Gujarat-based solar EPC company Prozeal Green Energy plans to tap capital markets for raising funds up to Rs 700 crore via initial public offering. It has filed draft red herring prospectus with the SEBI.
The IPO will be a combination of fresh issuance of shares worth Rs 350 crore, and an offer-for-sale of Rs 350 crore by existing shareholders.
Promoters Shobit Baijnath Rai, and Manan Hitendrakumar Thakkar will be selling Rs 168.5 crore worth shares each in offer-for-sale. The remainder shares worth Rs 13 crore will be sold by investors - AAR EM Ventures LLP, Jaya Chandrakant Gogri, Bhaveshkumar Bachubhai Mehta, and Manoj Mulji Chheda.
Promoters own 88.63 percent stake in the renewable energy solutions provider, and public shareholders hold 11.37 percent stake.
The company may consider raising up to Rs 70 crore in pre-IPO round. If it successfully closes this pre-IPO placement, the said amount will be reduced from the fresh issue.
Prozeal Green Energy claimed to be the fourth largest solar EPC company in India in terms of revenue for FY24. Since inception in 2013, it has executed 182 solar power projects with a total installed capacity of 783.98 MWp.
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Its order book was Rs 2,220.9 crore as of September 2024, of which 99.48 percent in the ground-mounted solar power projects segment.
The company also provides operations and maintenance services, as well as EPC services for establishing electric vehicle (EV) charging infrastructure.
Prozeal Green Energy intends to spend Rs 250 crore out of net fresh issue proceeds for long-term working capital requirements, Rs 19.5 crore for repayment of debt, and the remainder funds for general corporate purposes.
On the financials front, it has registered a more than 4-fold increase in profit at Rs 92.2 crore for the year ended March 2024, compared to Rs 21.5 crore in the previous fiscal. Revenue during the same period grew by 178.3 percent to Rs 948.9 crore, from Rs 341 crore.
Profit in six months period ended September 2024 stood at Rs 51.6 crore on revenue of Rs 468.5 crore.
Nuvama Wealth Management and SBI Capital Markets are appointed as the book running lead manager for the issue.
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