Rays Power Infra has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to Rs 11.5 billion through an initial public offering (IPO).
The issue includes a fresh equity issue of Rs 9 billion and an offer-for-sale of up to Rs 2.5 billion by promoters and a shareholder. According to the DRHP, Rs 5 billion of the proceeds will be allocated to its subsidiary, Rays Green Energy Manufacturing for part-funding a 1.5 GW solar cell manufacturing plant in Madhya Pradesh. An additional Rs 2 billion will be utilised for working capital, with the remainder earmarked for general corporate purposes. The IPO will be conducted via book-building, with allocations reserved for qualified institutional buyers (50 per cent), non-institutional investors (15 per cent), and retail investors (35 per cent). The company may also raise up to Rs 1.8 billion through a pre-IPO placement.