Rayzon Solar files DRHP with Sebi to launch Rs 1,500 crore IPO; check details

Gujarat-based Rayzon Solar, a leading manufacturer of solar photovoltaic modules in India, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The offering, with a face value of Rs 2 per share, is entirely a fresh issue targeting to raise up to Rs 1,500 crore, with no offer for sale component included. Additionally, the IPO includes a reserved subscription portion for eligible employees at a discounted rate.

The proceeds from the IPO are earmarked primarily for investment in its wholly-owned subsidiary, Rayzon Energy Private Limited (REPL). A total of Rs 1,265 crore is allocated to finance part of the costs associated with establishing a 3.5 GW solar cell manufacturing facility using TOPCon technology at Kathvada, Surat, Gujarat. The remaining funds will be directed towards general corporate purposes. Rayzon Solar may also consider a pre-IPO placement of securities worth Rs 300 crore, which would adjust the fresh issue size accordingly.

Rayzon Solar commenced its operations in 2017 under the name Rayzon Green Energies, initially focusing on the manufacture of solar PV modules. It has since expanded its production capacity from 40 MW in 2018 to a remarkable 6.00 GW by March 2025. The company operates two production facilities in Karanj and Sava, each with a solar PV manufacturing capacity of 3.00 GW. An additional 2.00 GW capacity is anticipated to become operational by October 2025.

The company’s strategic expansion includes setting up a 3.50 GW solar cell manufacturing unit using advanced tunnel oxide passivated contact (TOPCon) technology, expected to come online by fiscal 2027. Rayzon Industries Private Limited, another subsidiary, is developing a facility for aluminium extrusion and anodizing capable of producing 19,800 MT per annum, scheduled to begin operations in July 2025.

Rayzon Solar's diverse product portfolio features bifacial modules utilising N-type TOPCon cells and P-type Mono PERC cells. The company also offers monofacial modules with a variety of back sheet options and full black variants for both bifacial and monofacial modules. It caters to a broad customer base and government programmes like the Pradhan Mantri Surya GharMuft Bijlee Yojana and the PM-KUSUM initiative.

The company's financial performance has seen significant growth, with revenue from operations increasing from Rs 261.65 crore in fiscal 2022 to Rs 1,272.85 crore in fiscal 2024, reflecting a compound annual growth rate (CAGR) of 120.56%. The profit after tax soared from Rs 3.91 crore in fiscal 2022 to Rs 60.94 crore in fiscal 2024. For the nine-month period ending December 31, 2024, the company's revenue and net profit stood at Rs 1,957 crore and Rs 239.03 crore, respectively.

SBI Capital Markets Limited, Ambit Private Limited, and IIFL Capital Services Limited are serving as the book-running lead managers for the IPO, with KFin Technologies Limited acting as the registrar. The equity shares are proposed to be listed on the BSE and NSE.

The IPO follows a book-building process, with allocation on a proportionate basis. Up to 50% of the offer is reserved for qualified institutional buyers, a minimum of 15% for non-institutional bidders, and 35% for retail individual bidders. Such structured allocation aims to ensure a broad participation from different investor categories.

Rayzon Solar's strategic focus on expanding its manufacturing capabilities aligns with the growing demand for renewable energy solutions in India. The company's robust order book of 3.60 GW as of May 31, 2025, signifies its strong market presence and commitment to meeting future energy needs.

The IPO aims to bolster Rayzon Solar's position in the competitive solar industry by enhancing capacity and technology deployment, ensuring its readiness to capture emerging opportunities in the renewable sector.