Mumbai-based leading player in wastewater treatment, recycling & reuse and solid waste management, SFC Environmental Technologies, has re-filed its IPO Papers with the Securities and Exchange Board of India (SEBI). The IPO comprises a fresh issue of equity shares aggregating up to INR 150 crore and an OFS of up to 1.23 crore shares.
SFC Environmental Technologies IPO will include a 35% allocation for retail investors, a reserved portion for employees. The company has appointed IIFL Capital Services, JM Financial and Nuvama Wealth Management as the book-running lead managers (BRLMs), while MUFG Intime India will serve as the registrar.
SFC Environmental Technologies IPO Structure Compared to its earlier DRHP, SFC has trimmed the fresh issue size slightly, while increasing the OFS component. The funds raised from the fresh issue are earmarked for:
- Debt prepayment/reduction (INR 47.46 crore towards borrowings of the company and subsidiary Vasudha Waste Treatment).
- Working capital requirements (INR 69.67 crore).
- Balance will be used for general corporate purposes.
Company Profile and Evolution Incorporated in 2005, SFC Environmental Technologies has steadily built a strong position in the environmental technology space. Its C-Tech sequencing batch reactor (SBR) technology for wastewater treatment dominates the Indian market with over 80% market share in the segment and more than 1,000 plant installations across the country.
Over the years, the company has expanded vertically by acquiring and building manufacturing capabilities:
- Chavare Engineering (2011) – automation solutions.
- Fine Aeration Systems (2022) – diffuser manufacturing.
- Turbomax India (2022) – turbo blowers.
- Decanter manufacturing (2023) – in Pune, with multiple facilities.
- IST-Anlagenbau GmbH (2025) – 80% stake in the German solar sludge dryer company.
It has also entered Wastewater Recycling & Reuse (WRR) through an exclusive tie-up with DuPont, and expanded into Solid Waste Treatment (SWT) with municipal projects in Goa and upcoming compressed biogas (CBG) plants in Assam and Odisha. Through subsidiary Pentagen Biofuels, SFC is venturing into agro-waste-based biogas projects.
Order Book Strength As of 15 August 2025, SFC’s total order book stood at a robust INR 1,267.5 crore, spanning wastewater treatment, recycling and reuse, and solid waste treatment segments.
- WWT Order Book: INR 670.7 crore.
- SWT Order Book: INR 592.5 crore.
- WRR Order Book: INR 4.3 crore (a new growth area).
The high order book-to-revenue ratio provides strong earnings visibility for the next few years.
Business Moat & Strengths
- Technology leadership: Dominant in SBR-based wastewater treatment with proprietary C-Tech package.
- Backward integration: In-house manufacturing of decanters, diffusers, blowers, PLC panels, and solar sludge dryers reduces import dependence and enhances margins.
- Global tie-ups: Exclusive partnerships with DuPont, TurboMax (SK), IST-Anlagenbau (Germany), Yucheon (SK), and EDI (USA).
- Sustainability play: Positioned strongly in wastewater reuse, CBG blending obligations, and municipal waste management.
- Repeat business: 85–90% of revenues in recent years came from repeat customers, reflecting client stickiness.
Risks & Considerations
- Project execution risk – large EPC contracts require on-time delivery, cost efficiency, and regulatory approvals.
- Import exposure – while localisation has reduced dependence, some key components (membranes, filters) are still imported.
- Working capital intensity – the business relies on timely collections from government/municipal clients.
- Competitive bidding – municipal projects are awarded through tenders, potentially pressuring margins.
With rising focus on water conservation, urban wastewater management, and renewable energy from waste, SFC is strategically placed to benefit from both policy tailwinds and increasing demand. Its strong order book, vertical integration, global partnerships, and healthy balance sheet make it a formidable player in India’s environmental infrastructure space.
SFC Environmental Technologies IPO will be closely watched by investors keen on sustainability-linked infrastructure plays. Valuation, however, will be key – particularly in comparison with listed peers in EPC and waste management.
