Solar panel maker Saatvik may go public next fiscal, plans Rs 1,500 cr capex

With the additional capacity, the company expects its revenue to increase to Rs 1,800-2,000 crore rupees this financial year

Gurugram-based solar module maker Saatvik Solar, which currently has a module manufacturing capacity of 3.8 GW (gigawatts), is planning to spend Rs 1,500 crore to set up a 2- GW cell manufacturing capacity and an additional 4-GW capacity for solar modules, senior executives of the company told Moneycontrol in an interaction.

They added that the company is contemplating an initial public offering (IPO), and is likely to go public in FY26.

“We started our journey 10 years ago, with an initial capacity of 200 megawatts (MW). Since then, we’ve experienced consistent growth. Our revenue has increased ten-fold—from Rs 100 crore to over Rs 1,100 crore last year—placing us among the fastest-growing solar companies. We now operate three manufacturing facilities, and as part of our long-term strategy, we are focused on both forward and backward integration. We are continuously expanding our customer base and strengthening our market position,” said Prashant Mathur, CEO of Saatvik Solar.

Mathur added that as part of its expansion plan, the company is adding 2 GW of cell manufacturing and an additional 4 GW of module manufacturing.

“We will initially add 2 GW of cell manufacturing and 2 GW of module production, with the potential to expand module production by another 2 GW. By next year, we plan to have a total capacity of 5.86 GW for modules and 2 GW for cells,” he said.

'See revenue increasing to Rs 2,000 cr'

With the additional capacity, the company expects its revenue to increase to Rs 1,800-2,000 crore this financial year and it is aiming to grow its top line in high double digits in the coming years.

Saatvik will invest around Rs 1,500 crore for this capex plan, the funding for which will come from internal accruals and debt.

“We have a strong relationship with a few bankers and they are ready to finance us. We would then generate a lot of internal accruals and this will be sufficient to fund our equity portion. Some large power finance companies have shown interest in funding the project, and we are in talks with them,” said Abani Jha, CFO of Saatvik Solar.

IPO plan

While the  current capex requirement are going to be met from internal accruals and debt, the company is likely to soon follow in the footsteps of its counterparts Premier Energies, Waaree Energies and Vikram Solar, which have already debuted on the stock markets or have announced  intentions to do so.

“We are thinking but we are at a very early stage of our thought process and nothing has materialised as yet. Sooner or later, one company has to travel in that direction, but we are at a very early phase of that thought, as of now,” said Jha, adding that a public market debut is unlikely this fiscal and the company may look at FY26 for going public

Also Read: Indian solar panel makers plan to raise Rs 5,800 crore this year

Not much focus on exports right now

The company is currently focused on supplying to the domestic market and exports form only a small part of the business. Exports will continue to remain a smaller focus area in the near future, given the dumping of Chinese solar modules in the global market, the management said.

"While exports are part of our focus, they are not a primary priority. However, due to the current unattractive prices in North America, driven down by Chinese dumping, we are not prioritising this market at present,” said Mathur.

“With the added cell capacity, we will shift some of our attention to North America. Despite this, we believe the Indian market is currently very strong and will remain our main focus. Our target is to generate about 10-15 percent of our revenues from North America as the market becomes more favourable. With an existing customer base in place, we are well-positioned to expand our presence in the region when the situation improves,” he added.

Saatvik also has plans to set up a 1 GW module manufacturing facility in the US, but has currently kept those plans on hold due to the upcoming presidential elections.

Apart from the expansion into solar cell manufacturing, the comoany is looking at further backward integration and expanding into newer areas, such as green hydrogen.

“Apart from module and cell manufacturing and potentially wafers and ingots in future, we are also looking at electrolysers and green hydrogen and battery manufacturing. They are the new technologies which are going to be a good mix with solar, and will further drive the organisation’s growth,” said Mathur.