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SFC Environmental Technologies IPO: what the RHP actually says

5 days ago
5 min read

Updated: 1 day ago

By MonuKeer News Desk

SFC Environmental Technologies Ltd, a wastewater-treatment technology company based in Navi Mumbai, opens its IPO on Tuesday, 27 October 2026. This explainer sticks to what the company has filed with SEBI and announced publicly, in plain language.

The issue at a glance

Item

Detail

Price band

₹313 to ₹330 per share (Business Standard/PTI)

Total issue size

about ₹667.5 crore (Moneycontrol)

Fresh issue

₹150 crore (SEBI abridged prospectus, shown as ₹1,500 million)

Offer for sale (OFS)

up to 1,56,82,750 shares (same document); about ₹517.5 crore at the upper price band of ₹330 (our calculation: RHP share count 1,56,82,750 × ₹330 ÷ 1,00,00,000)

Anchor bidding

Monday, 26 October 2026

Issue opens / closes

27 October to 29 October 2026 (SEBI abridged prospectus)

Lot size

45 shares and multiples thereof (NSE IPO issue information, "Bid Lot")

Minimum application at upper band

₹14,850 (our calculation: 45 shares × ₹330)

Proposed listing

NSE and BSE, on or about Tuesday, 3 November 2026, per the RHP's indicative timetable (RHP); allotment is expected on or about 30 October

Lead managers

IIFL Capital Services, JM Financial, Nuvama Wealth Management

Under the RHP, not more than 50% of the offer is for qualified institutional buyers, not less than 15% for non-institutional investors and not less than 35% for retail investors (also reported by PTI in Business Standard). At the top of the price band, that report puts the company's valuation at about ₹3,233 crore.

So what does the company do?

SFC calls itself an "environmental technology company" working in wastewater treatment (WWT), wastewater recycling and reuse (WRR), and solid waste treatment (SWT).

In water, its main customers are EPC contractors who bid for sewage treatment and recycling projects awarded by municipalities and government agencies. In solid waste, its customers include Goa Waste Management Corporation and oil marketing companies. The company and its subsidiaries operate two integrated solid waste plants in North Goa and South Goa. They also have manufacturing facilities in Pune, Satara and Dombivli, plus one in the Czech Republic.

The filing says its technology has been used in 724 wastewater treatment plant installations on a cumulative basis as of 30 June 2026. It also says its technology has been delivered for WWT projects across 23 states and five Union Territories, as of 31 July 2026.

Source for this section: SEBI abridged prospectus.

Fresh issue vs OFS: where does the money go?

  • Fresh issue (₹150 crore): new shares are created and the money goes into the company.

  • Offer for sale (about ₹517.5 crore at the upper price band of ₹330, our calculation as above): existing shareholders sell part of their holding. The company does not receive this money. The prospectus says so plainly: the OFS proceeds "will not form part of the Net Proceeds."

So only about 22% of this IPO (₹150 crore of about ₹667.5 crore) is new money for the company (our calculation). The sellers include promoters Sandeep Sudhakar Asolkar (jointly with Priya Sandeep Asolkar) and Saketchandrasingh Pratapsingh Dhandoriya, plus other individual shareholders. For most of them, the prospectus gives a weighted average acquisition cost of ₹36.72 per share.

What the company plans to do with the fresh-issue money (from the "Objects of the Offer"):

  1. ₹422.28 million (about ₹42.2 crore) to prepay or repay some borrowings of the company and its wholly owned subsidiary, Vasudha Waste Treatment Pvt Ltd

  2. ₹749.17 million (about ₹74.9 crore) for working capital

  3. The rest for general corporate purposes, capped at 25% of the gross fresh-issue proceeds

The numbers, in plain words

All figures are restated consolidated numbers from the abridged prospectus, converted from ₹ million to ₹ crore.

₹ crore figures in this article are our calculation: ₹ million ÷ 10, rounded to one decimal.

Period

Revenue from operations

Profit after tax (consolidated, as per RHP)

FY24

₹657.5 cr

₹144.2 cr

FY25

₹697.9 cr

₹152.0 cr

FY26

₹803.6 cr

₹160.2 cr

Apr–Jun 2025 (Q1 FY26)

₹67.8 cr

loss of ₹0.3 cr

Apr–Jun 2026 (Q1 FY27)

₹133.9 cr

₹1.5 cr

Three things stand out:

  • Full-year margins have been steady. Operating EBITDA margin was 29.39%, 29.73% and 29.34% in FY24, FY25 and FY26.

  • The business is lumpy within the year. June-quarter revenue is far below a quarter of the annual total. In explaining its high June-quarter cash conversion cycle (411 days), the company cites the "seasonality and cyclicality" of its business and "the lower first-quarter revenue base".

  • The order book has grown. The total order book was ₹1,570.1 crore at 30 June 2026, compared with ₹1,073.6 crore a year earlier.

Total borrowings were ₹204.8 crore at 30 June 2026, compared with ₹67.6 crore at 30 June 2025. FY26 diluted EPS was ₹16.52. At ₹330, the upper end of the band is roughly 20 times that figure (our calculation: ₹330 ÷ ₹16.52 ≈ 20.0x, using pre-issue FY26 diluted EPS). This is arithmetic, not a valuation view.

Risks the company itself lists

From the top internal risk factors listed in the abridged prospectus:

  • Dependence on government spending. The prospectus puts government-linked work at 92.35% of WWT revenue in FY26. It was 100% of SWT revenue in each of the last three fiscal years.

  • Customer concentration. The top five customers made up 47.10% of revenue from operations in FY26 and 62.12% in the June 2026 quarter. The company says it gets a significant part of its revenue from its top 10 customers and does not have long-term contracts with most of them.

  • Cash flow. Operating cash flow was negative in FY24 and FY26 (about ₹-11.7 crore and ₹-25.8 crore) and positive in FY25.

  • Working capital. Working capital was 65.19% of revenue from operations in FY26. The cash conversion cycle was 242 days.

  • Technology risk. Revenue depends on its technologies staying relevant.

  • Records and litigation. The company says some corporate records and filings "are not traceable or have certain discrepancies". It also discloses material civil litigation, in Portugal and Austria, involving its Austrian subsidiary, SFC Umwelttechnik GmbH, and others. The RHP puts the aggregate amount involved at €6.25 million, or ₹666.87 million (about ₹66.7 crore) at the RBI rate of ₹106.70 per euro on 16 October 2026.

Before you read anything else about this IPO

The abridged prospectus is only a summary. The company itself says investors should refer to the full RHP on the SEBI, NSE and BSE websites. If you are new to how IPOs, demat accounts and allotment work, our beginner guide to stock market basics covers the foundations.

We do not report grey-market premium figures, which are unofficial and unregulated.

Sources

Facts verified as of 23 Oct 2026, 1:35 AM IST.

Reported by the MonuKeer News Desk. Edited by Monu Keer, Founder & Editor.

Education only. Not investment advice.

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