Vikram Solar files for IPO to raise funds for 2GW integrated solar fab

From pv magazine India

Kolkata-headquartered Vikram Solar, one of India’s leading module manufacturers and a comprehensive EPC solar solutions provider, has filed a draft red herring prospectus (DRHP) with market regulator SEBI to launch its initial public offering (IPO).

Vikram Solar intends to utilize the net proceeds from the IPO primarily to fund the capital expenditure for a new 2GW solar module facility in Tamil Nadu with backward integration for solar cells. The manufacturer has already deployed INR 5.58 crore in the INR 1,244.39 crore project. It intends to fund the balance INR 1,238.80 crore of the project costs with the net proceeds. An amount not exceeding 25% of the net proceeds shall be utilized for general corporate purposes. 

The IPO consists of a fresh issue of up to INR 1,500 crore and an offer for sale (OFS) of up to five million equity shares by the selling shareholders. 

The OFS comprises sale of up to 3,615,000 equity shares by group promoter Anil Chaudhary, up to 258,500 equity shares by Girish Kumar Madhogaria (individual shareholder), up to 126,500 equity shares by Pushpa Madhogaria (individual shareholder), and up to 1,000,000 equity shares by Vikram India Limited. 

Vikram Solar is one of India’s largest PV module manufacturers. As of Dec. 31, 2021, the company had a domestic market share of approximately 19% (calculated as a percentage of operational modules capacity) with 2.5GW of installed manufacturing capacity for solar PV modules (inclusive of trial production). It has a global footprint through a sales office in the United States and a procurement office in China and it has supplied PV modules to customers in 32 countries. 

As of this date, the company also had an order book (including framework agreement/letters of intent) of INR 4,870 crore, of which INR 1,621 crore comprises projects/operations which are already under execution and INR 3,248 crore for projects that are yet to be executed. The company clocked INR 1,610 crore revenue in fiscal 2021.