Kolkata-based Vikram Solar Limited, a solar photovoltaic (PV) module manufacturers, has filed its draft red herring prospectus (DRHP) with the market regulator SEBI to raise funds through a public issue.
The company is gearing up for an Initial Public Offering (IPO) that could raise up to Rs 1,500 crore through the fresh issuance of equity shares. Along with this, the promoter group of the company will offer 17.45 million shares as part of the Offer for Sale (OFS).
Employee Benefits and Pre-IPO Placement
The company has set the face value of its shares at Rs 10 per share. Moreover, it has reserved a portion of the IPO for eligible employees.
For those participating in the employee subscription portion, a special discount is also included. Vikram Solar may also consider a pre-IPO placement of up to Rs 300 crore, which could adjust the final IPO size accordingly.
The offer will follow a book-building process, allocating shares to institutional buyers (up to 50 per cent), non-institutional bidders (minimum 15 per cent), and retail investors (at least 35 per cent).
Utilisation of the funds
The capital raised from its IPO will be used as follows:
– Rs 793.36 crore will go towards capital expenditures for setting up a new 3,000 MW solar cell and module manufacturing facility under its wholly-owned subsidiary, VSL Green Power Private Limited.
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– Rs 602.95 crore will be directed toward doubling the capacity of its existing solar module manufacturing plant from 3,000 MW to 6,000 MW.
Financial Highlights
The company reported a revenue growth of 21.11 per cent in Fiscal 2024, reaching Rs 2,510.99 crore and profit after tax surging by 450.10 per cent.