VA Tech Wabag is likely to go for IPO in 2010

VA Tech Wabag is planning to go for initial public offering (IPO) early next year to raise Rs 500-crore to part finance its plans for supporting operations in Middle East and China. The company reported around Rs 50 crore of net profit over sales of Rs 1,100 crore last year. It will sell fresh shares and some portion of the existing shares through the IPO. According to the sources, the board of the company has recently approved an IPO plan and the company would soon file the draft red herring prospectus with Sebi. The main shareholders of VA Tech Wabag are ICICI Venture, which holds a 31% stake, and the management team, led by the managing director Rajiv Mittal, which owns a 38% equity interest. The combined shareholding of GLG of UK, Passport of US, GIC of Singapore and Satta of Hong Kong stands at 30%. The employees hold the remaining 1% stake. Va Tech Wabag Ltd. is a Chennai-based industrial water solution provider, which surprised the industry two years ago by taking over its parent VA Tech Wabag GmbH from Siemens.