SFC Environmental Technologies IPO

About SFC Environmental Technologies IPO

The offer consists of both a fresh issue and an offer for sale component. The fresh issue will include up to [-] equity shares of face value of ₹2 each aggregating up to ₹150 crores . The offer for sale portion includes up to 12,307,500 equity shares of face value of ₹2 each aggregating up to ₹[-] crores. The total number of shares and aggregate amount are yet to be finalised.

SFC Environmental Technologies price band is set at XX to XX per share. The lot size for an application is XX. The minimum amount of investment required by retail investors is ₹XX (XX shares) (based on upper price). The minimum lot size investment required by HNI is XX.

The SFC Environmental Technologies IPO opens on XX and closes on YY. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

Incorporated in 2005, SFC Environmental Technologies is an environmental technology company offering efficient technologies and comprehensive engineering solutions in the field of wastewater treatment (WWT), wastewater recycling & reuse (WRR) and solid waste treatment (SWT). The company’s core operations include providing design, technology, manufacturing, supply and supervision for installation and commissioning of equipment for the treatment of wastewater.

Objectives of SFC Environmental Technologies IPO

• Prepayment of all or a portion of certain outstanding borrowings availed by the company and their wholly owned Subsidiary, namely Vasudha Waste Treatment Private Limited.
  
• Funding their working capital requirement.
  
• General corporate purposes.
  

Industry Outlook

India's wastewater treatment market is growing steadily, driven by opportunities in both the industrial and municipal sectors. The expansion is supported by high industrial activity, ongoing urbanization, economic growth, and increasing groundwater stress — all of which necessitate more effective wastewater management. The government's commitment to sustainability, coupled with financial incentives, continues to foster a favorable environment for adopting innovative treatment technologies. Notably, the market is witnessing a gradual shift from price-sensitive procurement to value-based approaches, with a growing number of Build, Own, Operate, and Transfer (BOOT) projects, typically spanning 15 to 30 years, that emphasize long-term performance and reliability.

SFC Environmental Technologies Information

Incorporated in 2005, the company’s core operations include providing design, technology, manufacturing, supply and supervision for installation and commissioning of equipment for the treatment of wastewater. Their proprietary technology for wastewater treatment is C-Tech, which is an advanced technology for treating sewage and effluents. (Source: F&S Report) With 639 installations in the WWT segment, as of March 31, 2025, particularly in sewage treatment plants (STPs), they hold over 80% market share in sequencing batch reactor (SBR) technology, a key wastewater treatment method in India. (Source: F&S Report) Their technologies facilitate the treatment of 1520.945 crore litres per day of wastewater, as of March 31, 2025. (Source: F&S Report). In addition to their C-Tech package, they offer high-efficiency turbo blowers for aeration in wastewater treatment, fibre disc filters for efficient removal of suspended solids from wastewater and solar sludge drying systems to efficiently dry sludge from wastewater and solid waste treatment using solar energy.

Strength s of SFC Environmental Technologies

• Technology driven market leadership 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 of S FC Environmental Technologies

• Dependency upon technology.
• A significant part of their revenue comes from their top 10 customers and they do not have long term contracts with most of these customers.
• Their subsidiary, SFC Umwelttechnik GmbH has been, and continues to be, involved in material legal proceedings.
• Depend on a few suppliers for the supply of the majority of their raw materials without exclusive supply agreements.
• Failure by third parties to supply, manufacture or deliver materials and components according to schedules, prices, quality, and volumes.
• Their WWT operations in India experience seasonality.
• Risks associated with foreign exchange rate fluctuations.
• Rely on contract labour for carrying out certain of their operations

Notes: (i) All the financial information for listed industry peers mentioned above is on a consolidated basis (unless otherwise available only on standalone basis) and is sourced from the annual reports as available of the respective company for the relevant year ended March 31, 2025.

(ii) P/E Ratio has been computed based on the closing market price of equity shares on BSE on August 14, 2025, divided by the Diluted EPS for the Fiscal 2025.

(iii) Return on Net Worth (%) = Profit after tax attributable to owners / Average Net Worth (Average Net Worth is calculated as the arithmetic average of opening and closing balance of Net Worth).

(iv) Net Worth = Aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the Restated Consolidated Financial Information / audited consolidated financial information (as applicable), but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.

(v) Net asset value per share = Net worth (excluding Non-Controlling Interest) / weighted average number of equity shares outstanding at the end of the year adjusted for the subdivision of the equity shares and issue of bonus shares, if any, in accordance with principles of Ind AS 33.

Anchor Investor Bidding Date: TBA

Registrar: MUFG Intime India Private Limited (formerly Link Intime India Private Limited)
Book Running Lead Managers:

• IIFL Capital Services Limited (formerly known as IIFL Securities Limited)
  
• JM Financial Limited
  
• Nuvama Wealth Management Limited
  

Business Model

The company earns its revenue offering efficient technologies and comprehensive engineering solutions in the field of wastewater treatment (WWT), wastewater recycling & reuse (WRR) and solid waste treatment (SWT).

SFC Environmental Technologies Growth Trajectory

The company’s Total Income was ₹726.963 crores in FY2025, ₹676.744 crores in FY2024, and ₹530.825 crores in FY2023.

Their Profit After Tax was ₹152.008 crores in FY2025, ₹144.173 crores in FY2024, and ₹94.809 crores in FY2023.

EBITDA was ₹207.480 crores in FY2025, ₹193.254 crores in FY2024, and ₹124.072 crores in FY2023.

SFC Environmental Technologies Market Position

The company has a pan-India presence having delivered their technologies for installation in WWT projects in various regions of India covering 26 states and five union territories of India, as on March 31, 2025, including Andhra Pradesh, Assam, Bihar, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand and West Bengal.

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹726.963 crores, ₹152.008 crores, and ₹207.480 crores, respectively.

How to apply for SFC Environmental Technologies IPO?

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.