Solar EPC Firm Solar91 Cleantech Gets Nod For SME IPO launch

Solar EPC Firm Solar91 Cleantech Gets Nod For SME IPO launch

Rajasthan-based solar EPC company Solar91 Cleantech has received the necessary approvals to proceed with its Initial Public Offering (IPO). The company announced that it has secured approval for its SME IPO from the BSE and will soon be listed as a public company on the exchange. With increased funding, the company now proposed to become an Independent Power Producer (IPP).

IPO Details

Solar91 Cleantech plans to issue up to 54,36,000 equity shares, aiming to raise approximately ₹100 crore through the IPO. The company specializes in providing turnkey Engineering, Procurement, and Construction (EPC) services for renewable energy projects across India.

About Solar91 Cleantech

Founded in 2015 by a team of Indian Institute of Technology (IIT) alumni, Solar91 Cleantech offers EPC services for both grid-connected solar projects and off-grid solar solutions.

“Further, we are moving towards the IPP Model (Independent Power Producer), where we will build our own portfolio of solar projects. In this, we create an SPV (‘Special Purpose Vehicle’) as a 100% subsidiary to build, own, operate, and maintain solar power projects. The subsidiary generates revenue by entering into Power Purchase Agreements (‘PPA’) with Discoms (Electricity Distribution Companies) to sell electricity units generated from our projects,” the company outlined in its Draft Red Herring Prospectus (DRHP).

Leadership and Plans for IPO Proceeds

The company is led by Saurabh Vyas, Prateek Agrawal, Sandeep Gurnani, and Dhawal Vasavada, who serve as its promoters. Solar91 Cleantech plans to allocate the net proceeds from the IPO as follows:

• ₹60 crore for investments in its subsidiaries to develop solar projects under the IPP model.
• ₹20 crore for working capital requirements.

The remaining funds will be utilized for general corporate purposes and to cover IPO-related expenses. Post-IPO, the promoters will retain 51.26% of the company’s total shares.

Focus on Independent Power Production

The company plans to utilize the raised funds to transition into the Independent Power Producer (IPP) model. This involves investing in subsidiaries to develop, own, and operate solar power projects. The move aligns with Solar91 Cleantech’s strategy to diversify its revenue streams while meeting its working capital and operational funding needs.