VA Tech Wabag Raises Rs 120 Crore From Rekha Jhunjhunwala, Two Others
VA Tech Wabag Ltd. has raised as much as Rs 120 crore from three high net-worth investors, including the wife of market veteran Rakesh Jhunjhunwala.
The board of the water and sewage treatment company has approved a preferential issue of up to 75 lakh shares at Rs 160 apiece to raise up to Rs 120 crore, according to an exchange filing on Tuesday. The issue price is at a discount of 30% to the stock’s closing price on Aug. 25.
Rekha Jhunjhunwala will be issued up to 50 lakh shares, according to the filing, while the remainder will be distributed among Basera Home Finance, Sushma Anand Jain and Anand Jain (of Jai Corporation).
The allotment is subject to shareholders’ approval during an annual general meeting scheduled to be held on Sept. 23.
“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,” Rajiv Mittal, managing director and group chief executive officer of VA Tech Wabag, was quoted as saying in a statement.
The company had in June planned to raise Rs 400 crore to explore growth opportunities. That has now been reduced to Rs 280 crore.
Shares of VA Tech Wabag have gained nearly a quarter so far this year, at a time when the broader Nifty 500 Index has fallen by 3.7%.