Vikram Solar gets Sebi nod to mop-up funds via IPO

Vikram Solar has received capital markets regulator Sebi's go ahead to raise funds through an initial public offering (IPO).

The IPO consists of a fresh issue of up to Rs 1,500 crore and an Offer-for-Sale (OFS) of up to 50 lakh equity shares by the selling shareholders.

Vikram Solar, which filed preliminary IPO papers with the markets regulator in March, obtained its observation letter on August 10, an update with the Securities and Exchange Board of India (Sebi) showed on Wednesday.

In Sebi's parlance, its observations imply its go ahead to float the IPO.

Vikram Solar is a leading domestic module manufacturer. It produces solar photo-voltaic (PV) modules and is an integrated solar energy solutions provider offering engineering, procurement and construction (EPC) services, and operations and maintenance (O&M) services.

Going by the draft papers, proceeds from the fresh issue will be utilised for setting up an integrated solar cell and solar module manufacturing facility with an annual production capacity of 2,000 MW.

The company has a global footprint through a sales office in the US and a procurement office in China and has supplied solar PV modules to customers in 32 countries, as of December 31, 2021.

In India, the company'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, Hindustan Petroleum Corporation Ltd and Keventer Agro. The company's international customers include Amp Solar Development Inc, Safari Energy LLC, Standard Solar Inc and Southern Current.

As of December 2021, the company had an order book of Rs 4,870 crore.

JM Financial Limited and Kotak Mahindra Capital Company Ltd are the book running lead managers to the public issue. The equity shares will be listed on BSE and NSE.