Vikram Solar files draft papers to raise funds via IPO

IPO

Vikram Solar Ltd has filed draft papers with Securities Exchange Board of India (SEBI) to raise funds via initial public offering (IPO).

The IPO consists of a fresh issue of Rs 1,500 crore and offer for sale of upto five million shares by its existing shareholders and promoters. The firm may consider a pre-IPO placement of Rs 300 crore, the firm said in its DRHP.

The OFS comprises selling upto 3.62 million shares by Anil Chaudhary, upto 2.58 lakh shares by Girish Kumar Madhogaria, upto 1.27 lakh by Pushpa Madhogaria, upto 1 million shares by Vikram India Ltd.

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The proceeds from the issue worth Rs 1,238.80 crore will be used for funding capital expenditure for setting up a 2000 megawatts integrated solar cell and solar module manufacturing facility at Tamil Nadu through its wholly owned arm VSL Green Power Pvt Ltd.

JM Financial and Kotak Mahindra Capital Co Ltd are the lead managers to the issue.

The firm is India’s largest module manufacturer, in terms of operational capacity, producing solar photo-voltaic (PV) modules, and is also an integrated solar energy solutions provider offering engineering, procurement and construction (EPC) services, and operations and maintenance (O&M) services to its customers.

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As of December 2021, the firm has a domestic market share of approximately 19 percent (calculated as a percentage of operational modules capacity) with 2.5 GW (inclusive of trial production i.e. which is not yet commercially available) of installed manufacturing capacity for solar PV modules. It also expanded its global footprint through a sales office in the United States of America and a procurement office in China and has supplied solar PV modules to customers in 32 countries.

The firm has two facilities, one in Falta, Kolkata which has a present capacity of 1.2GW and it has commenced plans on upgrading the manufacturing plant to 3GW within fiscal 2023. The second plant is in Tamilnadu and it plans to establish a new facility of 2GW.

For fiscal 2021, its total revenue was at Rs 1,610.14 crore against Rs 1,639.68 crore a year ago. Net profit for the period stood at Rs 56.20 crore versus Rs 30.44 crore last year. For the six month ended September 2021, its revenue was at Rs 597.85 crore while net loss at Rs 18.96 crore. As of September 2021, the firm has total debt of Rs 729.42 crore.

As of December 31, 2021, VSL had an Order Book (including framework agreement/letters of intent) of Rs 4,870 crore, of which Rs 1,621 crore comprises projects and operations which are already under execution and Rs 3,248 crore comprises projects which are yet to be executed.