Vikram Solar Ltd, a leading solar photovoltaic (PV) module manufacturer, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The IPO comprises a fresh issue of shares worth ₹1,500 crore and an offer for sale (OFS) of up to 17.45 million equity shares by promoters.
Key Highlights of Vikram Solar’s IPO:
- Utilization of Proceeds: Approximately ₹793.36 crore from the IPO proceeds will be invested in Vikram Solar’s wholly-owned subsidiary, VSL Green Power Pvt Ltd. This investment aims to establish a 3,000 MW solar cell and an equivalent module manufacturing facility in Tamil Nadu. Additionally, ₹602.95 crore is allocated for expanding the solar module manufacturing capacity at the same site from 3,000 MW to 6,000 MW as part of Phase II expansion efforts.
- Product Portfolio: Vikram Solar is renowned for its high-efficiency solar PV modules, offering innovative products such as n-type monocrystalline silicon-based TOPCon and HJT modules, as well as p-type monocrystalline silicon-based PERC modules. This diverse product range positions the company as a key player in the renewable energy sector.
- Financial Performance: In Fiscal 2024, Vikram Solar reported a revenue increase of 21.11%, rising from ₹2,073.23 crore in Fiscal 2023 to ₹2,510.99 crore. The company’s EBITDA also saw significant growth, reaching ₹398.58 crore as of March 31, 2024, up from ₹186.18 crore the previous year. This growth is attributed to rising domestic and export demand for its solar modules.
- Manufacturing Capacity and Expansion Plans: Currently, Vikram Solar boasts an installed manufacturing capacity of 4.50 GW. The company plans to increase this capacity to 10.50 GW by Fiscal 2026 and further to 15.50 GW by Fiscal 2027. The establishment of a 3.00 GW solar cell manufacturing facility in Tamil Nadu is part of its backward integration strategy.
IPO Details:
- Issue Size: Fresh issue of ₹1,500 crore and an OFS of up to 17.45 million equity shares by promoters.
- Face Value: ₹10 per equity share.
- Book Running Lead Managers: JM Financial Ltd, Nuvama Wealth Management Ltd, UBS Securities India Pvt Ltd, Equirus Capital Pvt Ltd, and PhillipCapital (India) Pvt Ltd.
- Registrar: Link Intime India Pvt Ltd.
As Vikram Solar prepares for its IPO, the company aims to leverage the funds raised to support its ambitious expansion plans, enhance production capabilities, and capitalize on the growing demand for solar energy solutions. Investors interested in India’s burgeoning renewable energy sector may find this IPO an attractive proposition.
For more detailed information, you can refer to the official SEBI observation letter and the draft red herring prospectus (DRHP) filed by Vikram Solar.
