Mumbai-based SFC Environmental Technologies files DRHP for IPO

Mumbai-based environmental technology company involved in wastewater treatment and solid waste treatment company; SFC Environmental Technologies has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

 The offer, with a face value of Rs 2, is a mix of fresh issue of shares up to Rs 150 crore and an offer-for-sale up to 12,307,500 shares by promoters and other selling shareholders. The promoters selling shares are Sandeep Sudhakar Asolkar and Saketchandrasingh Pratapsingh Dhandoriya.  Other selling shareholders are Sarvesh Kumar Garg, Sandeep Sambhaji Parab, Rajesh Kesavan Nambisan, Veera Venkata Satyanarayana Yannamani, Jaya Chandrakant Gogri, Jayshree Harit Shah, Hardik Suresh Matalia, Parag Bipinchandra Shah and Kumaraguru Madurakavi.

The offer also includes a subscription reservation by eligible employees, and a discount is being offered to eligible employees bidding in the employee reservation portion.

The proceeds from its fresh issuance worth Rs 47.46 crore will be utilised for prepayment of all or a certain borrowings of the company and its wholly owned subsidiary, Vasudha Waste Treatment Private Limited.  And Rs 69.67 crore will be utilised for working capital requirements.

The company, in consultation with the book-running lead managers, may consider a pre-IPO placement, aggregating up to Rs 30 crore. The pre-IPO placement if completed, the fresh issue size will be reduced.

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 more than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively. 

Incorporated in 2005, SFC Environmental Technologies offers proprietary technology for waste water treatment (WWT),  C-Tech, which is an advanced technology for treating sewage and effluents (Source: F&S Report). And with 639 installations in the WWT segment, as of March 31, 2025, particularly in sewage treatment plants (STPs), the company holds over 80% market share in sequencing batch reactor (SBR) technology, a key wastewater treatment method in India (Source: F&S Report). The company’s technologies facilitate the treatment of 15,209.45 million litres per day (MLD) of wastewater, as of March 31, 2025 (Source: F&S Report).

The company is among the market leaders in the municipal solid waste space

solutions (Source: F&S Report). Its principal technology for solid waste treatment is its proprietary Organic Extraction (“OREX”) technology, designed to efficiently separate biodegradable organics from inorganic materials and lignocellulosic fibres from mixed municipal waste (Source: F&S Report).

As of 31 March 2025, the company has designed, built and operating two integrated (Solid waste treatment) SWT facilities in Goa for the Goa Waste Management on public-private partnership with a combined capacity of 425 tonnes per day.

The company also operates a moving arm decanter with an installed capacity of 210 meters per day, diffusion assembly and aeration piping facility with a capacity of 10, 000 numbers  per month. The company also has a turbo blower assembly with a capacity of 30 numbers per year, and a facility for manufacture of electronic panels, boards with a capacity of 5,500 numbers.

The company also operates an agro-based biogas plant in Hoshiarpur, Punjab, which converts biomass into biogas, which is then used to generate electricity and supply to the grid. And in the Czech Republic the company  has a facility for making C-Mem Hollow Fibre with a capacity of 6000 pieces.

The company’s revenue from operations of Rs 697.8 crore during Fiscal 2025 grew at a CAGR of 15.9% from Fiscal 2023. The company benefited from its increased sale of services for waste water treatment and solid waste segment.

The company derived 85.2 % of its revenue from operations during Fiscal 2025 from its existing customers. The company’s customer list includes SMC Infrastructures Private Limited, Rajkamal Builders Infrastructure Private Limited, Ramky Infrastructure Private Limited, EMS Limited, Enviro Infra Engineers Ltd and Girdhari Lal Aggarwal Contractors.

Its net profit of Rs 152 crore during Fiscal 2025 grew at a CAGR of 27.2 % from Fiscal 2023.

The company’s order book for waste water treatment was Rs 459.7 crore at the end of 31 March, 2025 and Rs 100.6 crore for sewage waste treatment at the end of 31 March, 2025.

IIFL Capital Services Limited, JM Financial Limited,  and Nuvama Wealth Management Limited,  are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.