IPO Details
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Schedule of SFC Environmental Technologies Ltd IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About IPO
SFC Environmental Technologies Ltd will soon launch its IPO, comprising a fresh issue and an offer for sale. While the fresh issue size is pegged at ₹ 185 crore, the offer for sale consists of up to 10,824,790 equity shares with a face value of ₹2 each. The credit of shares will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of SFC Environmental Technologies Ltd
The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:
- Prepayment of all or a portion of certain outstanding borrowings.
- Funding working capital requirements.
- General corporate purposes.
SFC Environmental Technologies Ltd Valuation
SFC Environmental Technologies Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the Offer size |
Non-institutional Investors (NIIs) | Not less than 15% of the Offer |
Retail-individual Investors (RIIs) | Not less than 35% of the Offer |
Industry Outlook
India's wastewater treatment market is experiencing robust growth due to rising industrial and municipal sector demands. This surge is fuelled by increased industrial activities, economic growth and groundwater depletion, necessitating effective wastewater management solutions.
Over the past five years, the market has grown at a CAGR of 5.5% and is forecasted to accelerate to 9.6% in the coming five years (Source: F&S Report). Additionally, the Municipal Solid Waste (MSW) sector offers diverse revenue streams, including sales of compressed biogas, electricity, recyclables, and compost. The revenue potential in MSW is projected to grow at a CAGR of 10.6%, reaching ₹25,750 crore by FY 2028.
Company Information
SFC Environmental Technologies Limited, established in 2005, is headquartered in Navi Mumbai, India. The company operates in the environmental technology sector, specialising in wastewater treatment, solid waste management, and renewable energy solutions. It leverages proprietary technologies such as C-Tech for wastewater treatment and OREX for waste processing to provide sustainable solutions to municipalities, industrial operators, and infrastructure companies.
SFC Environmental Technologies Ltd Strengths
Technology-Driven Leadership in Wastewater Treatment
The growing global water scarcity crisis emphasises the need for wastewater treatment solutions. India is driving positive change through wastewater reuse for non-potable purposes, creating new water sources. With 621 installations in the WWT segment, the company holds over 80% market share in SBR technology, treating 14,812.86 MLD of wastewater. As pioneers in SBR technology with the introduction of C-Tech, the company has enabled large-scale STPs, including one with a 375 MLD capacity under development as of November 2024. This technological edge positions the company as a key player in addressing India’s water management challenges.
Backward Integration Through Innovation and Technology
The company leverages proprietary technologies like C-Tech and OREX, driving growth and operational efficiency. C-Tech, a fourth-generation SBR system, offers superior wastewater treatment, reduced space requirements, and environmental benefits, with automation enabling remote management. OREX efficiently segregates mixed municipal waste, minimising manual oversight and promoting reuse. Backward integration through in-house manufacturing of components like decanters, diffusers, and PLC/SCADA systems ensures quality, reduces supplier dependency, and enhances system performance. This approach fosters continuous innovation, cost efficiency, and environmental sustainability while aligning with global standards. The comprehensive control of the value chain strengthens the company’s resilience and market responsiveness.
Strong Repeat Business and Order Book
The company maintains long-standing relationships with customers, resulting in a high proportion of repeat business. Notably, 75.48% to 89.96% of revenue from operations came from repeat customers in different periods. The company has consistently provided services to prominent industry players, demonstrating its commitment to delivering quality and reliability. This strong brand reputation, cultivated over 19 years, solidifies its position as a preferred partner in the industry
Risks of SFC Environmental Technologies Ltd IPO
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The company’s revenues and operations rely heavily on technology. Any failure to upgrade or innovate these technologies or to identify and develop new solutions could negatively impact its operational results. Moreover, emerging technologies may displace the company’s existing offerings, and an inability to adapt to technological advances, a shifting competitive environment, or changing industry trends could harm its business and competitiveness.
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The company relies heavily on its top 10 customers for a substantial portion of its revenue and lacks long-term contracts with most clients. Should any of these customers decide not to source their requirements from the company or terminate existing contracts, it could adversely impact its business, operational results, and financial condition.
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The company has working capital and capital expenditure or investment requirements, and if additional financing is not secured when needed, it could negatively impact the company’s operations, cash flows, and financial condition.
SFC Environmental Technologies Ltd Financials
| Year | Revenue from Operations (in ₹ crore) | Total Equity and Liabilities (in ₹ crore) | Return on Net Worth (in %) |
|---|---|---|---|
FY 24 | 658.39 | 905.81 | 30.44 |
FY 23 | 519.68 | 640.01 | 25.93 |
FY 22 | 496.73 | 519.11 | 29.22 |
Comparison with peers
| Parameter | SFC Environmental Technologies Limited | Thermax Limited | Praj Industries Limited | Ion Exchange (India) Limited |
|---|---|---|---|---|
Revenue from operations for Fiscal 2024 (in ₹ crore) | 658.39 | 9323.46 | 3466.27 | 2347.84 |
P/E for FY 24 | NA | 84.99 | 45.19 | 38.45 |
Return on Net Worth for FY 24 in % | 30.46 | 15.53 | 24.09 | 21.18 |
EPS in ₹ for FY 24 | 15.16 | 57.30 | 15.42 | 16.53 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
Link Intime India Private Limited is the registrar of the SFC Environmental Technologies Ltd IPO. The book-running lead managers are:
- Nuvama Wealth Management Limited
- IIFL Capital Services Limited (formerly known as IIFL Securities Limited)
- JM Financial Limited
Business Model
The primary business of SFC Environmental Technologies Limited is focused on providing innovative environmental solutions, particularly in wastewater treatment, municipal solid waste management, and renewable energy. The company designs, manufactures, and delivers treatment technologies and systems, including proprietary solutions like C-Tech for wastewater treatment and OREX for waste processing. It serves municipalities, industrial operators, and infrastructure clients, offering end-to-end services from technology development and equipment supply to installation and maintenance. The company emphasises sustainable practices and resource recovery to meet environmental and regulatory standards effectively.
Company Growth Trajectory
The company has achieved a notable growth trajectory, with revenue from operations increasing at a compound annual growth rate (CAGR) of 15.13%, rising from ₹496.73 crore in Fiscal 2022 to ₹658.39 crore in Fiscal 2024. The future growth strategy emphasises identifying market opportunities, expanding internationally, leveraging technological innovation, and enhancing operational efficiency. However, success depends on effectively navigating factors like competition, regulatory changes, and market dynamics.
SFC Environmental Technologies Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |mobile_heder |
|---|---|---|---|
Total Income (in ₹ crore) | 677.64 | 531.06 | 513.89 |
Profit Before Tax ( in ₹ crore) | 193.44 | 127.25 | 116.99 |
Profit After Tax ( in ₹ crore) | 144.17 | 94.80 | 85.16 |
EBITDA (in ₹ crore) | 193.25 | 124.07 | 108.80 |
EPS (in ₹) | 15.16 | 10.05 | 8.98 |
SFC Environmental Technologies Ltd Cash Flow
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Net Cash Used in Operating Activities (in ₹ crore) | (4.37) | 32.16 | (4.19) |
Net Cash Used in Investing Activities (in ₹ crore) | (76.03) | (13.05) | (17.16) |
Net Cash Generated from Financing Activities (in ₹ crore) | 63.69 | (22.87) | 19.19 |
Cash and Cash Equivalent at the End of the Year (in ₹ crore) | (16.70) | (3.76) | (2.16) |
How to Check the Allotment Status of SFC Environmental Technologies Ltd?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of Link Intime India Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is SFC Environmental Technologies Ltd.
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the website of f Link Intime India Private Limited:
- Visit the website of Link Intime Private Ltd
- Click on IPO Allotment Status
- Choose the name of the company from the ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How to Apply for SFC Environmental Technologies Ltd
Here are the steps to apply for SFC Environmental Technologies Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
SFC Environmental Technologies Ltd IPO FAQs
What is the SFC Environmental Technologies Ltd?
The SFC Environmental Technologies Ltd IPO is a 100% book-built issue comprising a fresh offer and an offer-for-sale. The fresh issue size is pegged at ₹185 crores.
Is the SFC Environmental Technologies Ltd IPO coming?
Yes, SFC Environmental Technologies Ltd is expected to launch its IPO soon.
Who is the CEO of SFC Environmental Technologies Ltd?
Mandar Dinkar Desai is the CEO of SFC Environmental Technologies Ltd
From where can I read more about the IPO of SFC Environmental Technologies Ltd
You may read more about SFC Environmental Technologies Ltd and its IPO from the company’s draft red herring prospectus (DRHP) here.
