VA Tech Wabag's IPO receives muted response

The IPO receives bids for 1.43 lakh shares.

VA Tech Wabag's IPO received a weak response from investors. The IPO was subscribed meager 0.05 times on day one of its bidding today, 22 September 2010. The IPO received bids for 1.43 lakh shares compared with 31.28 lakh shares on offer.



The company has fixed a price band of Rs 1,230-1,310 a share for its initial public offering (IPO). The issue of Rs 475 crore opened for bidding today, 22 September 2010 and will close on Monday, 27 September 2010. The issue consists of a fresh issue of Rs 125 crore and offer for sale of Rs 350 crore.

VA Tech Wabag has received commitment of Rs 70.9 crore from anchor investors as against allotment of 5,41,136 equity shares at Rs 1310 a share, higher end of price band of Rs 1,230-1,310.

Anchor investors are Religare Trustee Company, ICICI Prudential, Birla Mutual Fund, AIG Global Investment Group, Canara Robeco MF, Kotak Mahindra MF, Morgan Stanley MF, Emerging Markets Managment Mauritus, Equanum Intl, Goldman Sachs, HSBC MIP, Sunaram BNP Paribas, HDFC Trustee Company, India Capital Fund, Tree Line Asia Master Fund, Templeton MF and ICICI Lombard General Insurance Company.

VA Tech Wabag (VTWL) is a multinational player in the water treatment industry with strong presence in developing countries including India, China, Middle East, North Africa, South East Asia, Middle East as well as Central and Eastern Europe. The company provides EPC and operation & maintenance (O&M) services for sewage treatment, processed and drinking water treatment, effluents treatment, sludge treatment, desalination and reuse for institutional clients like municipal corporations and industrial players in power, steel, oil & gas. As on July 31, 2010, the company had executed 113 projects and is currently executing 81 projects.

The company's consolidated net profit rose 28.3% to Rs 44.74 crore on 7.98% rise in sales to Rs 1123.74 crore in the full year ended March 2010 over the full year ended March 2009