Saatvik Green Energy files draft papers with Sebi for Rs 1,150 cr IPO

Solar panel maker Saatvik Green Energy has filed preliminary papers with capital markets regulator Sebi to raise Rs 1,150 crore through an initial public offering (IPO).

The Haryana-based company's proposed IPO is a combination of a fresh issue of shares worth Rs 850 crore and an offer for sale (OFS) of Rs 300 crore by promoters -- Parmod Kumar and Sunila Garg, according to the draft red herring prospectus (DRHP) filed on Monday.

At present, promoters hold over 90 per cent stake in the company.

Proceeds from the fresh issue to the tune of Rs 553 crore will be used for setting up a 4 GW solar PV module manufacturing facility in Odisha, Rs 96 crore for investment in its subsidiary Saatvik Solar Industries in the form of debt or equity for payment of borrowings, Rs 12.3 crore will be used to pay the company's debt and a portion will be used for general corporate purposes.

As of June 2024, the company's total borrowing stood at Rs 256 crore.

Saatvik Green Energy is a solar photovoltaic module manufacturer with an operational capacity of about 1.8 GW as of June 30, 2024. The company provides end-to-end engineering, procurement and construction services for solar projects, including ground-mounted solar installations and rooftop solar installations.

Renewable energy installations (including large hydro) have increased to about 191 GW as of March 2024 compared to 63 GW as of March 2012, with solar power accounting for a share of 43 per cent as of March 2024, the draft papers said, citing  a Crisil report.

In FY24, solar capacity additions stood at 15 GW, with 3 GW from grid-connected rooftop solar projects. India has the potential to support 750 GW of solar energy installations and has been offering several incentives and schemes to encourage the development of solar power plants, it added.

On the financial front, Saatvik Green Energy posted a consolidated profit of Rs 21.24 crore in the three months ended June 2024 against Rs 14 crore in the year-ago period. Its revenues from operations rose to Rs 246 crore in the second quarter of the current financial year (FY25) from Rs 233.5 crore in the year-ago period.

Dam Capital Advisors, Ambit, and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.