Upcoming IPO: Vikram Solar Files Draft Papers For Maiden Issue, Check Details Here

The maiden listing comprises an initial issue of fresh equities worth Rs 1,500 crore and an offer-for-sale (OFS) of around 17.45 million shares by the promoter group

Vikram Solar submitted draft papers for its maiden offering with the Securities and Exchange Board of India (SEBI) on Tuesday. The solar module maker sought permission from the markets regulator to raise Rs 1,500 crore via an initial public offering (IPO). 

The maiden listing comprises an initial issue of fresh equities worth Rs 1,500 crore and an offer-for-sale (OFS) of around 17.45 million shares by the promoter group. The firm, based out of Kolkata, said that it could also consider issuing specified securities worth up to Rs 300 crore as a pre-IPO placement, reported PTI.

From the overall issue, around 50 per cent of the shares would be set aside for qualified institutional buyers, while 15 per cent would be reserved for non-institutional bidders. Meanwhile, 35 per cent of the remaining shares would be open for retail subscriptions by individual investors.

The firm in its draft red herring prospectus (DRHP) said that it plans to utilise the funds raised from the issue towards several purposes. About Rs 793.36 crore would be set aside for capital expenditure via investment in its wholly owned subsidiary VSL Green Power Private Limited for establishing a 3,000-MW solar cell and module manufacturing facility. 

Further, it would use Rs 602.95 crore for augmenting its solar module manufacturing facility from 3,000 MW to 6,000 MW. The issue would also include a quota set aside for eligible employees, along with a discount for those taking part in the employee subscription portion.

The company further revealed that it has an order book of 8,214.63 MW, exceeding its overall rated capacity for 2023-24 fiscal year (FY24). The book-running lead managers of the issue include J M Financial, UBS Securities, Equirus Capital, Nuvama Wealth Management, and PhillipCapital. Meanwhile, the registrar for the IPO is Link Intime India Private Limited.