Saatvik Solar has filed its DRHP with SEBI to raise INR 11.5 billion through an IPO
It will mainly be deployed for the implementation of a 4 GW solar module factory in Odisha
The remaining proceeds will be used for prepayment or repayment of loans
Solar PV module manufacturer Saatvik Solar has joined the list of solar companies in India intending to raise money via the initial public offering (IPO) route. The largest chunk of its intended raise of INR 11.5 billion ($136.26 million) will support the addition of 4 GW module production capacity in Odisha, according to its Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI).
The remaining amount of INR 957.51 million ($11.34 million) will go to Saatvik Solar to repay its outstanding borrowings and INR 123.12 million ($1.45 million) for the prepayment or repayment of certain borrowings by the company.
Saatvik is offering a fresh issue of shares worth INR 8.5 billion ($101 million), and an offer for sale of up to INR 3 billion ($35.55 million), with a face value of INR 2 ($0.024)/share.
The proposed 4 GW solar PV module production factory at National Highway-16, Chamakhandi, Gopalpur Industrial Park in Ganjam district of Odisha will get INR 5.53 billion of the total proceeds. It will be established by the company’s subsidiary Saatvik Solar Industries.
It plans to implement TOPCon technology for the proposed 4 GW factory that will produce modules with a maximum efficiency of 22.84% using single-junction solar cells.
“Through the Project Site, we intend to achieve the proposed backward integration and manufacture high quality solar cells in a cost-effective manner. By establishing a 4.0 GW solar module manufacturing capacity across our proposed manufacturing facility in Odisha, we are positioning ourselves as a fully integrated player in the solar energy and EPC value chain,” stated the management in its DRHP.
Speaking with TaiyangNews at REI 2024, Saatvik Solar CEO Prashant Mathur had revealed plans to enter solar cell manufacturing with a 3 GW greenfield cell fabrication unit in Odisha (see Saatvik Solar's 'Made-In-India' Product Offerings At REI 2024).
The company’s current operational annual production capacity is about 1.8 GW of mono PERC and n-type TOPCon modules. It also provides EPC services for both ground-mounted and rooftop solar applications, along with operation and maintenance (O&M) services for the projects it constructs.
Saatvik’s IPO plans follow other solar PV manufacturers like Waaree Energies, Premier Energies, Alpex Solar, Vikram Solar, PMEA Solar, and solar energy generators ACME Solar Holdings, NTPC Green Energy Limited (NGEL), among others. Many more are to follow suit as several companies, mostly module manufacturers, shared such plans with TaiyangNews at REI 2024.
Independent power producer (IPP) ACME Solar Holdings made its debut on the National Stock Exchange on November 13, 2024 at a discount of 13.15% at INR 251 ($2.97)/share as against the IPO price of INR 289 ($3.43)/share; however, it was oversubscribed 2.75 times.
Another recent IPO launch was from NTPC Green Energy Limited (NGEL), the green energy arm of state-owned utility NTPC Limited. On day 1 of the issue, it was subscribed 33%, mainly by anchor investors including Goldman Sachs, the Government of Singapore, and Life Insurance Corporation of India (LIC), among others, according to local media reports. NGEL aims to raise INR 100 billion (see Price Band Set For NTPC Green’s INR 100 Billion IPO).