Vikram Solar has filed a draft red-herring prospectus (DRHP) with Securiy Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO will consist of a fresh issue of shares worth up to Rs 15 billion, along with an offer for sale of up to 17.45 million equity shares by the company’s promoter group. The IPO includes a reserved portion for eligible employees, with a discount on shares for employees participating in the subscription. It has a face value of Rs 10 per equity share. Additionally, as part of a pre-IPO placement, the company may issue specified securities worth Rs 3 billion. The offer will follow a book-building process, with no more than 50 per cent of the shares allocated to qualified institutional buyers, a minimum of 15 per cent to non-institutional bidders, and at least 35 per cent for retail individual investors. The funds raised will be utilised to fund capital expenditures, including Rs 7.93 billion for investment in VSL Green Power for setting up a 3,000 MW solar cell and module manufacturing facility. An additional Rs 6.03 billion will be allocated for expanding the existing solar module manufacturing capacity from 3,000 MW to 6,000 MW. Other funds will be set aside for general corporate purposes. Nuvama Wealth Management is the book-running lead manager for the IPO.