March 24 (Renewables Now) - Indian photovoltaic (PV) module maker Vikram Solar Ltd has filed draft papers as part of a plan to go public via an initial public offering (IPO) in its home country.

A draft red herring prospectus for the transaction has been submitted with the Securities Exchange Board of India (SEBI). Under the deal, Vikram Solar intends to launch a fresh issue of INR 15 billion (USD 196.9m/EUR 178.5m) worth of shares and sell up to five million equity shares by existing shareholders and promoters through an offer for sale (OFS).

According to local media reports, quoting bankers, the size of the IPO will likely stand at around INR 20 billion. Vikram Solar indicates in the prospectus it is considering a pre-IPO placement to raise some INR 3 billion.

The fresh capital is aimed at supporting the Indian manufacturer’s plan to install a 2-GW solar cell and module production plant in Tamil Nadu. The capacity will add to the two existing production sites of Vikram Solar, which have a combined capacity of 1.2 GW, in Tamil Nadu and West Bengal.

At present, Vikram Solar is India’s largest PV manufacturer in terms of production capacity. The Kolkota-based firm also offers engineering, procurement and construction (EPC) and operations and maintenance (O&M) services.

JM Financial and Kotak Mahindra Capital Co Ltd have been appointed lead managers to the proposed placement.

(INR 10 = USD 0.131/EUR 0.119)

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