Vikram Solar IPO: Company Files Draft Papers To Raise Funds Via IPO

Vikram Solar Ltd has filed draft papers with the market regulator Securities Exchange Board of India (SEBI). The draft paper was filed by the company to seek money through an initial public offering (IPO).

The IPO comprises of a Rs 1,500 crore new issuance and a sale of up to five million shares by the company's existing shareholders and promoters. According to the firm's DRHP, it may contemplate a Rs 300 crore pre-IPO placement.

The IPO consists of a fresh issue of Rs 1,500 crore and offers for sale (OFS) of up to five million shares by its existing shareholders and promoters. Anil Chaudhary will sell up to 3.62 million shares, Girish Kumar Madhogaria will sell up to 2.58 lakh shares, Pushpa Madhogaria will sell up to 1.27 lakh shares, and Vikram India Ltd will sell up to 1 million shares in its OFS.

The firm may consider a pre-IPO placement of Rs 300 crore, the firm said in its DRHP.

The Rs 1,238.80 crore raised would be utilized to pay capital expenditure for the company's wholly-owned subsidiary VSL Green Power Pvt Ltd to build a 2000 megawatt integrated solar cell and solar module manufacturing facility in Tamil Nadu.

Kotak Mahindra Capital Co Ltd and JM Financial are the lead managers to the Public issue.

The company has a domestic market share of about 19 percent (measured as a percentage of operating modules capacity) and 2.5 GW of installed manufacturing capacity for solar PV modules (including trial production, which is not yet commercially accessible) as of December 2021. It also established a sales office in the United States and a procurement office in China and has since provided solar PV modules to clients in 32 countries.

Its total revenue for fiscal 2021 was Rs 1,610.14 crore, down from Rs 1,639.68 crore the previous year. The net profit for the period was Rs 56.20 crore, up from Rs 30.44 crore the previous year. Its revenue for the September quarter was Rs 597.85 crore, with a net loss of Rs 18.96 crore. The company owes Rs 729.42 crore in total debt as of September 2021.

Vikram Solar

Vikram Solar is the second-largest solar energy firm in India in terms of revenue. The company is India's largest module manufacturer in terms of operational capacity, producing solar photovoltaic (PV) modules, as well as an integrated solar energy solutions provider that provides customers with engineering, procurement, and construction (EPC) services as well as operations and maintenance (O&M) services.
The company has plants in West Bengal and Tamil Nadu. One in Falta, Kolkata, with a current capacity of 1.2GW and expects to upgrade the production unit to 3GW by fiscal 2023. The second plant is in Tamil Nadu, where a new 2GW facility is planned.