SEBI has given its go-ahead for the initial public offering (IPO) of Vikram Solar, which consists of a fresh issue of up to ₹1,500 crore and an offer-for-sale (OFS) of up to 50 lakh shares.

The homegrown solar photo-voltaic (PV) module manufacturer had filed the preliminary IPO papers with the capital markets regulator in March.

Vikram Solar received the observation letter from SEBI on August 10, and the same was updated by the regulator on Wednesday. Now the company can go ahead and file the Red Herring Prospectus (RHP) as well as announce the launch date and price band.

Of the fresh issue of up to ₹1,500 crore, the company proposes to utilise a portion of the net proceeds for setting up an integrated solar cell and solar module manufacturing facility with an annual production capacity of 2,000 MW.

The book-running lead managers to the offer are JM Financial and Kotak Mahindra Capital Company. The equity shares are proposed to be listed on the BSE and NSE.

About the company

The company is a leading solar equipment manufacturer with 2.5-gigawatt operational capacity with a strong presence in domestic and international markets, producing solar PV modules. It 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.

It has a sales office in the US and a procurement office in China, and has supplied solar PV modules to customers in 32 countries, as of December 2021.

In India, its customers include State-run NTPC, Amp Energy India, Azure Power, West Bengal State Electricity Distribution Company, Solar Energy Corporation of India, and HPCL, while international customers include Amp Solar Development, Safari Energy, Standard Solar and Southern Current.

As of December 31, 2021, Vikram Solar had an order book (including framework agreement/letters of intent) of ₹4,870 crore, of which ₹1,621 crore comprise projects/operations which are already under execution and ₹3,248 crore comprise projects which are yet to be executed. The company clocked revenues of ₹1,610 crore in FY21.

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