WOG Technologies Files DRHP for IPO

WOG Technologies, an environmental engineering company, has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) seeking approval to conduct an initial public offering (IPO). WOG Technologies plans to offer ₹375 crore through a fresh share issuance and 43.28 lakh equity shares owned by shareholders and promoters.

Proceeds from the freshly issued shares will be used fund working capital, to purchase the remaining 50% ownership of Bell Cooling Towers, and for general corporate purposes.

Part of the WOG Group established in 2010, the company provides industrial and municipal customers with water and wastewater treatment solutions. But, the question is, does this niche provider have future growth potential in the public markets?

How Did Financial Growth Fuel IPO Plans?

In FY25, WOG's revenue from operations increased to ₹165.43 crores, more than double the previous year when it had achieved ₹82.18 crores. The net profit of WOG Technologies increased to ₹44.24 crore in FY25, up from ₹2.79 crore the previous year, indicating strong demand for its tailor-made water and wastewater treatment systems.

WOG has appointed Unistone Capital as its only merchant banker to advise on its listing on the main board of the stock exchange. The turnaround in financials confirms the feasibility of expanding into end-to-end wastewater recycling systems (including biogas). The filing of the Draft Red Herring Prospectus shows that WOG is well-positioned to continue growing in line with the growing focus on sustainability.

Business Model and Service Portfolio

WOG designs and delivers solutions that meet clients' operational and compliance needs across multiple industries. Its technology-driven approach combines experience and expertise to provide effective, end-to-end support. WOG differentiates itself from competitors through integrated execution.

WOG has been executing projects since 2010, building a strong track record in project delivery. The acquisition of Bell Cooling Towers, which brings over two decades of experience in cooling systems, further strengthens WOG’s capabilities within the overall water management ecosystem.

Strategic Use of Proceeds: What’s Next?

Funds from the new share issue will finance additional working capital to support the continued growth of WOG’s order book and establish liquidity to manage the current backlog of orders and projects. The acquisition of the remaining 50% of Bell Cooling Towers will complete the control over a complementary cooling tower technology and improve synergies with WOG's existing portfolio. The remaining capital allocation will give the company the flexibility to pursue R&D projects or expand its market presence.

With the issuance of new shares, the company has created opportunities for the promoters to exit while maintaining their strategic oversight. Additionally, listing on stock exchanges will enable institutions to invest in the company, benefiting from the tailwinds of water scarcity and environmental, social, and governance (ESG) regulations.

WOG’s DRHP shows strong financial performance and its plan to raise capital through a share issuance, primarily to acquire the Bell Cooling Towers stake and support working capital needs. The key question for investors is how effectively these funds will help WOG expand its wastewater solutions and support India’s infrastructure development.

References:

The Hindu
Money Control
WOG DRHP