India’s Solar Power Giant Set to Raise Funds for Massive Expansion in PV Module and Cell Manufacturing
Vikram Solar Limited, homegrown solar PV module manufacturer with over 15 years of industry expertise, has received the green light from capital markets regulator SEBI for its much-anticipated Initial Public Offering (IPO).
This significant development paves the way for the company to raise substantial funds, propelling its ambitious expansion plans and contributing to India’s burgeoning renewable energy landscape.
The IPO, featuring equity shares with a face value of Rs 10, comprises a fresh issue of shares totaling up to Rs 1,500 crore and an Offer For Sale (OFS) of up to 17.45 million equity shares by existing promoter and promoter group selling shareholders.
Strategic Investments for Growth and Capacity Expansion
Vikram Solar intends to strategically deploy the net proceeds from the fresh issuance to bolster its manufacturing capabilities. A significant portion, Rs 793.36 crore, is earmarked for partial funding of capital expenditure.
This investment, channeled through its wholly-owned subsidiary VSL Green Power Private Limited, will facilitate the establishment of an integrated 3,000 MW solar cell and 3,000 MW solar module manufacturing facility.
Furthermore, Rs 602.95 crore will be utilized to expand the existing solar module manufacturing facility from 3,000 MW to 6,000 MW (Phase II) at the same site, also via VSL Green Power Private Limited. The remaining funds will be allocated for general corporate purposes.
A Powerhouse in Solar Manufacturing
As one of India’s largest solar PV module manufacturers by installed capacity, Vikram Solar boasts a robust 4.50 GW of installed manufacturing capacity. This positions the company among the top pure-play non-captive manufacturers in the Ministry of New & Renewable Energy’s Approved List of Module Manufacturers (ALMM).
With manufacturing facilities strategically located at Falta SEZ in Kolkata, West Bengal, and Oragadam in Chennai, Tamil Nadu, Vikram Solar is well-positioned to meet escalating demand. The company has aggressive expansion plans, aiming to increase its installed manufacturing capacity to an impressive 10.50 GW by Fiscal 2026 and further to 15.50 GW by Fiscal 2027. Demonstrating a commitment to backward integration, Vikram Solar is also establishing a 3.00 GW solar cell manufacturing facility in Tamil Nadu.
Innovating with High-Efficiency Solar Technology
Vikram Solar’s product portfolio showcases a commitment to cutting-edge solar technology. Their offerings include high-efficiency solar PV modules such as n-type monocrystalline silicon-based TOPCon and HJT modules, as well as p-type monocrystalline silicon-based PERC modules.
These modules are available in both bifacial (glass-to-glass/glass-to-transparent back sheet) and monofacial (glass-to-white/black back sheet) configurations, catering to diverse project requirements.
Strong Financial Performance
The company has demonstrated robust financial growth. Vikram Solar’s revenue from operations surged 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 also saw a significant jump, reaching ₹398.58 crore as of March 31, 2024, compared to ₹186.18 crore in the previous fiscal year.
Key Advisors for the IPO
The IPO is being managed by an experienced consortium of book-running lead managers, including JM Financial Limited, Nuvama Wealth Management Limited, UBS Securities India Private Limited, Equirus Capital Private Limited, and PhillipCapital (India) Private Limited. Link Intime India Private Limited is serving as the registrar for the issue.
This IPO marks a pivotal moment for Vikram Solar, as it seeks to harness capital market support to further solidify its position as a leader in India’s rapidly expanding renewable energy sector.