Vikram Solar IPO: SEBI Approves Rs 1,500 Cr Issue; Know Date, Price, Issue Size, GMP, Expansion & How to Apply

Upcoming IPO: Solar photovoltaic module manufacturers Vikram Solar Ltd has received approval from the Securities and Exchange Board of India (Sebi) to proceed with its initial public offering (IPO). The IPO will include a fresh issue of shares valued at up to Rs 1,500 crore and an offer for sale of up to 17.45 million equity shares by promoters.

Vikram Solar IPO Gets SEBI's Approval: Check IPO Date and Allotment Details

Vikram Solar Ltd has outlined plans to use a significant portion of the funds raised through its upcoming IPO to strengthen its manufacturing capabilities. Of the total proceeds, approximately Rs 793.36 crore will be allocated to its subsidiary, VSL Green Power Pvt Ltd.

Vikram Solar IPO dates are yet to be officially announced. However, investors can expect the allotment for the Vikram Solar IPO to be finalized on a date that will be confirmed closer to the issue opening. Similarly, the price band for the IPO has not been disclosed yet and will be announced by the company in coordination with the lead managers ahead of the launch.

This capital will be used to develop a state-of-the-art solar manufacturing facility with a production capacity of 3,000 megawatts (MW) each for solar cells and modules. Furthermore, the company intends to invest an additional Rs 602.95 crore at the same location to support Phase II of the project, which will see the solar module capacity double from 3,000 MW to 6,000 MW.

Vikram Solar has earned a reputation in the renewable energy sector for delivering high-performance solar photovoltaic modules. The company's product portfolio includes cutting-edge technologies such as n-type monocrystalline silicon-based TOPCon (Tunnel Oxide Passivated Contact) modules and HJT (Heterojunction) modules, known for their superior efficiency.

In addition, it manufactures p-type monocrystalline silicon-based PERC (Passivated Emitter Rear Contact) modules, widely used for their cost-effectiveness and performance. This wide range of advanced solar solutions positions Vikram Solar as a leading and innovative player in India's rapidly expanding green energy landscape.

Vikram Solar Limited Financial Performance

Vikram Solar has posted a solid financial performance in FY24, with revenue increasing by 21.11% to Rs 2,510.99 crore, up from Rs 2,073.23 crore in FY23. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw substantial growth, rising to Rs 398.58 crore as of March 31, 2024, compared to Rs 186.18 crore the previous year. This strong growth was primarily driven by rising demand for its solar modules in both domestic and international markets.

On the capacity front, Vikram Solar currently operates with an installed manufacturing capacity of 4.50 gigawatts (GW). The company has set clear expansion targets, aiming to increase its capacity to 10.50 GW by FY26 and further to 15.50 GW by FY27. As part of its vertical integration strategy, Vikram Solar is also developing a 3.00 GW solar cell manufacturing facility in Tamil Nadu, strengthening its position as a fully integrated solar energy company.

Upcoming IPO: Vikram Solar Limited IPO Face Value and Managers

As Vikram Solar gears up for its upcoming IPO, the company plans to utilise the proceeds to drive its ambitious growth and scale up its manufacturing capacity. By expanding its operations, the company aims to meet the increasing demand for solar energy solutions and strengthen its footprint in the renewable energy market. This IPO presents a compelling opportunity for investors interested in India's fast-growing clean energy sector.

The public issue carries a face value of Rs 10 per equity share. The IPO is being managed by a group of prominent investment bankers, including JM Financial Ltd, Nuvama Wealth Management Ltd, UBS Securities India Pvt Ltd, Equirus Capital Pvt Ltd, and PhillipCapital (India) Pvt Ltd. Link Intime India Pvt Ltd has been appointed as the official registrar for the issue.