Jhunjhunwala among proposed investors for VA Tech Wabag's Rs 120-crore Preferential Issue

Rekha Rakesh Jhunjhunwala will likely be issued up to 50 lakh shares for Rs 80 crore, Basera Home Finance Private Limited will pick up 15 lakh at Rs 24 crore and Sushma Anand Jain & Anand Jai will get 10 lakh shares at Rs 16 crore.

VA Tech Wabag is planning to raise Rs 120 crore from three marquee investors, including Rekha Jhunjhunwala (wife of ace investor Rakesh Jhunjhunwala).

In an exchange filing, the Chennai-based water and sewage treatment company said its board had considered equity infusion on a preferential basis at Rs 160 apiece, which is at 30 percent discount to the stock’s closing price on August 25.

Rekha Rakesh Jhunjhunwala will be issued up to 50 lakh shares for Rs 80 crore, Basera Home Finance Private Limited will pick up 15 lakh at Rs 24 crore and Sushma Anand Jain and Anand Jai will get 10 lakh shares at Rs 16 crore.

"This is the first time the company has proposed to raise equity capital since its IPO in 2010 and we believe that this well-timed equity infusion will provide the necessary growth capital for the company to scale greater heights. We look forward to a long-term association with each of the potential incoming investors," MD & Group CEO Rajiv Mittal said.

With its technology focus, asset-light model and global presence, the company is well-positioned to consolidate its leadership in the water technology sector, he said.

In the backdrop of growing awareness and need for sustainable businesses, across the world, the company is an ideal destination for global investors, especially for ESG focused investors, Mittal said.

Despite the approval of equity infusion plans, shares of VA Tech Wabag were trading at Rs 223, down 1.89 percent on the BSE.

The stock touched an intraday high of Rs 235 and an intraday low of Rs 210.10. On a year-to-date basis, it is up nearly 22 percent.

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