Rayzon Solar Limited has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to Rs 15 billion through an initial public offering (IPO) of equity shares.
The company intends to utilise up to Rs 12.65 billion from the net proceeds to invest in its wholly owned subsidiary, Rayzon Energy and partly finance the development of a 3,500 MW tunnel oxide passivated contact solar cell manufacturing facility in Surat, Gujarat. Moreover, Axis Bank has approved a loan of Rs 3 billion for the facility. The estimated cost of establishing the solar cell manufacturing plant is Rs 16.51 billion. The facility is currently under development and is expected to become operational by the financial year 2026-27. The remaining proceeds from the IPO will be used for general corporate purposes. The book-running lead managers for the issue are SBI Capital Markets, Ambit and IIFL Capital.