Vikram Solar, a solar photovoltaic module manufacturer, has received approval from the Securities and Exchange Board of India (SEBI) for an Initial Public Offering. The company will issue fresh shares of Rs 1500 crore and offer for sale (OFS) of up to 17.45 million equity shares by the promoter and promoter group selling shareholders.
Vikram Solar: IPO objective
The company is planning to utilise the capital from the fresh issue to fund capacity expansion. The company said that it will invest Rs 793.36 crore in the partial funding of its subsidiary VSL Green Power.
Through the subsidiary company, Vikram Solar is planning to set solar cell and solar module manufacturing facility. The company said the manufacturing facility will have a capacity to manufacture 3000 MW of solar cells and 3000 MW of solar modules.
Furthermore, the company said that it will invest an additional Rs 602.95 crore in the phase 2 expansion of the same manufacturing facility. In the second phase, the facility will have a capacity expansion from 3000 MW to 6000 MW of solar module manufacturing.
Vikram Solar’s capacity and revenue
Vikram Solar has a 4.5 GW of installed photovoltaic module manufacturing capacity. The company has manufacturing facilities in Kolkata and Chennai. With the establishment of new manufacturing facilities, the company is planning to increase its manufacturing capacity to 10.5 GW by FY26.
As per the company’s statement, Vikram Solar’s revenue in FY24 was Rs 2510 crore. The company posted a 21 percent growth in its yearly revenue as it stood at Rs 2071 crore in FY23. Its Ebitda stood at Rs 398.58 crore in FY24 compared to Rs 186.18 crore in the previous fiscal year.