Solar module manufacturer Emmvee Photovoltaic Power has filed the DRHP with SEBI to raise Rs 3,000 crore via IPO. The Bengaluru-based solar photovoltaic module manufacturer is looking to raise Rs 2,143.86 crore through a fresh issue and also through the sale of promoter shares via offer for sale for Rs 856.14 crore.
In its DRHP, the company has outlined plans to raise Rs 428.77 crore via pre-IPO placement. If the proposed placement goes through, the fresh issue size will be reduced.
Emmvee Photovoltaic IPO: Proceeds to be used for debt repayment
Emmvee Photovoltaic Power said that it aims to utilise a large portion of the offer-for-sale money for the repayment of its debt. The DRHP documents show that the company’s total debt stood at around Rs 1,950 crore.
The company said that Rs 1,607.90 crore will be used for repayment or prepayment of loans and interest taken by the company and its subsidiaries. The rest of the fresh issue capital will be utilised for the general corporate purpose, the company added.
The company’s promoters, Manjunatha Donthi Venkatarathnaiah and Shubha Manjunatha Donthi are offloading shares worth Rs 428.07 crore each in the offer sale.
Emmvee Photovoltaic’s business
Emmvee Photovoltaic was founded in and primarily manufactures solar photovoltaic modules. However, the group has been involved in solar water heating systems manufacturing since 1992. The company says that besides India, it has a good business presence in Germany as well.
The company has a solar PV module manufacturing capacity of 7.80 GW and a solar cell production capacity of 2.94 GW. Earlier in May, the company inaugurated a 2 GW manufacturing facility near Bengaluru International Airport.
Last month, Emmvee Photovoltaic bagged a large order from KPI Green Energy. The company secured an order worth Rs 1500 crore for the supply of PV modules for KPI Green’s upcoming solar project in Gujarat.