Homegrown EPC company takes a major step towards public listing—explore its IPO details, business model, financials, and growth prospects.
Prozeal Green Energy Limited, India’s one of the largest solar EPC company in terms of revenue for Fiscal 2024 (as per a Crisil Report), has taken a significant step towards going public. The company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a milestone in its growth journey. Here are five key things to know about this IPO:
1. IPO Size and Structure
Prozeal Green Energy plans to raise up to ₹7,000 million through its initial public offering (IPO). The offer consists of a fresh issue worth ₹3,500 million and an offer for sale (OFS) of ₹3,500 million. Promoters Shobit Baijnath Rai and Manan Hitendrakumar Thakkar are offloading shares worth ₹1,685 million each, alongside other investor shareholders.
2. Utilization of Funds
The company intends to utilize the net proceeds from the IPO to fund its long-term working capital requirements, invest in subsidiaries for debt repayment, and support general corporate purposes. This strategic allocation aims to strengthen its financial position and fuel future expansion.
3. Business Model and Expertise
Prozeal Green Energy specializes in providing end-to-end renewable energy solutions, focusing on engineering, procurement, and construction (EPC) services for solar power projects. The company follows a “Plug-and-Play” solar park model, ensuring seamless project execution from conceptualization to commissioning, including land acquisition and regulatory approvals.
4. Impressive Project Portfolio
Since its inception in 2013, the company has completed 182 solar projects with a total installed capacity of 783.98 MWp across 17 Indian states and Nepal. Its notable clients include Torrent Power, AM Green Energy, GHCL, Alembic Pharmaceuticals, and Asahi Songwon Colors, reinforcing its strong industry presence.
5. Strong Financial Performance
Prozeal Green Energy has showcased remarkable financial growth, with revenue surging from ₹2,871.85 million in Fiscal 2022 to ₹9,488.82 million in Fiscal 2024, reflecting a CAGR of 81.77%. The company’s EBITDA rose from ₹115.44 million to ₹1,247.36 million during the same period, marking a CAGR of 228.71%. Meanwhile, net profit increased from ₹100.71 million in Fiscal 2022 to ₹922.44 million in Fiscal 2024, highlighting its strong profitability trajectory.
With a solid business foundation and a rapidly expanding order book of ₹22,209.22 million (as of September 30, 2024), Prozeal Green Energy’s IPO is expected to draw significant investor interest. As the company gears up for its public listing, it remains a key player in India’s growing renewable energy sector.
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