Satvik Green Energy, the manufacturer of solar panels, has got the draft papers submitted to the market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise ₹1,150 crore. According to its draft red herring prospectus (DRHP), which was filed on Monday, the IPO has been divided into a fresh issue of shares amounting to ₹850 crore and an offer for sale of ₹300 crore by the promoters of the company.
Satvik Green Energy, Haryana-based, plans to use the funds raised through the fresh issue to decrease the debt burden and invest in the subsidiary Saatvik Solar Industries. Investments will be made to strengthen its manufacturing capacity by establishing a 4 GW solar photovoltaic module facility in Odisha. Proceeds will also be applied for general corporate purposes.
The company operates at a current capacity of 1.8 GW as of June 30, 2024, and offers full engineering, procurement, and construction services. These services for both ground-mounted solar plants and rooftop solar plants reflect its position in the renewable energy sector.
Promoters retain more than 90% stake in the company and will free up a portion of this via the IPO’s OFS component. The offering will be led by top financial advisors: Dam Capital Advisors, Ambit, and Motilal Oswal Investment Advisors, who will act as book-running lead managers.
India’s renewable energy sector is mushrooming at a fast pace. Satvik Green Energy filed an IPO. As cited in the DRHP, a report by Crisil said India’s renewable energy capacity, inclusive of large hydro projects, reached as high as 191 GW by March 2024, against 63 GW by March 2012. Solar energy stood for 43% of this capacity, which further emphasizes its role in the clean energy transition in the country. In FY24 alone, India was able to add 15 GW of solar capacity, of which 3 GW came from grid-connected rooftop projects.
The immense solar energy potential is estimated to be at 750 GW. To seize this opportunity, the government has further continued rolling out several incentives and policies to support the development of solar power infrastructure.
Satvik Green Energy’s planned Odisha facility fits this trend, doubling the company’s capacity to respond to strong solar installation demand. The IPO success might position the company as one of the better competitors in the renewable energy space and help in advancing India’s energy transition goals.
Source: PTI