Vikram Solar files for IPO to raise funds for 2GW cell and also module production facility

Mar 24, 2022 06:21 PM ET
  • Vikram Solar has actually filed draft papers for its initial public offering (IPO) as it seeks to raise funds for a 2GW integrated cell as well as module factory in India.
Vikram Solar files for IPO to raise funds for 2GW cell and also module production facility
Image: Vikram Solar

Papers filed with the Securities Exchange Board of India expose Vikram plans to release a fresh issue of INR 15 billion (US$ 197 million) worth of shares as well as sell up to 5 million shares by its existing shareholders as well as promoters. The company may also take into consideration a pre-IPO placement to raise INR 3 billion.

A lot of the proceeds will be utilized for funding capital expenditure for setting the 2GW facility in the Indian state of Tamil Nadu via its wholly owned subsidiary VSL Green Power.

About that facility, Vikram exposed it has submitted a bid under India's production-linked motivation (PLI) scheme to raise the integrated capacity of the plant from 2GW to a total of 3.6 GW of modules and solar cells.

The supplier currently operates a 1.2 GW module assembly facility in West Bengal-- which it is intending to ramp up to 3GW-- along with a 1.3 GW solar module production facility in Tamil Nadu that was ushered in last year.

The company stated that if it is an effective bidder in the PLI scheme, then post-commissioning of the aforementioned facilities and also growths, its total annual ranked capacity for module production would raise from 2.5 GW to 7.9 GW, of which 3.6 GW would be integrated with cells.

In its fiscal year finishing March 2021, Vikram uploaded revenues of INR 16.1 billion (US$ 211 million).

According to new research from working as a consultant JMK Research & Analytics, India's nameplate module production is readied to increase from the present level of 18GW to 36GW in the next 2 years.

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