Vikram Solar has filed the draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO). The company is likely to raise around ₹2,000 crore through the offer, according to market sources.

The IPO would consist of fresh issue of up to ₹1,500 crore and Offer for Sale (OFS) of up to 5,000,000 equity shares by the selling shareholders. Of the total net proceeds to be raised through the issue, the company proposes to utilise around ₹1,238 crore towards funding capital expenditure for setting up of a 2,000 MW integrated solar cell and solar module manufacturing facility in Tamil Nadu involving a total investment of around ₹1,244 crore, and the remaining towards general corporate purposes, as per information in the DRHP. 

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Solar PV modules manufacturer

Vikram Solar is one of the largest manufacturers of solar photo-voltaic modules and an integrated solar energy solutions provider offering engineering, procurement and construction services, and operations and maintenance. It has a global footprint through a sales office in the US and a procurement office in China. It has supplied solar PV modules to customers in 32 countries, as of December 31, 2021.

As of that date, Vikram Solar had an order book (including framework agreement/letters of intent) of ₹4,870 crore, of which ₹1,621 crore comprise projects and 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. The company has 2,500 MW installed manufacturing capacity for solar PV modules.  

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.

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