Rays Power Infra files DRHP with SEBI to raise Rs 11.5 billion

Rays Power Infra has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise up to Rs 11.5 billion through an initial public offering (IPO).

The IPO will comprise a fresh equity issue of Rs 9 billion and an offer-for-sale of up to Rs 2.5 billion by promoters and a shareholder.

According to the DRHP, Rs 5 billion from the proceeds will be directed to Rays Green Energy Manufacturing, a subsidiary, to part-fund a 1.5 GW solar cell manufacturing plant in Madhya Pradesh. Another Rs 2 billion will be allocated for working capital, while the balance will be used for general corporate purposes.

The IPO will follow the book-building route, with allocations set at 50 per cent for qualified institutional buyers, 15 per cent for non-institutional investors, and 35 per cent for retail investors. The company may also raise up to Rs 1.8 billion through a pre-IPO placement.