Nagpur-based, Clean-tech player, Rite Water Solutions (India), has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise Rs 745 crore through Initial Public Offering (IPO). It is supported by the Water Access Acceleration Fund S.L.P. (“W2AF”) organized and existing under the laws of France and managed by Incofin Investment Management in Belgium and backed by Ace Investor Mukul Agrawal.
The IPO, with a face value of Rs 2, combines a fresh issue of equity shares of up to Rs 300 crore with an offer-for-sale of up to Rs 445 crore by the Promoter and Investor Selling Shareholders.
Offer for Sale consists of shareholders selling shares up to Rs 85 crore by VinayakShankarrao Gan, up to Rs 90 crore by Abhijeet Vinayak Gan, and up to Rs 270 crore by Water Access Acceleration Fund S.L.P.
The company, in consultation with the BRLMS, may consider an issue of specified securities aggregating up to Rs 60 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
The proceeds from the fresh issue, amounting to Rs 225 crore, will be utilized to fund the company’s working capital requirements and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Since its establishment in 2004, Rite Water Solutions (India) Limited has grown from a water technology solutions provider into a leading Clean-tech company. It offers a diverse range of solutions and services spanning water management, solar agriculture, and IoT-enabled systems, with a strong emphasis on rural sustainability and large-scale implementation. Operating on an asset-light model, the company efficiently scales its business with minimal capital expenditure, ensuring flexibility and resilience.
Based in Nagpur, the company ranks as the second fastest-growing in the water sector by revenue between Fiscal 2022 and 2024, with its EBITDA margin increasing from 11.32% to 34.77% in the same period, as noted in a 1Lattice Report mentioned in the DRHP. Leveraging its expertise in rural and remote regions, the company has expanded into solar agriculture, installing approximately 8.09K solar pumps as of December 31, 2024, with a 2.85% market share of the 280,000 solar pumps deployed between April and December 2024. Additionally, Rite Water has established itself as an early mover in IoT solutions, providing digital monitoring tools for large-scale projects to optimize efficiency, productivity, and resource management.
Rite Water’s Clean-tech offerings include water and wastewater treatment, disinfection and purification systems, community water purification plants (CWPP), solar irrigation pumps, solar cold storage units, and IoT-based digital monitoring applications. These solutions are backed by comprehensive operation and maintenance (O&M) services. Committed to providing communities with access to clean water, sustainable sanitation, and reliable energy, the company utilizes technology-driven solutions to tackle climate-related challenges in rural areas, improving livelihoods and fostering local economic growth.
With a strategic presence in high-growth sectors—water and wastewater treatment, solar pumps, and IoT—Rite Water is well-positioned to capitalize on markets expected to grow at CAGRs of 12.0%, 32.1%, and 20.5%, respectively, from Fiscal 2024 to Fiscal 2030, with a total addressable market of US$ 37.1 billion (Rs 3.25 trillion) in Fiscal 2024.
Rite Water’s clients includes state government agencies, organizations, and private enterprises, with strong partnerships under key government initiatives like the Jal Jeevan Mission (JJM), PM Kusum Scheme, and the National Mission for Clean Ganga (NMCG).
As of December 31, 2024, Rite Water has impacted over 21,800 villages through water purification, solar pumps, cold storage, and IoT-driven energy and water management solutions. It has an extensive reach and last-mile delivery capabilities position it as a key system integrator driving real impact in rural areas.
As of December 31, 2024, the total order book stood at Rs 1,723.13 crore.
Rite Water Solutions (India)’s revenue from operations has increased by 69.76% to ₹202.75 crore in Fiscal 2024 to ₹119.43 crore in Fiscal 2023, primarily due to accelerated execution of work related to electro-chlorination projects, awarded in Fiscal 2022 and 2023, and an order for supply of solar pumps. Profit after tax grew by 96.95%, to ₹49.28 crore in Fiscal, 2024 to ₹25.02 crore in Fiscal, 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.
JM Financial Limited and Axis Capital Limited are the book-running lead managers and Bigshare Services Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
