Concord Enviro Systems, an environmental engineering solutions firm, has received Sebi's go- ahead to raise funds through an initial public offering (IPO).

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The proposed IPO comprises fresh issuance of equity shares worth Rs 175 crore and an offer-for-sale (OFS) of 35,69,180 shares by promoters and an investor, according to the draft red herring prospectus (DRHP).

Those selling shares in the OFS are promoters Prayas Goel and Prerak Goel, promoter groups Namrata Goel, Nidhi Goel, and Pushpa Goel and investor AF Holdings.

Concord Enviro Systems, which filed preliminary IPO papers with the capital markets regulator in July, obtained its "observation" letter on August 30, an update with the Securities and Exchange Board of India (Sebi) showed on Monday.

In Sebi's parlance, issuance of observation letter implies its go-ahead to float an IPO.

Going by the draft papers, proceeds from the fresh issue will be used for investment in the company's arm Concord Enviro FZE in relation to financing the construction of an assembly unit in Sharjah International Airport Free Zone.

Proceeds will also be used for investment in subsidiary Rochem Separation Systems (India) for funding its working capital requirements, payment of debt and general corporate purpose.

Concord Enviro Systems is an integrated solutions provider for industrial wastewater reuse and zero liquid discharge solutions, with an in-house position across the value chain.

According to an F&S Report, the industrial water and wastewater treatment solutions market was valued at Rs 6,500 crore in fiscal 2021.

DAM Capital Advisors and Equirus Capital are the book-running lead managers to the issue.