Vikram Solar, a major module manufacturer, has filed its draft red herring prospectus (DRHP) with capital market regulator Sebi to raise funds via initial public offering (IPO). The IPO consists fresh issue of up to Rs 1,500 crore and Offer For Sale (OFS) of up to five million equity shares by the company’s promoters and existing shareholders.

According to the DRHP, the OFS comprises selling up to 3.62 million shares by Anil Chaudhary, up to 0.26 million shares by Girish Kumar Madhogaria, up to 0.13 million shares by Pushpa Madhogaria and up to 1 million shares by Vikram India.

The Kolkata-based company said it may, in consultation with the book running lead managers, consider a Pre-IPO Placement of up to Rs 300 crore. The book running lead managers to the offer are JM Financial and Kotak Mahindra Capital. The equity shares are proposed to be listed on BSE and NSE.

The company has proposed to utilise the net proceeds of the IPO towards funding capital expenditure of around Rs 1,238.80 crore for setting up of a 2,000 MW integrated solar cell and solar module manufacturing facility in Tamil Nadu and general corporate purposes.

Vikram Solar (VSL) was incorporated in 2005 and commenced solar PV module manufacturing operations in 2009 with an annual rated production capacity of 12 MW. The company had substantially increased its capabilities to a cumulative annual installed capacity of 2.5 GW (inclusive of trial production i.e. which is not yet commercially available) across its factories located at Falta SEZ, Kolkata and at Orgadam, Chennai.

VSL has a global footprint through a sales office in the United States of America and a procurement office in China and has supplied solar PV modules to customers in 32 countries, as of December 31, 2021. In India, VSL’s customers include National Thermal Power Corporation (NTPC), Rays Power Infra, Amp Energy India, Azure Power India, West Bengal State Electricity Distribution Company, Solar Energy Corporation of India, West Bengal Power Development Corporation, Hindustan Petroleum Corporation, Keventer Agro, while the international customers include Amp Solar Development, Safari Energy, Standard Solar and Southern Current.

In the last financial year, the company’s consolidated total income stood at Rs 1627.60 crore, while profit after tax was Rs 38.19 crore.