consider a pre-IPO placement of specified securities aggregating up to ₹60 crore in consultation with the BRLMs. If the pre-IPO placement is completed, the amount raised will be reduced from the fresh issue.

Utilization of Funds

The funds from the fresh issue, set at ₹225 crore, will be used to support the company's working capital needs and other general corporate activities. The company will not receive any proceeds from the OFS.

Company Information

Rite Water Solutions (India) was originally incorporated as "Nagpur Aquatech Private Limited" on September 24, 2004. The company has evolved from a water technology solutions provider to a Clean-tech player. It offers a range of solutions and services across water solutions, solar agriculture solutions, and IoT solutions. The company focuses on rural sustainability and large-scale execution. Rite Water Solutions is involved in projects across 21,807 villages as of December 31, 2024.

Business Verticals

• Water solutions: Includes water and wastewater treatment, disinfection and purification systems, community water purification plants (CWPP), and water supply schemes.
• Solar agriculture solutions: Includes solar irrigation pumps and solar cold storage systems.
• IoT solutions: Provides digital monitoring applications for enhancing efficiency, improving productivity, and reducing losses for water and energy infrastructure.

The company also provides operation and maintenance (O&M) services for projects executed in each of its three verticals.

Financial Performance

Revenue from operations increased by 69.76% to ₹202.75 crore in FY 2024 from ₹119.43 crore in FY 2023. Profit after tax grew by 96.95% to ₹49.28 crore in FY 2024 from ₹25.02 crore in FY 2023. For the nine months ended December 31, 2024, revenue from operations stood at ₹305.68 crore, and profit after tax stood at ₹71.51 crore. 

Government Collaborations

The company has partnered with government clients for water and solar agriculture solutions through schemes such as Jal Jeevan Mission (JJM), PM Kusum Scheme, and the National Mission for Clean Ganga (NMCG).

Stakeholders

The IPO is backed by Water Access Acceleration Fund S.L.P. (“W2AF”), managed by Incofin Investment Management, which holds a 16.18% stake. Prominent investor Mukul Agrawal supports the initiative with a 2.89% stake.

Objectives of the Offer

• Funding working capital requirements.
• General corporate purposes.

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