Going Public with Ambitious Plans: Vikram Solar's IPO and Expansion Horizons
IPO Motives Unveiled
Solar energy company Vikram Solar receives Securities and Exchange Board of India (SEBI) approval for Initial Public Offering (IPO)
Venturing into the capital markets with a bang, solar photovoltaic module manufacturer Vikram Solar is readying for an Initial Public Offering (IPO), following approval from the Securities and Exchange Board of India (SEBI). The IPO aims to rally a whopping Rs 1500 crore via fresh shares, and an additional 17.45 million equity shares via offer for sale (OFS) by the promoter and associated parties [1][2]. The move comes as a strategic plot to fuel growth and pillar the company's dominance in the burgeoning clean energy market. The capital influx will be channeled towards investments in cutting-edge technology and facility upgrades, aligning with India's wider renewable energy targets [4].
Scaling Up: Expansion Blueprints
The fresh funds will largely be allocated for capacity enhancement:
- New Horizon: Manufacturing Facility: Almost Rs 800 crore will be invested towards establishing a state-of-the-art solar cell and module manufacturing facility with a capacity of 3,000 MW in Tamil Nadu's Tirunelveli district through VSL Green Power, a subsidiary [1][2][3].
- Expansion Phase 2: Approximately Rs 600 crore will be utilized to scale up the present manufacturing facility's solar module capacity, which will ascend from 3,000 MW to a staggering 6,000 MW [1][2][5].
Financial Fitness
Vikram Solar displays financial prowess with impressive growth:
- Revenue Uptick: In the past year, the company experienced a 21.11% increase in its revenue, surging from Rs 2,073.23 crore in Fiscal 2023 to a commendable Rs 2,510.99 crore in Fiscal 2024 [1].
- EBITDA Surge: EBITDA witnessed a significant surge, recording Rs 398.58 crore in Fiscal 2024, up from Rs 186.18 crore in the preceding financial year [1].
Forward Strides and Aspirations
Aspiring to solidify its standing as a key player in the renewable energy sector, Vikram Solar eyes a substantial escalation in installed capacity to a staggering 10.5 GW by Fiscal 2026 and 15.5 GW by Fiscal 2027 [3].
- The IPO by Vikram Solar, aiming to raise Rs 1500 crore, is not only for growth but also to solidify their dominance in the burgeoning clean energy market, thus expanding their business portfolio.
- A significant portion of the funds raised from the IPO, around Rs 800 crore, will be invested in establishing a new solar cell and module manufacturing facility with a capacity of 3,000 MW, a venture that aligns with India's wider renewable energy targets.
- In addition to the new manufacturing facility, Vikram Solar plans to utilize approximately Rs 600 crore to upgrade its existing manufacturing facility, increasing its solar module capacity from 3,000 MW to a tremendous 6,000 MW.
- With an eye on the Decentralized Finance (Defi) market, a part of the funds raised could potentially be used to explore and invest in emerging technologies like Defi and cryptocurrency exchanges for further diversification in finance and business ventures.
%20approval%20for%20Initial%20Public%20Offering%20(IPO)){kind=link}