Solar energy solutions company Rays Power Infra has filed a draft red herring prospectus with the market regulator, Securities and Exchange Board of India, for an ₹11.5 billion (~$129.5 million) initial public offering (IPO) of shares.

The IPO will consist of a fresh issue of ₹9 billion (~$101.33 million) worth of shares, and an offer for sale (OFS) of ₹2.5 billion (~$28.14 million) by the company’s promoters and shareholders.

The net proceeds of the fresh issue will be used to fund the development of a 1.5 GW n-type TOPCon G12R solar cell manufacturing plant at Narmadapuram, Madhya Pradesh, by its subsidiary Rays Green Energy, as well as to meet incremental working capital needs and general corporate requirements.

In its draft papers, Rays Power stated that the majority of the cells it manufactures will be used for its own solar projects, and the balance, if any, will be sold to third parties.

Rays Power is also planning a pre-IPO placement of up to ₹18 billion (~$20.26 million).

Last July, the company raised ₹1.27 billion (~$15.17 million) in equity capital from a clutch of high-net-worth individuals, family offices, funds, and partners in alternative investment funds.

In April this year, the company was one of the winners in Assam Power Distribution Company’s engineering, procurement, and construction auction to set up 250 MW of solar power projects in Karbi Anglong, Assam. Rays Power won a capacity of 125 MW.

In 2022, Rays sold its solar projects in Tamil Nadu, Karnataka, and Telangana to two global investors with a significant presence in India for an aggregate enterprise value of over ₹7 billion (~$90.55 million).

The clean energy sector in India is seeing a rush of companies accessing the capital markets by floating IPOs since 2024 to fund their new projects and expansion plans. Several public issues by renewable energy firms are in the pipeline this year. Companies testing their luck include solar manufacturers, independent power producers, and developers.