Rays Power Infra filed a draft red herring prospectus (DRHP) on January 2 with the Securities and Exchange Board of India (Sebi) for raising funds through an initial public offering.
The IPO of the solar power company will comprise a fresh issue of shares worth Rs 300 crore and an offer-for-sale of 29.95 lakh shares with a face value of Rs 10 each by promoters. Ketan Mehta will sell up to 14.47 lakh shares and Sanjay Garudapally and Pawan Kumar Sharma will offload 7.78 lakh shares each in the OFS.
The company will use the net proceeds of Rs 210 crore to fund incremental working capital requirements and the remaining amount will be used for general corporate purposes.
Also read: 7 tips for 2024: How to maximise gains from IPO listings
The book-running lead manager for the issue is Anand Rathi Advisors and the registrar is Bigshare Services. The equity shares are proposed to be listed on the BSE and NSE.
The company’s name and logo are not registered under the Trade Marks Act, 1999. It derives a significant portion of its revenues from a limited number of customers. During the three months ended June 30, 2023, and fiscals 2023, 2022 and 2021, revenue from operations from the top three customers accounted for respectively 34.86 percent, 59.93 percent, 34.33 percent and 65.88 percent of total revenue from operations.
In the year ended March 2023, the company’s net profit jumped over 1,500 percent to Rs 131 crore from Rs 8 crore in FY22. The revenue from operations increased from Rs 544.42 crore to Rs 776.5 crore in the same period. In FY21, the company reported a loss of Rs 10.6 crore and revenue stood at Rs 366.27 crore. For the year ended June 30, 2023, the profit after tax came at Rs 2.48 crore.
The company in consultation with the lead manager, may consider undertaking a pre-IPO placement through further issue of shares, including private placement, aggregating up to Rs 45 crore, or through a secondary sale by the selling shareholders of up to 14.97 lakh shares. The amount raised from the pre-IPO placement will be reduced from the fresh issue size or the OFS portion.
The company has been one of the early movers in the solar park regime and has now grown into an established player in turnkey solar engineering, procurement and construction (EPC) services. It is one of the leading integrated solar power companies in India with the implementation of solar power projects of 1,207 megawatts peak (MWp).
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