Kolkata-based Vikram Solar, a PV module manufacturer in India, has filed its draft red herring prospectus (DRHP) with regulatory body Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO comprises fresh issue of shares up to INR 1,500 crore and an offer for sale (OFS) of up to 17.45 million equity shares by its promoter group. The IPO has a face value of INR 10 per equity share.
“In consultation with the book-running lead manager, the company may also consider issuing specified securities up to INR 300 crore as a “pre-IPO placement.” The offer will use a book-building process, allocating not more than 50% for qualified institutional buyers, a minimum of 15% to non-institutional bidders, and at least 35% for retail individual investors,” stated Vikram Solar.
Vikram Solar has a manufacturing capacity of 3.5 GW by the time of the DRHP filing. In response to the growing market demand, the company is actively pursuing expansions to increase production capacity to 10.5 GW by fiscal 2026 and 15.5 GW by fiscal 2027, including a 3 GW solar cell manufacturing plant in Tamil Nadu.
Vikram Solar plans to use the net proceeds from fresh issuance, dedicating INR 793.36 crore for capital expenditure through investment in its wholly owned subsidiary, VSL Green Power, to set up a 3 GW solar cell and module manufacturing facility. Additionally, INR 602.95 crore is earmarked for expanding this solar module manufacturing facility from 3 GW to 6 GW, along with allocations for general corporate purposes.
Separately, the company plans to upgrade and expand its existing module manufacturing plants in Falta (West Bengal) with an additional capacity of 1 GW by Fiscal 2025, which is completely funded by internal accruals.
Vikram Solar’s revenue grew by 21.11% to INR 2,510.99 crore in fiscal 2024, with a 450.10% rise in profit after tax. The company has completed or is engaged in over 275 EPC projects totaling 1.03 GW capacity as of March 31, 2024.
The book-running lead managers for the IPO include Nuvama Wealth Management and others, with Link Intime India as the registrar.
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