Nagpur-based clean-tech company, Rite Water Solutions (India), has filed its draft papers with the Securities and Exchange Board of India (SEBI) to raise INR 745 crore through an IPO. The IPO is backed by Water Access Acceleration Fund S.L.P. (W2AF), a fund managed by Incofin Investment Management in Belgium, and Ace Investor Mukul Agrawal.
Rite Water IPO Structure
Rite Water IPO comprises a fresh issue of equity shares worth INR 300 crore and an offer-for-sale (OFS) of INR 445 crore by promoter and investor-selling shareholders.
The offer-for-sale breakdown is as follows:
- INR 85 crore by Vinayak Shankarrao Gan
- INR 90 crore by Abhijeet Vinayak Gan
- INR 270 crore by Water Access Acceleration Fund S.L.P.
The company, in consultation with book-running lead managers (BRLMs), may consider a pre-IPO placement of up to INR 60 crore. If completed, this amount will be reduced from the fresh issue size.
Rite Water IPO – Utilization of Proceeds
The proceeds from the fresh issue will be primarily allocated as follows:
- INR 225 crore for funding the company’s working capital requirements
- The remaining amount is for general corporate purposes
About Rite Water Solutions (India)
Founded in 2004, Rite Water Solutions (India) has evolved from a water technology solutions provider into a leading clean-tech company. It offers water management solutions, solar agriculture solutions, and IoT-enabled systems, emphasizing rural sustainability and large-scale implementation. The company operates on an asset-light model, allowing it to scale efficiently with minimal capital expenditure.
Rite Water IPO – Financial Performance
According to a 1Lattice Report mentioned in the DRHP, the company ranks as the second fastest-growing firm in the water sector by revenue between Fiscal 2022 and Fiscal 2024. The company’s EBITDA margin increased from 11.32% in Fiscal 2022 to 34.77% in Fiscal 2024, showcasing operational efficiency and profitability growth.
Revenue and Profit Growth
- Fiscal 2024 Revenue: INR 202.75 crore (up 69.76% from INR 119.43 crore in Fiscal 2023)
- Fiscal 2024 Profit After Tax (PAT): INR 49.28 crore (up 96.95% from INR 25.02 crore in Fiscal 2023)
- Revenue for nine months ending 31 December 2024: INR 305.68 crore
- PAT for nine months ending 31 December 2024: INR 71.51 crore
As of 31 December 2024, Rite Water’s total order book stood at INR 1,723.13 crore.
Business Verticals & Offerings
Rite Water Solutions focuses on three major clean-tech segments:
- Water Solutions: Water and wastewater treatment, disinfection & purification systems, community water purification plants (CWPPs), and water supply schemes.
- Solar Agriculture Solutions: Solar irrigation pumps and solar cold storage systems.
- IoT Solutions: Digital monitoring applications for optimizing efficiency in water and energy management.
The company also provides operation and maintenance (O&M) services for projects across these verticals.
Rite Water is strategically positioned in high-growth sectors that are expected to expand at the following Compound Annual Growth Rates (CAGR) from Fiscal 2024 to Fiscal 2030:
- Water and wastewater treatment: 12.0% CAGR
- Solar pumps: 32.1% CAGR
- IoT industry: 20.5% CAGR
These sectors collectively represent a total addressable market of USD 37.1 billion (INR 3.25 trillion) in Fiscal 2024.
Government Partnerships & Rural Impact
Rite Water Solutions has collaborated with key government initiatives such as:
- Jal Jeevan Mission (JJM)
- PM Kusum Scheme
- National Mission for Clean Ganga (NMCG)
As of 31 December 2024, the company has impacted 21,800+ villages through its water purification, solar pumps, cold storage, and IoT-based energy and water management solutions. It has installed:
- 9,131 water purification systems, supplying 627.42 million litres of purified water daily across 6,990 villages.
- 8,736 solar pumps under the PM Kusum Scheme across 3,831 villages in Maharashtra and Rajasthan.
- 22 solar-based cold storage units in Maharashtra to support farmers.
- 250 water management schemes across 2,639 villages and 1,837 sub-stations to enhance water and energy efficiency.
Promoters & Leadership
The company is led by Vinayak S. Gan (Executive Chairman) and Abhijeet V. Gan (Managing Director & CEO), along with a highly experienced management team specializing in water, solar, and IoT sectors.
IPO Book Running Lead Managers
- Book Running Lead Managers (BRLMs): JM Financial and Axis Capital
- Registrar: Bigshare Services
Conclusion
With its strong financial performance, strategic market positioning, and high-growth sector focus, Rite Water Solutions (India) is well-prepared for its IPO. Its asset-light model, government partnerships, and emphasis on clean-tech solutions make it a promising player in India’s growing water, solar, and IoT industries. Investors looking for exposure to sustainable infrastructure and rural transformation may find Rite Water IPO an interesting opportunity.
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