Solar photovoltaic (PV) module manufacturer Vikram Solar has filed its draft red herring prospectus (DRHP) with SEBI to raise up to ₹1,500 crore through an initial public offering (IPO).
The integrated solar energy solutions provider manufactures solar PV modules and offers engineering, procurement, and construction (EPC) as well as operations and maintenance (O&M) services.
As per the DRHP filed with the capital markets regulator, Vikram Solar aims for an IPO comprising fresh issues of shares up to ₹1,500 crore and an offer for sale (OFS) of up to 17.45 million equity shares by its promoter group.
The IPO, with a face value of ₹10 per equity share, includes a reservation for eligible employees and a discount for those participating in the employee subscription portion. The company may also consider issuing specified securities up to ₹300 crore as a “pre-IPO placement.”
The offer will use a book-building process, allocating not more than 50 per cent to qualified institutional buyers, a minimum of 15 per cent to non-institutional bidders, and at least 35 per cent to retail individual investors.
The proceeds from the IPO will be used to fund a capital expenditure of ₹793.36 crore through investment in its wholly-owned subsidiary, VSL Green Power, to set up a 3,000 megawatt (MW) solar cell and module manufacturing facility.
Additionally, the company plans to earmark ₹602.95 crore for expanding the existing solar module manufacturing facility from 3,000 MW to 6,000 MW and allocate funds for general corporate purposes.
According to the DRHP, Vikram Solar had an order book of 8,214.63 MW. In CY 2024, notable contracts included a 397.70 MW project from NTPC Renewable Energy and others and a 1 GW order from a JSW Energy subsidiary.
Vikram Solar’s revenue grew by 21.11 per cent Y-o-Y to ₹2,510.99 crore in FY24, with a profit after-tax rise of 450.10 per cent.
Manufacturing since 2009 with a capacity of 12 MW, Vikram Solar has expanded to 3.50 gigawatt (GW). According to a CRISIL report, it holds one of the largest capacities among non-captive manufacturers on the Ministry of New & Renewable Energy’s Approved List of Module Manufacturers (ALMM), with 2.43 GW listed as of July 2024.
In response to growing market demand, the company is actively pursuing expansions to increase production capacity to 10.50 GW by FY26 and 15.50 GW by FY27, including a 3 GW solar cell manufacturing plant in Tamil Nadu.
With a presence in 23 states and three union territories, Vikram Solar operates through a network of distributors, dealers, and system integrators. It has a sales office in the US and a procurement office in China, and as of March 31, 2024, it supplied solar PV modules to customers in 39 countries.
With extensive experience in executing EPC projects, it has completed or is engaged in over 275 projects totalling 1.03 GW capacity as of March 31, 2024. The UN Global Compact endorses the company, and it is among the 93 Indian firms approved by the Science Based Targets Initiative (SBTI) for its sustainability efforts.
The book-running lead managers for the IPO include Nuvama Wealth Management and others, with Link Intime India as the registrar.