Concord Enviro Systems plans stake sale to raise $100 million

NEW DELHI: Concord Enviro Systems (CES), a waste-water treatment company, is looking to divest a significant stake to raise fresh capital of about $ 100 million. The Mumbai-based company has commenced talks with large water companies in the US, Europe and Japan as well as a few global natural resource-focused funds.

CES has mandated boutique investment bank Singhi Advisors to facilitate the transaction, said a person familiar with the development. Private equity firm Sage Capital, which acquired 26% stake in CES for about Rs 40 crore in 2009, plans to sell a small portion of its holding, added the person. Both CES and Sage Capital declined to comment on the development.

“We have the mandate from Concord; at this stage I would not wish to comment,” said Gopal Agrawal, partner at Singhi Advisors in an email. The water sector in India is growing at double-digit rates annually, with several global water companies and private equity investors looking to enter the market to grab a slice of the water sector pie.