Rakesh Jhunjhunwala makes new investment in VA Tech Wabag

 

Water management company VA Tech Wabag has raised Rs 120 crore from the sale of its equity shares. The company has achieved this at a time when many infrastructure management companies are struggling to recover from the effects of the lockdown caused by the coronavirus epidemic. The company had issued equity shares valued at Rs 160. Of the Rs 120 crore raised by VA Tech Wabag, Rs 80 crore has been invested by Rakesh Jhunjhunwala. At the same time, Basera Home Finance has invested Rs 24 crore and Jai Corporation promoter Anand Jain has invested Rs 16 crore. It is 10% of the total market capitalization of the company.

 

VA Tech Wabag provides water management solutions to municipalities and business houses. The company advises companies, large corporations and governmental organizations in the fields of water conservation, water recycling and reuse of water resources and resolves water-related problems. By March 2020, the company has received orders worth Rs 5947 crore.

 

Another special thing of VA Tech Wabag is that the net debt on this company is very less as compared to net worth. The company had net debt of Rs 482 crore as of March 2020. At the same time, the company had 320 crores in cash. The company's net worth at the end of the last financial year was Rs 1174 crore. In this era of Corona, there will be more emphasis on water treatment and sanitation, this can greatly benefit VA Tech Wabag.

 

In 2019, VA Tech Wabag's total income was Rs 194 crore, which increased to Rs 217 crore in 2020. Talking about profits, the company earned Rs 105 crore in FY 2019. At the same time, VA Tech Wabag had a profit of Rs 91 crore in 2020. The company has earned Rs 25 crore so far this financial year.