Vikram Solar, the city-based solar photovoltaic modules maker, has received capital market regulator Sebi’s approval to raise funds through the company’s initial public offer.
Sebi’s observation letter was issued on May 29, 2025, according to the issue processing status. In the context of an IPO, a Sebi observation letter essentially means that the regulator has reviewed and approved the company’s draft offer document.
The IPO, with a face value of ₹10 per equity share, comprises a fresh issue of shares up to ₹1,500 crore and an offer for sale of up to 17.45 million equity shares by the promoter and its selling shareholders.
The company intends to utilise the net proceeds from the fresh issuance to the extent of ₹793.36 crore for partial funding of capital expenditure through investment in its wholly owned subsidiary, VSL Green Power Private Limited, for setting up of an integrated 3,000 MW (megawatt) solar cell and a 3,000 MW solar module manufacturing facility SIPCOT Industrial Complex in Tamil Nadu in phase 1.
A further ₹602.95 crore will be used to fund the expansion of the solar module manufacturing facility set up under phase 1 at the same site, from 3,000 MW to 6,000 MW in the second phase and also for general corporate purposes.
Vikram Solar has an installed manufacturing capacity of 4.5 GW (gigawatt) of solar PV modules with facilities at Falta SEZ in Calcutta, and Oragadam in Chennai. The company plans to increase its installed manufacturing capacity to up to 10.50 GW by fiscal year 2026 and up to 15.50 GW by fiscal year 2027. The company is also backward integrating into the solar value chain by establishing a 3.00 GW solar cell manufacturing facility in Tamil Nadu.
Vikram Solar’s revenue from operations grew by 21.11 per cent from ₹2,073.23 crore in 2022-23 to ₹2,510.99 crore in 2023-24, driven by increased domestic and export volumes. Earnings before interest, taxes, depreciation and amortisation was ₹398.58 crore as of March 31, 2024 compared with ₹186.18 crore as of March 31, 2023.