Gensol Engineering Limited (Gensol), a company that provides engineering, procurement, and construction (EPC) and advisory services for solar projects in India, has filed a draft red herring prospectus as part of its planned initial public offering (IPO).

The company plans to offer up to 2.4 million equity shares of face value ₹10 ($0.14). Gensol is targeting to raise over ₹130 million ($1.88 million) from the IPO proceeds to fund its working capital requirements. The company also plans to raise funds to meet its financial needs for general corporate purposes such as brand building and strategic initiatives.

Gensol has developed about 188 MW of utility-scale and rooftop solar projects in India, according to the company filings. In addition to the EPC services, it also provides consulting services such as technical advisory and project reviews. The company claims to have provided its technical assistance to over 18 GW of solar projects. Gensol had a revenue of about ₹700 million ($10.1 million) for the financial year ending March 31, 2018, according to the company’s filing. The company’s income statement shows profits of around ₹50 million ($722,000) for the same period. The pre-offer promoters and promoter group shareholding in the company stand at around 96 percent (5,801,165 equity shares). The company is promoted by Anmol Singh Jaggi and Puneet Singh Jaggi.

Gensol’s clients include developers such as Azure Power, Adani, Avaada Energy, Oriano Clean Energy, and Mytrah Energy. The company plans to expand its operations in South East Asia, Middle East, and Africa. It also has an ongoing project in Egypt.

There are a handful of solar/renewable energy-focused companies such as Websol, Adani, Suzlon and Ujaas which are listed on the Indian Stock Exchanges. So far it has not been easy for a renewable energy company to go public in India or anywhere in the world due to volatility and market dependence on policy for growth. However, this is a relatively small IPO, and there are much larger EPC companies in India that have remained private.

In January 2018, Mercom reported on the news of the Indian government announcing the setting up of a $350 million (~₹22.4 billion) solar development fund to enable financing of solar projects in the country. At the event, MOUs were signed between banks and renewable energy developers including Gensol.

In August 2017, Gensol participated in the auctioning of a 67 MW solar energy tender issued by the Railway Energy Management Company.