Vikram Solar files for IPO to raise funds for 2GW cell and module manufacturing facility


Vikram Solar currently has 2.5GW of module manufacturing capacity. Image: Vikram Solar.

Vikram Solar has filed draft papers for its initial public offering (IPO) as it looks to raise funds for a 2GW integrated cell and module manufacturing plant in India.

Papers filed with the Securities Exchange Board of India reveal Vikram intends to launch a fresh issue of INR 15 billion (US$197 million) worth of shares and offer for sale up to 5 million shares by its existing shareholders and promoters. The company may also consider a pre-IPO placement to raise INR 3 billion.

Most of the proceeds will be used for funding capital expenditure for setting the 2GW facility in the Indian state of Tamil Nadu through its wholly owned subsidiary VSL Green Power.

In connection with that facility, Vikram revealed it has submitted a bid under India’s production-linked incentive (PLI) scheme to increase the integrated capacity of the plant from 2GW to a total of 3.6GW of modules and solar cells.  

The manufacturer already operates a 1.2GW module assembly facility in West Bengal – which it is planning to ramp up to 3GW  – as well as a 1.3GW solar module production facility in Tamil Nadu that was inaugurated last year.

The company said that if it is a successful bidder in the PLI scheme, then post-commissioning of the aforementioned facilities and expansions, its total annual rated capacity for module production would increase from 2.5GW to 7.9GW, of which 3.6GW would be integrated with cells.

In its fiscal year ending March 2021, Vikram posted revenues of INR 16.1 billion (US$211 million).

According to new research from consultancy JMK Research & Analytics, India’s nameplate module manufacturing is set to double from the current level of 18GW to 36GW in the next two years.

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