Vikram Solar Joins IPO Line, Files DRHP

Kolkata-based Vikram Solar Limited, a leading, and one of the earliest solar photo-voltaic module manufacturers at scale in India, has filed its draft red herring prospectus (DRHP) with SEBI to raise funds through an initial public offering (IPO).

With over 15 years of industry experience as of 31 March 2024, Gyanesh Chaudhary led Vikram Solar aims for an IPO comprising fresh issues of shares up to ₹1,500 crore and an offer for sale (OFS) of up to 17.45 million equity shares by its promoter group. The IPO has a face value of ₹10 per equity share and includes a reservation for eligible employees, alongside a discount for those participating in the employee subscription portion. In consultation with the book-running lead manager, the company may also consider issuing specified securities up to ₹300 crore as a “pre-IPO placement.” The offer will use a book-building process, allocating not more than 50% for qualified institutional buyers, a minimum of 15% to non-institutional bidders, and at least 35% for retail individual investors.

With this, the firm joins other industry manufacturers, both big and small that have chosen to go public, supported by a booming stock market and in particular, an appetite for green energy firms.

Vikram Solar  plans to use the net proceeds from fresh issuance, dedicating ₹793.36 crore for capital expenditure through investment in its wholly owned subsidiary, VSL Green Power Private Limited, to set up a 3,000 MW solar cell and module manufacturing facility. Additionally, ₹602.95 crore is earmarked for expanding the existing solar module manufacturing facility from 3,000 MW to 6,000 MW, along with allocations for general corporate purposes.

Vikram Solar commenced its manufacturing journey in 2009 with a capacity of 12.00 MW, expanding to 3.50 GW by the time of the DRHP filing. According to a CRISIL report, the company holds one of the largest capacities among non-captive manufacturers on the Ministry of New & Renewable Energy’s Approved List of Module Manufacturers (ALMM), with 2.43 GW listed as of July 2024. Recognized as a Tier 1 manufacturer by BloombergNEF since 2014, Vikram Solar continues to reside in this tier in 2024.

In response to growing market demand, the company is actively pursuing expansions to increase production capacity to 10.50 GW by Fiscal 2026 and 15.50 GW by Fiscal 2027, including a 3.00 GW solar cell manufacturing plant in Tamil Nadu.

With a presence across 23 states and three union territories, Vikram Solar operates through a network of distributors, dealers, and system integrators. It has a sales office in the U.S. and a procurement office in China, supplying solar PV modules to customers in 39 countries as of March 31, 2024.

Vikram Solar serves clients, both PSU and private, including National Thermal Power Corporation, Neyveli Lignite Corporation, and more. With extensive experience in executing EPC projects, it has completed or is engaged in over 275 projects totaling 1.03 GW capacity as of March 31, 2024. The company is endorsed by the UN Global Compact and is among the 93 Indian firms approved by the Science Based Targets Initiative (SBTI) for its sustainability efforts.

As of the DRHP date, Vikram Solar held an order book of 8,214.63 MW, significantly exceeding its total rated capacity for Fiscal 2024. In CY 2024, notable contracts included a 397.70 MW project from NTPC Renewable Energy and others, along with a significant 1.00 GW order from a JSW Energy subsidiary. Vikram Solar’s revenue grew by 21.11% to ₹2,510.99 crore in Fiscal 2024, with a profit after tax rise of 450.10%. The book-running lead managers for the IPO include Nuvama Wealth Management and others, with Link Intime India Private Limited as the registrar.

Among notable solar firms to have listed recently are Hyderabad based manufacturer Premiere Energies, even as India’s largest Module maker, Waaree Energies IPO is also expected to open in October.