Saatvik Moves Forward To Issue IPO, Files DRHP With SEBI

Saatvik Moves Forward To Issues IPO, Filed DHRP With SEBI

Ambala-based solar module manufacturing company Saatvik Solar has now taken its initial formal steps to venture into the stock market. The solar company has now filed its documents with the Securities and Exchange Board of India (SEBI). The firm plans to issue its Initial Public Offering (IPO) to raise a quantum of Rs 1,150 crore. 

As per the Draft Red Herring Prospectus (DRHP) filed by Saatvik Solar, the proceeds of the funding from this will be reputed for the prepayment or scheduled re-payment for its outstanding borrowings, investment in its new subsidiary Saatvik Solar Industries Pvt Ltd and new investment for opening up a new 4 GW of solar module manufacturing unit in Odisha. 

On an expansion spree

Prashant Mathur, CEO of Saatvik Solar in a recent conversation with Saur Energy said at REI 2024 (Oct 3, 2024) that it has planned to scale up its capacity from 2 GW (as of Oct 3, 2024) to 3.8 GW within the next few months this fiscal. It has three plants at Ambala. It has also planned to start solar cell manufacturing with a capacity of 3 GW in TOPCon technology.

“By 2025, we will have a total capacity of 3 GW of solar cell manufacturing and 7.8 GW of module manufacturing capacity. Apart from this, we are also planning to start the production of other ancillaries like aluminium frames, EPE and others to support our manufacturing,” Mathur told Saur Energy. 

Proceeds of the funds

The Saatvik group recently also bagged an order from Maharashtra (MSEDCL) for solar pumps.  The firm has planned to issue shares of Rs 850 crore. It has also planned to issue an offer for sale (OFS) of Rs 300 crore by the promoters. Currently, 90% of the stake in the firm is owned by the promoters of the solar company. 

Context

This planned entry of Saatvik Solar into the stock market with the issue of IPO coincides with heady days for the sector, with a record stock market rush topped by the ongoing Rs 10,000 crore issue of developer NTPC Green energy. In the past two few months, two significant solar module makers listed at Indian stock exchange-Premier Energies and Waaree Energies. This is in addition to the existence of other solar manufacturing firms like Websol Energies which is into solar cell manufacturing. Solar pump makers Shakti Pumps is already there in the market and enjoying a good valuation too, besides a slew of firms in the SME Exchanges and more.

With many more in line to take advantage of a receptive market (so far), we have covered in detail on the possible risks and opportunities.