Mumbai-based SFC Environmental Technologies Ltd, a wastewater and solid waste management solutions provider, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO).
The IPO comprises a fresh issue of shares worth up to Rs 150 crore and an offer-for-sale (OFS) of 12,307,500 shares by promoters and other selling shareholders. Promoters Sandeep Sudhakar Asolkar and Saketchandrasingh Pratapsingh Dhandoriya are among those offloading stakes, along with several other shareholders. A reservation for eligible employees with a discount has also been proposed.
Proceeds from the fresh issue will be used to prepay borrowings (Rs 47.46 crore) and meet working capital needs (Rs 69.67 crore). The company may also consider a pre-IPO placement of up to Rs 30 crore, which would reduce the size of the fresh issue.
The IPO will follow the book-building route, with up to 50 per cent reserved for qualified institutional buyers (QIBs), at least 15 per cent for non-institutional investors (NIIs) and 35 per cent for retail investors. IIFL Capital Services, JM Financial and Nuvama Wealth Management are the book-running lead managers, while MUFG Intime India is the registrar. The equity shares are proposed to be listed on both BSE and NSE.
Founded in 2005, SFC Environmental Technologies is known for its proprietary C-Tech sequencing batch reactor (SBR) technology, a leading wastewater treatment method. As of March 31, 2025, it had 639 installations across India, enabling treatment of 15,209.45 million litres per day of wastewater. The company commands an 80 per cent market share in SBR technology in India, according to a Frost & Sullivan report.
In the solid waste treatment space, SFC operates two integrated facilities in Goa under a public-private partnership, with a combined capacity of 425 tonnes per day. Its proprietary OREX technology separates biodegradable organics from mixed municipal waste. Additionally, it runs an agro-based biogas plant in Punjab and a C-Mem Hollow Fibre facility in the Czech Republic.
Financially, the company reported revenues of Rs 697.8 crore in FY25, growing at a 15.9 per cent CAGR since FY23 and a net profit of Rs 152 crore, reflecting a 27.2 per cent CAGR. Its order book stood at Rs 560.3 crore as of March 2025.