VA Tech Wabag Ltd to allot shares on preferential basis to marquee investors

The Board of Directors of VA Tech Wabag Ltd, at their Meeting held today, i.e. Tuesday, August 25, 2020, has considered and approved the issue of upto 75,00,000 Equity Shares ('Equity Shares'), on a Preferential Basis, at a price of INR 160/- per Equity Share (including a Premium of INR 158/- per Equity Share), which is higher than the price (hereinafter referred to as the 'SEBI Price') determined in accordance with Regulation 164 under Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended from time to time ('SEBI ICDR Regulations') for Cash aggregating to INR 120 Crore (Rupees One Hundred and Twenty Crore only), to Mrs. Rekha Rakesh Jhunjhunwala (50,00,000 shares), M/s. Basera Home Finance Private Limited (15,00,000 shares), Mrs. Sushma Anand Jain and Mr. Anand Jaikumar Jain (joint holding) (10,00,000 shares). The Relevant Date, in terms of the provisions of SEBI ICDR Regulations for determining the Price of the Equity Shares to be issued on a Preferential basis, is Monday, August 24, 2020.

Commenting on the above, Mr. Rajiv Mittal, MD & Group CEO, VA Tech Wabag said "We would like to extend a warm welcome to all the potential incoming investors, each of whom enjoy a high level of respect and credibility in the financial markets ecosystem. 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 to scale greater heights. We look forward to a long-term association with each of the potential incoming investors.

The company with its technology focus, asset light model and global presence is well positioned to consolidate its leadership in the Water Technology sector. In the backdrop of a growing awareness and need for Sustainable businesses, across the world, we believe that the Company is an ideal destination for global investors, especially for ESG focused investors."

Shares of VA TECH WABAG LTD. was last trading in BSE at Rs.227.3 as compared to the previous close of Rs. 216.05. The total number of shares traded during the day was 261692 in over 5942 trades.

The stock hit an intraday high of Rs. 231.5 and intraday low of 212.4. The net turnover during the day was Rs. 58308356.

Source : Equity Bulls

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