Vikram Solar gets Sebi nod for up to Rs 1,500 crore IPO

Solar photovoltaic module manufacturers Vikram Solar Ltd has received approval from the Securities and Exchange Board of India (Sebi) to proceed with its initial public offering (IPO). The IPO will include a fresh issue of shares valued at up to Rs 1,500 crore and an offer for sale of up to 17.45 million equity shares by promoters.

Vikram Solar plans to utilise a portion of the IPO proceeds, specifically Rs 793.36 crore, to invest in its subsidiary VSL Green Power Pvt Ltd. This investment will support the establishment of a new 3,000 MW solar cell and an equivalent module manufacturing facility. Additionally, Rs 602.95 crore is earmarked for expanding the solar module manufacturing capacity at the same site, increasing it from 3,000 MW to 6,000 MW as part of Phase II expansion efforts.

The company, renowned for its high-efficiency solar PV modules, offers innovative products such as n-type monocrystalline silicon-based TOPCon and HJT modules, as well as p-type monocrystalline silicon-based PERC modules. This diverse product portfolio has positioned Vikram Solar as a key player in the renewable energy sector.

In terms of financial performance, Vikram Solar reported a revenue increase of 21.11 per cent from Rs 2,073.23 crore in Fiscal 2023 to Rs 2,510.99 crore in Fiscal 2024. The company's EBITDA also saw significant growth, reaching Rs 398.58 crore as of March 31, 2024, up from Rs 186.18 crore the previous year. This growth is attributed to rising domestic and export demand for its solar modules.

Vikram Solar currently boasts an installed manufacturing capacity of 4.50 GW and is committed to further expansion. It plans to increase this capacity to 10.50 GW by Fiscal 2026 and 15.50 GW by Fiscal 2027. Furthermore, the company is undertaking backward integration with the development of a 3.00 GW solar cell manufacturing facility in Tamil Nadu.

As the company prepares for its IPO, it aims to leverage the funds raised to support its ambitious expansion plans, enhancing its production capabilities and capitalising on the growing demand for solar energy solutions. The IPO offers an attractive proposition for investors looking to invest in India's burgeoning renewable energy sector.

The IPO is structured with a face value of Rs 10 per equity share. The key players managing this IPO are JM Financial Ltd, Nuvama Wealth Management Ltd, UBS Securities India Pvt Ltd, Equirus Capital Pvt Ltd, and PhillipCapital (India) Pvt Ltd, with Link Intime India Pvt Ltd serving as the registrar.