Water Treatment Company VA Tech Wabag Jumps 30% in Mumbai Trading Debut
VA Tech Wabag Ltd., an Indian water treatment company, jumped as much as 30.4 percent in its Mumbai trading debut after receiving demand for 36 times the shares on sale in its initial public offering.
The stock, which started trading at 1,662 rupees, rose 397.95 rupees to 1,707.95 rupees at the 3:30 p.m. close in Mumbai. It rose as much as 37.9 percent to 1,806.8 rupees in intraday trading from the offer price of 1,310 rupees a share in an IPO last month.
The company, based in Chennai, designs and builds water and sewage treatment plants in India, the Middle East, North Africa, Central and Eastern Europe, China and South East Asia. The IPO raised 4.7 billion rupees ($105.6 million) from the sale of 954,198 new shares and 2.65 million by four existing investors.
Indian companies have raised about 114 billion rupees from 32 initial public offers since April. State-owned Coal India Ltd. plans to raise about 150 billion rupees next week in the nation’s biggest initial public offering.
Va Tech Wabag, which has 81 pending projects, posted a group profit of 494 million rupees on sales of 12.3 billion rupees in the year ended March 31, according to the company’s offer document.
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