4 days ago
Vikram Solar to hit market with ₹2,000-crore IPO
Solar PV module manufacturer Vikram Solar Ltd. has announced to tap the capital market to raise ₹2,000 crore via an Initial Public Offering (IPO). The IPO to open on August 19. is a mix of fresh issue of shares up to Rs. 1,500 crore and an offer for sale of up to 1,74,50,882 equity shares by the promoter and promoter group selling shareholders.
The price band has been set at ₹315 to ₹332 per equity share of face value ₹10 each. The IPO will close on August 21.
Out of the proceeds of the fresh issue, about Rs 770 crore will go for partial funding of capital expenditure through investment in the company's wholly owned subsidiary, VSL Green Power Private Ltd. for the Phase-I of the project, about Rs 595 crore for funding of capital expenditure through investment in the wholly owned Subsidiary, VSL Green Power Private Ltd for the Phase-II Project; and the rest will be for general Corporate Purposes.
In 2009 the company commenced its manufacturing operations in 2009 with an installed capacity of 12 MW and the current installed capacity is 4.50 GW.
It has two solar PV module manufacturing facilities located in West Bengal and in Tamil Nadu. A solar cell manufacturing facility with two units is under construction in Gangaikondan, Tamil Nadu.
The company's revenue from operations increased by 36.34% from ₹2,510.99 crore in FY24 to ₹3,423.45 crore in FY25 primarily due to an increase in the volume of module sales in the domestic market.
Profit after tax increased by 75.41% from ₹79.72 crore in FY25 to ₹139.83 crore in FY25.
Gyanesh Chaudhary, CMD, Vikram Solar Ltd said, 'By FY27 the company will have 17.5 GW of module capacity and 12 GW of cell manufacturing capacity. We are having huge demand from the domestic market.'
Asked to comment on the likely impact of the US tariff on the company he replied in negative saying 'we do not export anything to the US so there will be no impact.'
On US investigation into alleged dumping by Indian solar panel manufacturers he said the allegations were baseless as the entire Indian industry last year only exported only 2GW of panels to the US which was insignificant as compared to huge imports by that country from the entire world.
'The US has been investigating against many countries including India. It started with China and now even small countries like Laos are being investigated,' he said.
