Vikram Solar, one of the largest solar photo-voltaic modules manufacturers, has filed draft papers with the capital markets regulator SEBI for fund raising via initial share sale on September 30.
The IPO consists of fresh issue of Rs 1,500 crore worth shares, and an offer-for-sale of 1.74 crore equity shares by promoters Gyanesh Chaudhary, Vikram Capital Management, and Anil Chaudhary.
Promoters' shareholding in the company stands at 77.64 percent, while the public shareholders including Arpit Khandelwal, and Asnu Finvest own 22.36 percent stake.
The solar solutions provider may consider raising Rs 300 crore funds via private placement (the pre-IPO placement). If the company raises funds in pre-IPO placement, the said amount will be reduced from the fresh issue.
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With manufacturing facilities in Falta SEZ (Kolkata), and Oragadam (Chennai), Vikram Solar commenced manufacturing operations in 2009 with an installed solar PV module manufacturing capacity of 12.00 MW, which has increased up to 3.50 GW capacity. It is currently undertaking greenfield and brownfield expansion plans, which are expected to increase its capacity to 10.50 GW by FY26 and 15.50 GW by FY27.
The company intends to utilise Rs 793.4 crore out of the fresh issue proceeds for setting up of 3,000 MW solar cell and 3,000 MW solar module manufacturing facility by subsidiary VSL Green Power in Tamil Nadu, which is the Phase-I project, and Rs 603 crore for expanding the same solar module manufacturing facility from 3,000 MW to 6,000 MW which is the Phase-II project.
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The Kolkata-based company competes with the listed peers like Premier Energies (which listed in September), and Websol Energy System. Its financial performance has seen strong improvement in the reported past years.
As per the draft papers, net profit in the fiscal 2024 grew significantly by 450 percent to Rs 79.7 crore compared to Rs 14.5 crore in the previous year, with strong operating margin performance. EBITDA (earnings before interest, tax, depreciation, and amortisation) during FY24 grew by 114 percent to Rs 398.6 crore with margin increasing 690 bps to 15.9 percent in FY23.
Revenue from operations stood at Rs 2,511 crore for the year ended March 2024, higher by 21.1 percent from Rs 2,073.2 crore in the previous year.
The book running lead managers handing its IPO will be JM Financial, Nuvama Wealth Management, UBS Securities India, Equirus Capital, and PhillipCapital India.
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