Indian water treatment firm plans 2010 IPO

Chennai, India-based water treatment company VA Tech Wabag is reportedly looking to raise Rs 500 crore ($104 million) in an initial public offering in early 2010.

The company develops water and wastewater treatment technology and has installed 6,000 projects for the municipal and industrial sectors in India, North America, Europe and the Middle East. Under half its income comes from the domestic market.

The Economic Times reported that Wabag has now approved an IPO plan and soon plans to file its prospectus. The new funds are expected to grow its operations in the Middle East and China, where it recently incorporated a subsidiary.

The company had sales of Rs 1,100 crore ($230 million) in 2008, and profit of Rs 50 crore ($10.4 million).

Current shareholders include ICICI Venture, the management team, UK-based GLG, U.S.-based Passport, Singapore's GIC, and Hong Kong's Satta.

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