Vikram Solar Limited, one of India’s largest solar photovoltaic (PV) module manufacturers in terms of installed capacity, with more than 15 years of experience in the industry as of March 31, 2024, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The IPO, with a face value of ₹10 per equity share, comprises a mix of a fresh issue of shares worth up to ₹1,500 crore and an offer for sale (OFS) of up to 17.45 million equity shares by promoter and promoter group selling shareholders.

The company intends to utilize the Net Proceeds from the fresh issuance to the extent of ₹793.36 crore for partial funding of capital expenditure through investment in its wholly owned subsidiary, VSL Green Power Private Limited, for setting up an integrated 3,000 MW solar cell and 3,000 MW solar module manufacturing facility at the project site. ₹602.95 crore will be used to fund the expansion of the solar module manufacturing facility set up under Phase I at the same site—from 3,000 MW to 6,000 MW (Phase II of the project)—also through investment in VSL Green Power Private Limited; and for general corporate purposes.

Vikram Solar Limited is one of India’s largest solar photovoltaic (PV) module manufacturers in terms of installed capacity, with more than 15 years of experience in the industry. With 4.50 GW of installed manufacturing capacity for solar PV modules, it has one of the largest enlisted capacities among pure-play non-captive manufacturers in the Ministry of New & Renewable Energy’s Approved List of Module Manufacturers (ALMM).

The company has manufacturing facilities at Falta SEZ in Kolkata, West Bengal, and Oragadam in Chennai, Tamil Nadu. To meet growing demand, it is currently undertaking significant greenfield and brownfield expansion plans and aims to increase its installed manufacturing capacity to up to 10.50 GW by Fiscal 2026 and up to 15.50 GW by Fiscal 2027. Furthermore, it is backward integrating into the solar value chain by establishing a 3.00 GW solar cell manufacturing facility in Tamil Nadu.

Vikram Solar’s portfolio of solar energy products consists of high-efficiency solar PV modules such as n-type monocrystalline silicon-based Tunnel Oxide Passivated Contact (TOPCon) modules; n-type monocrystalline silicon-based heterojunction technology (HJT) modules; and p-type monocrystalline silicon-based Passivated Emitter and Rear Contact (PERC) modules. These are offered as either bifacial (glass-to-glass/glass-to-transparent back sheet) or monofacial (glass-to-white/black back sheet) modules.

Vikram Solar’s revenue from operations grew by 21.11%, from ₹2,073.23 crore in Fiscal 2023 to ₹2,510.99 crore in Fiscal 2024, driven by increased domestic and export volumes. EBITDA stood at ₹398.58 crore as of March 31, 2024, compared to ₹186.18 crore as of March 31, 2023.

JM Financial Limited, Nuvama Wealth Management Limited, UBS Securities India Private Limited, Equirus Capital Private Limited, and PhillipCapital (India) Private Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the issue.