Solar installation company Solar91 Cleantech has filed a draft red herring prospectus (DRHP) to raise ₹1 billion (~$11.97 million) through an initial public offering (IPO).

The company is offering a fresh issue of 5.43 million equity shares with a face value of ₹10 (~$0.119) each. There is no offer of sale in this IPO.

A total of 304,800 equity shares at a face value of ₹10(~$0.119) will be reserved for market makers, and 51,31,200 equity shares at a face value of ₹10 (~$0.119) will comprise net issue to the public. The issue and net issue will constitute 26.50% and 25.01%, respectively.

The company plans to use the net proceeds from the IPO to invest in subsidiaries, meet working capital requirements, and for general corporate purposes.

It will also use the net proceeds secured for investment in subsidiaries to develop large-scale solar parks that cater specifically to the energy needs of commercial and industrial clients.

The company will use the funds secured under the working capital requirement to support its incremental business requirements, funding growth opportunities, and other strategic, business, and corporate purposes that require additional working capital.

The company provides EPC solar energy solutions to commercial and industrial customers to offset their power consumption through renewable energy sources. It builds, operates, and maintains grid-connected and off-grid solar power projects for its customers.

Solar91 is also moving towards the IPP model (Independent Power Producer), under which it will build a portfolio of solar projects.

In 2023 and 2024, the company secured bids for a total capacity of 157 MW to develop solar projects and sell power to the state’s power distribution company under PM Kusum (Component C2) program.

The company’s solar special purpose vehicles (SPV) are located in Rajasthan, and the off-taker for these projects is Rajasthan Urja Vikas and IT Services on behalf of Jodhpur Vidyut Vitran Nigam / Jaipur Vidyut Vitran Nigam / Ajmer Vidyut Vitran Nigam.

The projects commissioned in these SPVs are eligible for central financial assistance  after commissioning.

Solar91 has a current order book of around 157 MW under PM Kusum C2 in Rajasthan. In March 2023, the then Minister of Power R.K. Singh told Parliament that the PM Kusum program benefited over 200,000 farmers as of February 28, 2023. A solar capacity of 89.45 MW has been installed under Component-A of the program. Approximately 209,000 pumps have been reported as installed or solarized under Component-B and Component-C.