WABAG enters into Non-Binding Equity Partnership of USD 100 Million with an Investor Consortium including Norfund

VA TECH WABAG ('WABAG'), a leading pure-play water technology Indian Multinational Group, is pleased to announce the signing of non-binding term sheet for a dedicated platform ('Municipal Platform') to focus on the development of Capital Projects for the Municipal Sector. The Municipal Platform will commit equity investment of up to USD 100 Million in capital projects over a 3 to 5 years period.

The Municipal Platform will be established in collaboration with an Investor Consortium including Norfund and two other international investors, Norfund is the Norwegian Government's investment fund dedicated to supporting sustainable development.

WABAG will play a pivotal role in the platform as the Technical Partner, delivering EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance) services. WABAG will also make a minority investment in the platform, consistent with its Asset-Light Strategy.

The proposed platform will focus on leveraging the combined expertise and resources of WABAG and its partners to address the growing demand for advanced water treatment technologies and infrastructure. By uniting capabilities, the platform will target key opportunities in municipal sector, supporting sustainable water management and contributing to economic development.

The term-sheet outlines the framework for collaboration and represents an important step toward formalizing the partnership to accelerate the delivery of transformative projects in key regions. The establishment of this platform reflects WABAG's ongoing dedication to maintaining its core focus on the water sector and fostering growth through strategic financial partnerships. Further updates regarding this collaboration will be provided as progress is made towards the definitive agreements.

Commenting on this key development, Mr. S. Varadarajan, Whole-time Director & Chief Growth Officer said, "This step of signing the term-sheet with strong global partners to establish the Municipal platform underscores our commitment to addressing global water challenges by leveraging cutting-edge technology and expertise. This initiative reflects our asset-light strategy, emphasizing partnerships that combine WABAG's technical excellence with the financial strengths of our collaborators to accelerate impactful and sustainable water solutions."

Shares of VA Tech Wabag Limited was last trading in BSE at Rs. 1387.25 as compared to the previous close of Rs. 1393.00. The total number of shares traded during the day was 13144 in over 860 trades.

The stock hit an intraday high of Rs. 1431.00 and intraday low of 1377.60. The net turnover during the day was Rs. 18370219.00.

Source : Equity Bulls

Keywords

VATechWabag INE956G01038 NonBinding EquityPartnership InvestorConsortium MunicipalPlatform