Noida-based rooftop solar solutions and products company Fujiyama Power Systems (UTL Solar) has filed the draft red herring prospectus (DRHP) in preparation for an Initial Public Offering (IPO).

The IPO, with a face value of ₹1 (~$0.012) per share, comprises a fresh issue of shares worth up to ₹7 billion (~$81.77 million) and an offer-for-sale of up to 20 million shares.

The company aims to use the proceeds from the fresh issue amounting to ₹2.5 billion (~$29.20 million) to establish a manufacturing facility in Ratlam, Madhya Pradesh, ₹3 billion (~$35.05 million) to repay outstanding borrowings, and the rest for general corporate purposes.

In consultation with the book-running lead managers, the company may raise up to ₹1.4 billion (~$16.35 million) through a pre-IPO placement, which, if completed, will reduce the size of the fresh issue.

The book-running lead managers will be Motilal Oswal Investment Advisors and SBI Capital Markets, and Link Intime India will be the registrar.

The provides rooftop solar solutions and also manufactures solar modules, inverters, and lithium-ion (Li-ion) batteries. In the electric vehicles (EV) segment, the company provides chargers for electric rickshaws and lithium-ion batteries.

Fujiyama operates three manufacturing facilities. In the Greater Noida facility in Uttar Pradesh the company produces solar modules (439 MW), inverters and electronics (1,143 MW), e-rickshaw chargers and L-ion batteries (45 MWh). The Parwanoo facility in Himachal Pradesh produces solar power conditioning units and uninterruptible power supplies (UPS), and in Bawal in Haryana, tubular batteries (1,318 MWh).

In its bourse filing, the company disclosed it is expanding its production capacity with a new 600 MW solar module manufacturing facility in Dadri, Uttar Pradesh. It is also adding additional manufacturing capacities of solar modules by 600 MW, solar inverters by 600 MW and Li-ion batteries by 500 MWh at its Greater Noida facility.

To meet the growing demand in the western and southern regions, the company plans to establish an integrating facility in Ratlam, Madhya Pradesh. The new facility is planned to produce 2,000 MWh of Li-ion batteries and 2,000 MW each of solar inverters and modules.

Under the Madhya Pradesh Industrial Promotion Policy, 2014 the company plans to apply for 40% subsidy of up to ₹1.5 billion (~$17.52 million) on capital expenditure.

The company has a distribution network across India with more than 480 distributors, 3,600 dealers and 1,000 exclusive franchisees.

Recently, Maharashtra-based agri-solar solutions provider GK Energy filed a DRHP to raise over ₹5.01 billion (~$60.02 million) through an IPO. The IPO comprised a fresh issue of equity shares with a face value of ₹2 (~$0.023) each, aggregating up to ₹5 billion (~$58.84 million), and an offer for sale of equity shares with a face value of ₹2 (~$0.023) each, aggregating up to ₹16.8 million (~$197,714).