Vikram Solar files for Rs 15 billion IPO with SEBI

Vikram Solar Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) comprising a fresh issue worth up to Rs 15 billion and an offer-for-sale (OFS) of 17.45 million equity shares by its promoters. The face value of each equity share is Rs 10, with a reservation for eligible employees, offering them a discount in the subscription segment.

The company may also consider a pre-IPO placement of up to Rs 3 billion. Of the funds raised, Rs 7.93 billion will be allocated for capital expenditure through its subsidiary, VSL Green Power Private Ltd, to establish a 3,000 MW solar cell and module manufacturing facility. Additionally, Rs 6.03 billion will go towards expanding its existing solar module manufacturing capacity from 3,000 MW to 6,000 MW, alongside funding for general corporate purposes.

Based near Kolkata, Vikram Solar is one of India’s largest solar photovoltaic module manufacturers, with a production capacity of 3.50 GW at the time of filing. Since its inception in 2009, it has grown from an initial capacity of 12 MW. According to CRISIL, Vikram Solar’s total capacity was 2.43 GW as of July 2024, making it one of the largest non-captive producers listed in the Ministry of New and Renewable Energy’s ALMM. Nuvama Wealth Management is among the lead managers for the IPO, with Link Intime India Private Ltd acting as registrar.