Satvik Green Energy Files Draft Papers To Raise Rs 1,150 Cr Via IPO

Solar panel maker Satvik 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 fresh issue of shares worth Rs 850 crore and an offer for sale (OFS) of Rs 300 crore by promoters, 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 will be be used to pay debt, investment in its subsidiary Saatvik Solar Industries, in the form of debt or equity for payment of borrowings, for setting up of a 4 GW solar PV module manufacturing facility in Odisha, and for general corporate purposes. Satvik 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, which include ground-mounted solar installations and rooftop solar installations. According to a Crisil report cited in the draft papers, renewable energy installations (including large hydro) have increased to about 191 GW as of March 2024 as compared to 63 GW as of March 2012, with solar power accounting for a share of 43 per cent as of March 2024.

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

(PTI)