Vikram Solar proposes Rs 2,000 crore public issue

Mumbai: Vikram Solar, one of the largest solar module manufacturers, is set to file with Securities and Exchange Board of India draft papers for an initial public offering, said bankers. The IPO size is likely to be about ₹2,000 crore, they said.

The proposed issue will be a mix of fresh share sales and stake sales by promoters. The company could issue shares worth ₹1,800 crore, according to bankers.

JM Financial and Kotak Mahindra Capital are the lead managers to the public issue.

The company did not respond to an ET query.

Vikram Solar is India's second-largest solar energy company by revenue. For the financial year ended March 31, 2021, the company posted a 4% growth in revenues to ₹1,577 crore. Its net profit jumped from ₹6.04 crore in FY20 to Rs37.14 crore in FY21.

The company has plants in West Bengal and Tamil Nadu with a total solar module manufacturing capacity of 2.5 gigawatts.

The government is pushing for higher production of clean and renewable energy as it looks to reduce the economy's dependence on coal and oil.

Finance minister Nirmala Sitharaman in her budget speech, earmarked an additional ₹19,500 crore to boost the government's production linked incentive (PLI) scheme for solar module manufacturers.