Kolkata-based solar module manufacturer Vikram Solar has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise funds of up to ₹15 billion (~$178.9 million) through an initial public offering (IPO).

The IPO also has an offer for sale (OFS) of up to 17.45 million equity shares by the promoter group.

With a face value of ₹10 (~$0.12) per share, the IPO will offer a reservation for eligible employees and a discount for those participating in the employee subscription segment. The company also considers issuing securities worth up to ₹3 billion ($35.7 million) as part of a “pre-IPO placement” in consultation with the book-running lead manager.

The offering will follow a book-building process, with up to 50% of shares allocated to qualified institutional buyers, a minimum of 15% for non-institutional bidders, and at least 35% for retail investors.

Vikram Solar plans to utilize the net proceeds from the fresh issuance for several key investments, including ₹7.93 billion (~$94.6 million) for capital expenditure through its wholly owned subsidiary, VSL Green Power, to establish a 3,000 MW solar cell and module manufacturing facility.

Additionally, ₹6.03 billion (~$71.9 million) will be allocated to expand the company’s existing module manufacturing capacity from 3,000 MW to 6,000 MW, with the remaining funds used for general corporate purposes.

Nuvama Wealth Management will be the book-running lead manager for the IPO, and Link Intime India will serve as the registrar.

The company received a nod from the market regulator in August 2022 to raise funds through IPO.

Vikram Solar has a 3.5 GW module manufacturing capacity. The company said it plans to boost its production capacity to 10.5 GW by FY 2026 and 15.5 GW by FY 2027. This includes a 3 GW solar cell manufacturing facility in Tamil Nadu.

According to Mercom’s India Solar Market Leaderboard 1H 2023, Vikram Solar was among the top utility-scale solar engineering, procurement, and construction service providers in the first half of 2023.