Vikram Solar has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI as it plans to list on the stock exchanges through an IPO.
Vikram Solar has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI as it plans to list on the stock exchanges through an IPO. The company plans to raise Rs 1,500 crore through an issue of fresh equity shares and more through an offer for sale (OFS) as part of the public issue. Among the sellers of Vikram Solar shares as part of the OFS will also be Anil Chaudhary — part of the promoter group. Vikram Solar is a domestic module manufacturer. The company manufactures solar photovoltaic (PV) modules and is an integrated solar energy solutions provider offering engineering, operations and maintenance services, and procurement and construction services.
The company will raise Rs 1,500 crore by issuing fresh equity shares of face value Rs 10 each while investors will sell up to 50 lakh equity shares. Along with Anil Chaudhary, other sellers include Girish Kumar Madhogaria, Pushpa Madhogaria, and Vikram India Limited. The company will only get Rs 1,500 crore, which it plans to use to fund capital expenditure for setting up a 2,000 MW integrated solar cell and solar module manufacturing facility in Tamil Nadu.
Vikram Solar, in the DRHP, said it may go for a pre-IPO placement of Rs 300 crore. “If the Pre-IPO Placement is completed, the size of the Fresh Issue will be reduced by the amount raised from the Pre-IPO Placement and the minimum Offer size shall constitute at least 10% of the post-Offer paid-up Equity Share capital,” the DRHP said.
50% of Vikram Solar’s IPO will be reserved for Qualified Institutional Buyers (QIB) while 35% will be for retail investors, and 15% for Non-institutional Investors.
Some of Vikram Solar’s customers include NTPC, Rays Power Infra, Amp Energy India, Azure Power India, West Bengal State Electricity Distribution Company Ltd, Solar Energy Corporation of India, West Bengal Power Development Corporation Ltd, Hindustan Petroleum Corporation Ltd, among others.
At the end of the previous calendar year, the company had an order book, including framework agreement/letters of intent, of Rs 4,870 crore, of which Rs 1,621 crore comprise projects/ operations which are already under execution and Rs 3,248 crore comprise projects which are yet to be executed.
Vikram Solar had a revenue of Rs 1,627 crore in the previous fiscal year with a net profit of Rs 38.19 crore. The company’s revenue has dropped over the last few years.
JM Financial and Kotak Mahindra Capital are the Book running lead managers of the company.