Solar engineering, procurement, and construction company Prozeal Green Energy has filed its draft red herring prospectus (DRHP) for its ₹7 billion (~$81.81 million) initial public offering (IPO) with the market regulator, the Securities and Exchange Board of India (SEBI).

The offer comprises a fresh issue of shares with a face value of ₹2 (~$0.023) each, aggregating up to ₹3.5 billion (~$40.91 million), and an offer for sale of shares with the same face value, also aggregating up to ₹3.5 billion (~$40.91 million).

The offer for sale consists of the following:

• Up to ₹1.69 billion (~$19.75 million) by Shobit Baijnath Rai
• Up to ₹1.69 billion (~$19.75 million) by Manan Hitendrakumar Thakkar
• Up to ₹30 million (~$350,633) by AAR EM Ventures
• Up to ₹20 million (~$233,755) by Bhaveshkumar Bachubhai Mehta
• Up to ₹60 million (~$701,266) by Jaya Chandrakant Gogri
• Up to ₹20 million (~$233,755) by Manoj Mulji Chheda

Prozeal Green Energy plans to utilize the net proceeds from the IPO for long-term working capital expenditure, investments in subsidiaries for debt repayment or prepayment (either in part or full), and general corporate purposes.

Nuvama Wealth Management and SBI Capital Markets are the book-running lead managers for the issue.

As of September 30, 2024, Prozeal Green Energy’s order book stood at ₹22.21 billion (~$259.58 million), with ₹22.09 billion (~$258.18 million) or 99.48% allocated to ground-mounted solar projects.

The company’s revenue from operations increased from ₹2.87 billion (~$33.54 million) in 2022 to ₹9.49 billion (~$110.92 million) in 2024, reflecting a compound annual growth rate (CAGR) of 81.77%. For the half-year ended September 30, 2024, revenue from operations reached ₹4.69 billion (~$54.81 million).

Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew from ₹115.44 million (~$1.35 million) in 2022 to ₹1.25 billion (~$14.61 million) in 2024, reflecting a CAGR of 228.71%. EBITDA for the half-year ended September 30, 2024, stood at ₹687.13 million (~$8.03 million).

Additionally, profit for the year increased from ₹100.71 million (~$1.17 million) in 2022 to ₹922.44 million (~$10.78 million) in 2024, representing a CAGR of 202.64%. Profit for the half year ended September 30, 2024, was ₹515.95 million (~$6.03 million).

In December last year, Noida-based rooftop solar solutions and products company Fujiyama Power Systems, Maharashtra-based agri-solar solutions provider GK Energy, and green power producer Continuum Green Energy filed DRHPs for their proposed IPOs.