Vikram Solar Planning IPO In India

• Vikram Solar has filed DRHP with India's SEBI to launch its IPO to fund capacity expansion
• It plans to use proceeds for its 2 GW solar cell and module fab in Tamil Nadu, which if it secures PLI will increase to 3.6 GW
• It also aims to upgrade its existing production lines to accommodate M10 and M12 cell technology lines

Indian solar PV module producer Vikram Solar plans to raise up to INR 15 billion ($196 million) to support its new 2 GW integrated cell and module fab in Tamil Nadu.  It has filed a Draft Red Herring Prospectus (DRHP) as a precursor to its initial public offering (IPO) with Indian market regulator Securities and Exchange Board of India (SEBI).

The company said it has submitted a bid under the Indian government's Production Linked Incentive (PLI) scheme to increase the integrated capacity of the new Tamil Nadu facility from 2 GW to 3.6 GW of solar cells and modules. The fab will be realized through its subsidiary VSL Green Power Private Limited.

It is also upgrading the company's existing manufacturing plant in Falta, West Bengal from 1.2 GW to 3 GW within fiscal year 2023. Proposed expansion on site will also see the capacity with M10 and M12 cell technology production due to which it may have to shut some production facilities resulting in lower production for a few months.

"If we are a successful bidder under the PLI scheme, then post commissioning of aforementioned facilities, our total annual rated capacity for module production is expected to increase from 2.5 GW to 7.9 GW, of which 3.6 GW of capacity would be integrated with solar cells," states the company in the draft papers.

Vikram Solar says its current annual rated production capacity of 2.5 GW is inclusive of trial production.

Another Indian module maker, Waaree Energies also filed its DRHP with SECI in 2021 to raise funds for 2 GW solar cell and 1 GW module fab in Gujarat, and secured approval to launch its INR 15 billion IPO.