SFC Environmental Technologies Ltd IPO
Status: Current
Overview
IPO date
27 Oct 2026 to 29 Oct 2026
Face value
₹ 2 per share
Price
₹ 313 to ₹330 per share
Issue Size
20,228,204 shares
(aggregating up to ₹ 667.53 Cr)
(aggregating up to ₹ 667.53 Cr)
Allotment Date
30 Oct 2026
Listing at
NSE
Issue type
Book Building
Sector
Miscellaneous
Unlock Stock of the Month
T&C*
Strengths vs Risks of SFC Environmental Technologies Ltd
Know the pros & cons
Strengths
- Technology driven market leadership as a key player in the wastewater treatment market.
- Vertical integration through constant innovation and use of technology.
- Well-positioned to capture market opportunities in the solid waste treatment segment.
- High proportion of repeat business with strong order book.
- Track record of consistent performance and strong financial profile.
- Proven management experience and leadership.
Risks
- The company's revenues and operations are dependent upon technology. Failures of these technologies, failures to upgrade or innovate these technologies or failures to identify and develop new technologies could have an adverse impact on the company's results of operations. The company's products may be displaced by newer technology and any inability or failures to adapt to technological developments, the evolving competitive landscape or industry trends could harm the company's business and competitiveness.
- The company derives a substantial portion of its revenues from the WWT and SWT segments which together accounted for 88.22%, 84.98%, 84.34% and 87.40% of the company's consolidated revenue from operations in the three months period ended June 30, 2026, Fiscals 2026, 2025 and 2024, respectively. The company is significantly dependent on projects, contracts or works awarded or funded by government entities, either directly or through its private customers. The company's revenue from operations directly or indirectly attributable to government entities or government tenders represented 91.97%, 92.35%, 92.40% and 95.72% of its consolidated revenue from the WWT segment for the three months period ended June 30, 2026, Fiscals 2026, 2025 and 2024, respectively and 100.00% in the three months period ended June 30, 2026 and 100.00% of the company's consolidated revenue from SWT segment for each of the Fiscals 2026, 2025 and 2024. Any reduction or termination in such projects or adverse change in government policies could adversely affect its business, results of operations and financial condition.
- The company derives a significant part of its revenue from the company's top 10 customers and the company does not have long term contracts with most of these customers. If one or more of such customers choose not to source their requirements from the company or to terminate its long-term contracts, the company's business, results of operations and financial condition may be adversely affected.
- Any failures to comply with trade restrictions such as economic sanctions and export controls or with antibribery and anti-corruption frameworks instituted by government authorities or international organizations, such as multilateral development banks, may restrict the company's ability to participate in projects, and could negatively impact its reputation and results of operations.
- The company has had negative cash flows from operating activities in the certain past periods / fiscals and may continue to have negative cash flows in the future.
- The company's business has grown, including its revenue from operations that has grown at a CAGR of 10.56% from Rs.6,574.95 million in Fiscal 2024 to Rs.8,036.29 million in Fiscal 2026, and the company may fails to manage its growth effectively.
- Certain of the company's corporate records and filings are not traceable or have certain discrepancies. Its cannot assure you that regulatory proceedings or actions will not be initiated against the company in the future and its will not be subject to any penalty imposed by the competent regulatory authority in this regard.
- The Company is involved in certain legal proceedings. Any adverse decision in such proceedings may render the company liable to liabilities / penalties and may adversely affect its business, financial condition, results of operations and cash flows.
- The company's Subsidiaries, Hindustan Waste Treatment Private Limited, Vasudha Waste Treatment Private Limited, Fine Aeration Systems Private Limited and Pentagen Biofuels Private Limited, Sustainyx Smart Solution Private Limited (formerly Navitas Waste Treatment Private Limited) and SFC Umwelttechnik GmbH have availed unsecured loans from the Company that may be recalled at any time and the Subsidiaries may not have adequate funds to make timely payments or at all.
- The company has high working capital requirements, and may requires additional financing to meet those requirements, which could have a material adverse effect on its results of operations, cash flows and financial condition. The working capital as a percentage of total revenue from operations was 561.06%, 65.19%, 63.51% and 39.94% for the three months period ended June 30, 2026 and Fiscals 2026, 2025 and 2024, respectively.
- The Company has experienced an increase in its cash conversion cycle and may experience longer cash conversion cycles in the future.
- The company requires substantial capital expenditure / investment and working capital requirements in relation to its SWT business operations and may requires additional financing including working capital to meet those requirements, which could have a material adverse effect on the company's results of operations, cash flows and financial condition.
- The company's Subsidiaries, SFC Umwelttechnik GmbH, Hindustan Waste Treatment Private Limited ("HWTPL") and Vasudha Waste Treatment Private Limited ("VWTPL") have been, and continue to be, involved in material legal proceedings or have received show cause notices from statutory or regulatory authorities, and an adverse outcome in any such matters may expose them to financial liabilities.
- Delays in receiving payment of outstanding dues from third parties may affect the company's financial condition and results of operations. The Company experienced an increase in trade receivable days from 197 days as on March 31, 2024, to 262 days as on March 31, 2025, to 282 days as on March 31, 2026 and to 443 days as on June 30, 2026.
- The company has certain contingent liabilities which, if materialized, may adversely affect its financial condition.
- The company depends on a few suppliers for the supply of majority of its raw materials and the company does not have continuing and exclusive supply agreements with all of them. Any interruptions in the supply of raw materials, fluctuations in raw material prices or any failures by the company's suppliers to make timely delivery of raw materials could adversely affect its business, results of operations and financial conditions.
- The assets the company operates, and the handling and treatment of waste expose it to safety, operational and other risks, including the risk of personal injury to the company's employees or third parties. Failures to limit its exposure to such risks may subject the company to significant disruptions in its business, legal and regulatory actions, costs, and liabilities and could have an adverse impact on the company's results of operations.
- Failures by third parties to supply, manufacture or deliver materials and components according to schedules, prices, quality, and volumes that are acceptable to the company, or its inability to manage these materials and parts effectively may lead to delays in delivery of technology solutions to the company's customers, resulting in an adverse effect on its business, sales, and the company's ability to retain and expand its base of customers.
- The SWT projects the company operates have been awarded primarily through competitive bidding process and its bids may not always be accepted. The company may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations. Further, the company's ability to negotiate the standard form of contracts for its projects may be limited and certain unusual or onerous provisions may be imposed on the company, which may restrict its flexibility in undertaking the company's business and thereby affect the efficient execution and profitability of its projects.
- Under-utilization of the company's manufacturing and installed waste treatment capacities, and an inability to effectively utilize its current capacities could have an adverse effect on the company's business, prospects and future financial performance.
- Orders in the company order book may be delayed, modified or cancelled, which may have an adverse impact on its business, results of operations and cash flows.
- The company has incurred indebtedness and are required to comply with certain restrictive covenants under its financing agreements. Any non-compliance may lead to, amongst others, accelerated repayment schedule, enforcement of security and suspension of further drawdowns, which may adversely affect the company's business, results of operations, financial condition and cash flows.
- The company has experienced delays in payment of certain statutory dues including employee state insurance corporation contributions, provident fund contributions and income tax payments in the past.
- The company's Directors and Promoters may enters into ventures which are in businesses similar to the company.
- The company has entered, and will continue to enters, into related party transactions which may involve conflicts of interest. Further, the company's Promoters, Directors and Key Managerial Personnel have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.
- In addition to the existing indebtedness availed by the company's Subsidiary, Vasudha Waste Treatment Private Limited ("VWTPL"), it may incur further indebtedness during its business operations and there can be no assurance that it will be able to service the existing and/or additional indebtedness.
- The success of the company's business operations is dependent on its key managerial personnel, including the company's senior management as well as its ability to attract, train and retain such employees. If the company lose key members of its management team or are unable to attract and retain executives, key personnel and employees the company need to support its operations and growth, the company's business and future growth prospects may be harmed.
- Failures to effectively treat emerging contaminants or failures of the company's treatment systems or spills causing discharge of untreated or partially treated wastes can lead to various damages including environmental damage and thereby adversely affect its business, financial condition, results of operations or prospects.
- The company's facilities are dependent on adequate and uninterrupted supplies of electricity, water and fuel; shortage or disruption in electricity, water or fuel supplies may lead to disruption in operations, higher operating cost and consequent decline in operating margins.
- The company has undertaken, and may continue to undertake, strategic acquisitions, joint ventures and investments, which may not perform in line with its expectations or may be prone to other contingencies.
- The launch of the company's new business segment i.e. wastewater recycling & reuse ("WRR"), if proven to be unsuccessful could affect its growth plans which could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company's SWT business largely depends on governmental agencies (including oil marketing companies) and the loss of such business or a termination / non-renewal of contracts by such government agencies (including oil marketing companies) will have a significantly adverse impact on its business. The changes in government priorities, budget constraints, or changes in policy related to Wastewater treatment and Solid Waste Treatment could adversely affect the company's overall business and results of operations.
- The objects of the Fresh Issue include funding working capital requirements, which is based on certain assumptions and estimates. Any failures in arranging adequate working capital for the company operations may adversely affect its business, results of operations, cash flows and financial conditions.
- The company is subject to certain obligations under its agreements with the company's customers, and a failures to comply with the specifications prescribed under such agreements may lead to loss of business from such customers, invocation of its warranty claims and indemnity obligations, and could negatively impact the company's reputation, business prospects, cash flows and results of operations.
- The company may be liable for the non-performance of its consortium or joint venture partners.
- Certain of the company's immovable properties, where some of its manufacturing units are located, are leased. If the company is unable to renew existing leases or relocate its operations on commercially reasonable terms, there may be an adverse effect on the company's business, financial condition and operations.
- The company's Statutory Auditors have included certain remarks (not in the nature of qualifications) in their Independent Auditors Report on the Consolidated Financial Statement and Standalone Financial Statement for financial years ended March 31, 2026, March 31, 2025 and March 31, 2024. There can be no assurance that any similar remarks will not form part of the company's financial statements for the future fiscal periods.
- The company failures to raise additional capital or generates cash flows necessary to expand its operations and invest in new technologies in the future could reduce the company's ability to compete successfully and harm its results of operations or cause the company to curtail or cease its operations.
- The company's actual cost in executing an SWT contract may vary substantially from the assumptions underlying its bid. The company may be unable to recover all or some of the additional expenses, which may have an adverse effect on its business, financial condition, results of operations, and prospects.
- The company's employ a significant number of personnel in its business operations which are a substantial part of the company's total expenses and are susceptible to risks relating to compliance with labour laws and its operations could be adversely affected by labour shortages, strikes, work stoppages or increased wage demands by the company's employees or any other kind of disputes with its employees.
- The company is exposed to significant cost variations on fixed-rate contracts.
- The company is dependent on R&D for its future success. While the company does not have any formal R&D programme in place currently, if the company does not successfully develop new products or continue its product portfolio expansion in a timely and cost-effective manner, the company's business, financial condition, cash flows and results of operations may be adversely affected.
- Information relating to capacity utilization of the company's manufacturing facilities and operational plants included in this Red Herring Prospectus are based on various assumptions and estimates. Underutilization of the company's capacities and an inability to effectively utilize such capacities may have an adverse effect on its business and future financial performance.
- The company's WWT operations in India experience seasonality, and any disruptions or underperformance during seasonal periods could negatively affect its results of operations and financial condition.
- The company's growth may be negatively impacted by macroeconomic factors.
- The company's business and prospects may be adversely affected by negative publicity or damage to its reputation.
- In the event the company fails to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required to operates the company's business, including due to any default on the part of the owners of the properties its lease, the company's business, cash flows and results of operations may be adversely affected.
- The company's inability to protect or use its intellectual property rights may adversely affect the company's business. Its may also unintentionally infringe upon the intellectual property rights of others, any misappropriation of which could harm the company's competitive position.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on its business growth and prospects, financial condition and results of operations. Further, if the company's competitors are able to improve the efficiency of their manufacturing processes and thereby offer their products at lower prices, its revenues and profitability may decline.
- Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by Frost & Sullivan (India) Private Limited ("F&S"), exclusively commissioned and paid for by the Company for the purpose of this Offer.
- The information included in this Red Herring Prospectus in relation to the company's listed peers may not be comparable and it may be difficult to benchmark and evaluate its financial performance against other operators who operates in the same industry as the company.
- The company's Promoters, Sandeep Sudhakar Asolkar and Priya Sandeep Asolkar have provided personal guarantees for the lending facilities availed by the Company, its Subsidiaries, Hindustan Waste Treatment Limited ("HWTPL") & Pentagen Biofuels Private Limited ("PBPL") and the company's Promoter Group entity, Asolkar Tradecraft Private Limited ("ATPL"). The Promoters may provide additional guarantees in the future and any failures or default in repaying such loans could trigger repayment obligations on the company's Promoters, which may also impact its Promoters ability to effectively service their obligations as the company's Promoters and thereby, adversely impact its business and operations.
- The company's insurance coverage may not be adequate to protect it against all potential losses, which may have a material adverse effect on the company's business, financial condition, cash flows and results of operations.
- Failures or disruption of the company's IT systems, or cybersecurity breaches or similar disruptions, may adversely affect its business, financial condition, results of operations and prospects.
- The company failures to keep its technical knowledge confidential could erode the company's competitive advantage.
- The company conduct transactions in foreign currencies and are exposed to risks associated with foreign exchange rate fluctuations.
- The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a downgrade of the company's rating may restrict its access to capital and thereby adversely affect the company's business and results of operations.
- The company relies on contract labour for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on the company's results of operations, cash flows and financial condition.
- The company has presented certain supplemental information of its performance and liquidity which is not prepared under or required under Ind AS.
- The company cannot assure payment of dividends on the Equity Shares in the future.
- The company is exposed to a variety of risks associated with safety, security and crisis management.
- The company will not receive any proceeds from the Offer for Sale portion.
- The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of the company's Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders approval.
- The company may not be able to derives the expected benefits of the deployment of the Net Proceeds, in a timely manner, or at all.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders approval.
- The company's Promoters will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise influence over the company.
- This Red Herring Prospectus also contains forward-looking statements that involve risks and uncertainties where actual results could materially differ from those anticipated in these forward-looking statements.
SFC Environmental Technologies Ltd Peer Comparison
Understand the company’s industry standing
SFC Environmental Techs. Ltd.
Thermax Ltd
Praj Industries Ltd
Face Value
2
2
2
Standalone / Consolidated
Standalone
Consolidated
Consolidated
Total Income Rs. Cr.
803.63
10694.15
3167.88
EPS-Basis
16.52
63.95
1.3
EPS-Diluted
16.52
63.94
1.3
NAV Per Share
86.09
492.55
71.22
P/E-Basic EPS
---
52.01
220.77
P/E-Diluted EPS
---
---
---
RONW(%)
21.25
13.74
1.77
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 27 Oct 2026 & closes on 29 Oct 2026.
SFC Environmental Technologies is an environmental technology company offering efficient technologies and comprehensive engineering solutions in the field of wastewater treatment and solid waste treatment. The core operations include providing design, technology, manufacturing, supply and supervision for installation and commissioning of equipment for the treatment of wastewater. Additionally, Company offers technology solutions for SWT plants comprising of design, engineering, financing, construction, supply and installation, commissioning, performance run, turnkey solutions and operations and maintenance.
The principal technology for solid waste treatment is the Organic Extraction, designed to efficiently separate biodegradable organics from inorganic materials and lignocellulosic fibres from mixed municipal waste. The Company has designed, built and is operating two integrated SWT facilities in Goa for the Goa Waste Management Corporation (GWMC) on a publicprivate partnership and turnkey model, with a combined treatment capacity of 350 tons per day (TPD), with an additional handling capacity of 75 TPD resulting in aggregate treatment capacity of up to 425 TPD, to treat municipal solid waste, enabling generation of biogas, compost and recovery of recyclables.
SFC Environmental Technologies Limited was incorporated as SFC Environmental Technologies Private Limited' at Mumbai, Maharashtra as a Private Limited Company dated March 29, 2005, issued by the RoC. Thereafter, the status converted from a Private Limited to Public Limited, and the name of the Company was changed to SFC Environmental Technologies Limited', and a fresh Certificate of Incorporation dated August 13, 2024 was issued to Company by the Registrar of Companies, Central Processing Centre.
In year 2008, Company acquired majority stake in SFC Umwelttechnik GmbH, Austria; acquired majority stake in Chavare Engineering Private Limited which provides electrical and automation solutions in 2011. The Company incorporated Hindustan Waste Treatment Private Limited in North Goa in 2014. It commenced operations in integrated MSW processing facility with capacity of 100 TPD North Goa facility under Hindustan Waste Treatment Private Limited in 2016. In 2022, the Company commenced decanter manufacturing unit in Pune. Fine Aeration Systems Private Limited was incorporated as a subsidiary in 2022 to enabling the manufacturing of diffusers in India. The Company further expanded the capacity of integrated MSW processing facility in North Goa from 100 TPD to 250 TPD in 2023. It further started production of 100 TPD capacity integrated MSW processing facility at South Goa, in 2023; further incorporated Pentagen Biofuels Private Limited as a subsidiary for agro-based CBG plants. In 2023, Company has strategically expanded portfolio by entering the agro-based biogas / compressed biogas projects.
The Company is planning an IPO by raising funds aggregating to Rs 185 Crore Fresh Issue of Equity Shares and by issuing 10,824,790 Equity Shares of Face Value of Rs 2 each thru' Offer for Sale.
SFC Environmental Technologies Ltd IPO will close on 29 Oct 2026.
- Technology driven market leadership as a key player in the wastewater treatment market.
- Vertical integration through constant innovation and use of technology.
- Well-positioned to capture market opportunities in the solid waste treatment segment.
- High proportion of repeat business with strong order book.
- Track record of consistent performance and strong financial profile.
- Proven management experience and leadership.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Sandeep Sudhakar Asolkar | 13500000 | 14.45 | 13500000 | 13.78 |
| 2 | Sandeep Sudhakar Asolkar (hel | 17388498 | 18.61 | 16454498 | 16.8 |
| 3 | Saketchandrasingh Pratapsingh | 8434125 | 9.03 | 4698125 | 4.8 |
| 4 | Asolkar Tradecraft Private Li | 2917713 | 3.12 | 2917713 | 2.98 |
| 5 | Bhushan Raju Naik | 13500 | 0.01 | 13500 | 0.01 |
- The company's revenues and operations are dependent upon technology. Failures of these technologies, failures to upgrade or innovate these technologies or failures to identify and develop new technologies could have an adverse impact on the company's results of operations. The company's products may be displaced by newer technology and any inability or failures to adapt to technological developments, the evolving competitive landscape or industry trends could harm the company's business and competitiveness.
- The company derives a substantial portion of its revenues from the WWT and SWT segments which together accounted for 88.22%, 84.98%, 84.34% and 87.40% of the company's consolidated revenue from operations in the three months period ended June 30, 2026, Fiscals 2026, 2025 and 2024, respectively. The company is significantly dependent on projects, contracts or works awarded or funded by government entities, either directly or through its private customers. The company's revenue from operations directly or indirectly attributable to government entities or government tenders represented 91.97%, 92.35%, 92.40% and 95.72% of its consolidated revenue from the WWT segment for the three months period ended June 30, 2026, Fiscals 2026, 2025 and 2024, respectively and 100.00% in the three months period ended June 30, 2026 and 100.00% of the company's consolidated revenue from SWT segment for each of the Fiscals 2026, 2025 and 2024. Any reduction or termination in such projects or adverse change in government policies could adversely affect its business, results of operations and financial condition.
- The company derives a significant part of its revenue from the company's top 10 customers and the company does not have long term contracts with most of these customers. If one or more of such customers choose not to source their requirements from the company or to terminate its long-term contracts, the company's business, results of operations and financial condition may be adversely affected.
- Any failures to comply with trade restrictions such as economic sanctions and export controls or with antibribery and anti-corruption frameworks instituted by government authorities or international organizations, such as multilateral development banks, may restrict the company's ability to participate in projects, and could negatively impact its reputation and results of operations.
- The company has had negative cash flows from operating activities in the certain past periods / fiscals and may continue to have negative cash flows in the future.
- The company's business has grown, including its revenue from operations that has grown at a CAGR of 10.56% from Rs.6,574.95 million in Fiscal 2024 to Rs.8,036.29 million in Fiscal 2026, and the company may fails to manage its growth effectively.
- Certain of the company's corporate records and filings are not traceable or have certain discrepancies. Its cannot assure you that regulatory proceedings or actions will not be initiated against the company in the future and its will not be subject to any penalty imposed by the competent regulatory authority in this regard.
- The Company is involved in certain legal proceedings. Any adverse decision in such proceedings may render the company liable to liabilities / penalties and may adversely affect its business, financial condition, results of operations and cash flows.
- The company's Subsidiaries, Hindustan Waste Treatment Private Limited, Vasudha Waste Treatment Private Limited, Fine Aeration Systems Private Limited and Pentagen Biofuels Private Limited, Sustainyx Smart Solution Private Limited (formerly Navitas Waste Treatment Private Limited) and SFC Umwelttechnik GmbH have availed unsecured loans from the Company that may be recalled at any time and the Subsidiaries may not have adequate funds to make timely payments or at all.
- The company has high working capital requirements, and may requires additional financing to meet those requirements, which could have a material adverse effect on its results of operations, cash flows and financial condition. The working capital as a percentage of total revenue from operations was 561.06%, 65.19%, 63.51% and 39.94% for the three months period ended June 30, 2026 and Fiscals 2026, 2025 and 2024, respectively.
- The Company has experienced an increase in its cash conversion cycle and may experience longer cash conversion cycles in the future.
- The company requires substantial capital expenditure / investment and working capital requirements in relation to its SWT business operations and may requires additional financing including working capital to meet those requirements, which could have a material adverse effect on the company's results of operations, cash flows and financial condition.
- The company's Subsidiaries, SFC Umwelttechnik GmbH, Hindustan Waste Treatment Private Limited ("HWTPL") and Vasudha Waste Treatment Private Limited ("VWTPL") have been, and continue to be, involved in material legal proceedings or have received show cause notices from statutory or regulatory authorities, and an adverse outcome in any such matters may expose them to financial liabilities.
- Delays in receiving payment of outstanding dues from third parties may affect the company's financial condition and results of operations. The Company experienced an increase in trade receivable days from 197 days as on March 31, 2024, to 262 days as on March 31, 2025, to 282 days as on March 31, 2026 and to 443 days as on June 30, 2026.
- The company has certain contingent liabilities which, if materialized, may adversely affect its financial condition.
- The company depends on a few suppliers for the supply of majority of its raw materials and the company does not have continuing and exclusive supply agreements with all of them. Any interruptions in the supply of raw materials, fluctuations in raw material prices or any failures by the company's suppliers to make timely delivery of raw materials could adversely affect its business, results of operations and financial conditions.
- The assets the company operates, and the handling and treatment of waste expose it to safety, operational and other risks, including the risk of personal injury to the company's employees or third parties. Failures to limit its exposure to such risks may subject the company to significant disruptions in its business, legal and regulatory actions, costs, and liabilities and could have an adverse impact on the company's results of operations.
- Failures by third parties to supply, manufacture or deliver materials and components according to schedules, prices, quality, and volumes that are acceptable to the company, or its inability to manage these materials and parts effectively may lead to delays in delivery of technology solutions to the company's customers, resulting in an adverse effect on its business, sales, and the company's ability to retain and expand its base of customers.
- The SWT projects the company operates have been awarded primarily through competitive bidding process and its bids may not always be accepted. The company may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations. Further, the company's ability to negotiate the standard form of contracts for its projects may be limited and certain unusual or onerous provisions may be imposed on the company, which may restrict its flexibility in undertaking the company's business and thereby affect the efficient execution and profitability of its projects.
- Under-utilization of the company's manufacturing and installed waste treatment capacities, and an inability to effectively utilize its current capacities could have an adverse effect on the company's business, prospects and future financial performance.
- Orders in the company order book may be delayed, modified or cancelled, which may have an adverse impact on its business, results of operations and cash flows.
- The company has incurred indebtedness and are required to comply with certain restrictive covenants under its financing agreements. Any non-compliance may lead to, amongst others, accelerated repayment schedule, enforcement of security and suspension of further drawdowns, which may adversely affect the company's business, results of operations, financial condition and cash flows.
- The company has experienced delays in payment of certain statutory dues including employee state insurance corporation contributions, provident fund contributions and income tax payments in the past.
- The company's Directors and Promoters may enters into ventures which are in businesses similar to the company.
- The company has entered, and will continue to enters, into related party transactions which may involve conflicts of interest. Further, the company's Promoters, Directors and Key Managerial Personnel have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.
- In addition to the existing indebtedness availed by the company's Subsidiary, Vasudha Waste Treatment Private Limited ("VWTPL"), it may incur further indebtedness during its business operations and there can be no assurance that it will be able to service the existing and/or additional indebtedness.
- The success of the company's business operations is dependent on its key managerial personnel, including the company's senior management as well as its ability to attract, train and retain such employees. If the company lose key members of its management team or are unable to attract and retain executives, key personnel and employees the company need to support its operations and growth, the company's business and future growth prospects may be harmed.
- Failures to effectively treat emerging contaminants or failures of the company's treatment systems or spills causing discharge of untreated or partially treated wastes can lead to various damages including environmental damage and thereby adversely affect its business, financial condition, results of operations or prospects.
- The company's facilities are dependent on adequate and uninterrupted supplies of electricity, water and fuel; shortage or disruption in electricity, water or fuel supplies may lead to disruption in operations, higher operating cost and consequent decline in operating margins.
- The company has undertaken, and may continue to undertake, strategic acquisitions, joint ventures and investments, which may not perform in line with its expectations or may be prone to other contingencies.
- The launch of the company's new business segment i.e. wastewater recycling & reuse ("WRR"), if proven to be unsuccessful could affect its growth plans which could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company's SWT business largely depends on governmental agencies (including oil marketing companies) and the loss of such business or a termination / non-renewal of contracts by such government agencies (including oil marketing companies) will have a significantly adverse impact on its business. The changes in government priorities, budget constraints, or changes in policy related to Wastewater treatment and Solid Waste Treatment could adversely affect the company's overall business and results of operations.
- The objects of the Fresh Issue include funding working capital requirements, which is based on certain assumptions and estimates. Any failures in arranging adequate working capital for the company operations may adversely affect its business, results of operations, cash flows and financial conditions.
- The company is subject to certain obligations under its agreements with the company's customers, and a failures to comply with the specifications prescribed under such agreements may lead to loss of business from such customers, invocation of its warranty claims and indemnity obligations, and could negatively impact the company's reputation, business prospects, cash flows and results of operations.
- The company may be liable for the non-performance of its consortium or joint venture partners.
- Certain of the company's immovable properties, where some of its manufacturing units are located, are leased. If the company is unable to renew existing leases or relocate its operations on commercially reasonable terms, there may be an adverse effect on the company's business, financial condition and operations.
- The company's Statutory Auditors have included certain remarks (not in the nature of qualifications) in their Independent Auditors Report on the Consolidated Financial Statement and Standalone Financial Statement for financial years ended March 31, 2026, March 31, 2025 and March 31, 2024. There can be no assurance that any similar remarks will not form part of the company's financial statements for the future fiscal periods.
- The company failures to raise additional capital or generates cash flows necessary to expand its operations and invest in new technologies in the future could reduce the company's ability to compete successfully and harm its results of operations or cause the company to curtail or cease its operations.
- The company's actual cost in executing an SWT contract may vary substantially from the assumptions underlying its bid. The company may be unable to recover all or some of the additional expenses, which may have an adverse effect on its business, financial condition, results of operations, and prospects.
- The company's employ a significant number of personnel in its business operations which are a substantial part of the company's total expenses and are susceptible to risks relating to compliance with labour laws and its operations could be adversely affected by labour shortages, strikes, work stoppages or increased wage demands by the company's employees or any other kind of disputes with its employees.
- The company is exposed to significant cost variations on fixed-rate contracts.
- The company is dependent on R&D for its future success. While the company does not have any formal R&D programme in place currently, if the company does not successfully develop new products or continue its product portfolio expansion in a timely and cost-effective manner, the company's business, financial condition, cash flows and results of operations may be adversely affected.
- Information relating to capacity utilization of the company's manufacturing facilities and operational plants included in this Red Herring Prospectus are based on various assumptions and estimates. Underutilization of the company's capacities and an inability to effectively utilize such capacities may have an adverse effect on its business and future financial performance.
- The company's WWT operations in India experience seasonality, and any disruptions or underperformance during seasonal periods could negatively affect its results of operations and financial condition.
- The company's growth may be negatively impacted by macroeconomic factors.
- The company's business and prospects may be adversely affected by negative publicity or damage to its reputation.
- In the event the company fails to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required to operates the company's business, including due to any default on the part of the owners of the properties its lease, the company's business, cash flows and results of operations may be adversely affected.
- The company's inability to protect or use its intellectual property rights may adversely affect the company's business. Its may also unintentionally infringe upon the intellectual property rights of others, any misappropriation of which could harm the company's competitive position.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on its business growth and prospects, financial condition and results of operations. Further, if the company's competitors are able to improve the efficiency of their manufacturing processes and thereby offer their products at lower prices, its revenues and profitability may decline.
- Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by Frost & Sullivan (India) Private Limited ("F&S"), exclusively commissioned and paid for by the Company for the purpose of this Offer.
- The information included in this Red Herring Prospectus in relation to the company's listed peers may not be comparable and it may be difficult to benchmark and evaluate its financial performance against other operators who operates in the same industry as the company.
- The company's Promoters, Sandeep Sudhakar Asolkar and Priya Sandeep Asolkar have provided personal guarantees for the lending facilities availed by the Company, its Subsidiaries, Hindustan Waste Treatment Limited ("HWTPL") & Pentagen Biofuels Private Limited ("PBPL") and the company's Promoter Group entity, Asolkar Tradecraft Private Limited ("ATPL"). The Promoters may provide additional guarantees in the future and any failures or default in repaying such loans could trigger repayment obligations on the company's Promoters, which may also impact its Promoters ability to effectively service their obligations as the company's Promoters and thereby, adversely impact its business and operations.
- The company's insurance coverage may not be adequate to protect it against all potential losses, which may have a material adverse effect on the company's business, financial condition, cash flows and results of operations.
- Failures or disruption of the company's IT systems, or cybersecurity breaches or similar disruptions, may adversely affect its business, financial condition, results of operations and prospects.
- The company failures to keep its technical knowledge confidential could erode the company's competitive advantage.
- The company conduct transactions in foreign currencies and are exposed to risks associated with foreign exchange rate fluctuations.
- The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a downgrade of the company's rating may restrict its access to capital and thereby adversely affect the company's business and results of operations.
- The company relies on contract labour for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on the company's results of operations, cash flows and financial condition.
- The company has presented certain supplemental information of its performance and liquidity which is not prepared under or required under Ind AS.
- The company cannot assure payment of dividends on the Equity Shares in the future.
- The company is exposed to a variety of risks associated with safety, security and crisis management.
- The company will not receive any proceeds from the Offer for Sale portion.
- The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of the company's Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders approval.
- The company may not be able to derives the expected benefits of the deployment of the Net Proceeds, in a timely manner, or at all.
- Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders approval.
- The company's Promoters will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise influence over the company.
- This Red Herring Prospectus also contains forward-looking statements that involve risks and uncertainties where actual results could materially differ from those anticipated in these forward-looking statements.
The Issue type of SFC Environmental Technologies Ltd is Book Building.
The minimum application for shares of SFC Environmental Technologies Ltd is 45.
The total shares issue of SFC Environmental Technologies Ltd is 20228204.
Initial public offering of up to 20,228,204 equity shares of face value of Rs. 2 each ("Equity Shares") of the company for cash at a price of Rs. 330 per equity share (including a share premium of
Rs. 328 per equity share) ("offer price") aggregating up to
Rs. 667.53 Crores ("Offer"). The offer comprises a fresh issue of up to 4,545,454 equity shares (of face value of Rs. 2 each) aggregating up to Rs. 150.00 Crores by the company ("Fresh Issue") and an offer for sale of up to 15,682,750 equity shares of face value of Rs. 2 each ("Offered Shares") aggregating up to Rs.517.53 Crores, comprising of up to 934,000 equity shares of face value of Rs. 2 each aggregating up to Rs. 30.82 Crores by Sandeep Sudhakar Asolkar (held Jointly with Priya Sandeep Asolkar), up to 3,736,000 equity shares of face value of Rs. 2 each aggregating up to Rs. 123.29 Crores by Saketchandrasingh Pratapsingh Dhandoriya, (the "Promoter Selling Shareholders") up to 3,565,000 equity shares of face value of Rs. 2 each aggregating up to Rs. 117.65 Crores by Sarvesh Kumar Garg, up to 2,136,000 equity shares of face value of Rs. 2 each aggregating up to Rs. 70.49 Crores by Sandeep Sambhaji Parab, up to 2,136,000 equity shares of face value of Rs. 2 each aggregating up to Rs. 70.49 Crores by Rajesh Kesavan Nambisan, up to 2,136,000 equity shares of face value of Rs. 2 each
aggregating up to Rs. 70.49 Crores by Kumaraguru Madurakavi, up to 933,000 equity shares of face value of Rs. 2 each aggregating up to Rs. 30.79 Crores by Veera Venkata Satyanarayana Yannamani, up to 70,000 equity shares of face value of Rs. 2 each aggregating up to Rs. 2.31 Crores by Jayshree Harit Shah (held Jointly with Harit Pragji Shah), up to 36,750 equity shares of face value of Rs. 2 each aggregating up to Rs. 1.21 Crores by Hardik Suresh Matalia (the "Other Selling Shareholders", and together with the promoter selling shareholders, the "Selling Shareholders" and such offer for sale of equity shares by the selling shareholders, the "Offer For Sale"). The offer shall constitute [*] % of the post-offer paid up equity share capital of the company.
In accordance with and subject to regulation 33 of the sebi icdr regulations, the offer may include a reservation of up to [*] equity shares (of face value of Rs.2/- each), aggregating up to Rs.[*] crores (constituting up to [*]% of the post offer paid-up equity share capital of the company), for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "net offer". The offer and the net offer shall constitute [*]% and [*]%, respectively, of the post-offer paid-up equity share capital of the company. the company, in consultation with the book running lead managers, may offer a discount of up to [*]% (equivalent to Rs.[*] per equity share) to the offer price to eligible employees bidding under the employee reservation portion ("employee discount").
The company, in consultation with the brlms, may consider a further issue of specified securities as may be permitted under applicable law, at its discretion, aggregating up to Rs.30.00 crores (the "pre-ipo placement"), prior to the filing of the pre-ipo placement, if undertaken, will be at a price to be decided by the company, in consultation with the brlms. If the pre-ipo placement is completed, the amount raised pursuant to the pre-ipo placement will be reduced from the fresh issue, subject to compliance with Rule 19(2)(b) of the scrr. The pre-ipo placement, if undertaken, shall not exceed 20% of the size of the fresh issue.
Price Band: Rs. 313 to Rs. 330 per equity share of face value of Rs. 2 each.
The floor price is 156.50 times the face value of the equity shares and the cap price is 165.00 times the face value of the equity shares.
Bids can be made for a minimum of 45 equity shares of face value of Rs. 2 each and in multiples of 45 equity shares thereafter.