Saatvik Green Energy Files DRHP with SEBI for ₹1,150 Crore IPO

Saatvik Green Energy, a prominent solar module manufacturer in India, has filed a draft red herring prospectus (DRHP) with SEBI for its upcoming initial public offering (IPO). The IPO aims to raise ₹1,150 crore, which includes a fresh issue of ₹850 crore and an offer for sale (OFS) of ₹300 crore by its promoters. 

Here's a breakdown of key details:

IPO Details:

The IPO comprises of fresh issue of ₹850 crore, primarily to fund the company's growth. There is also an Offer for Sale by promoters. Pramod Kumar and Sunila Garg are selling shares worth ₹300 crore.

Use of Proceeds:

The proceeds from fresh issue will be used in the following ways:

• ₹553 Cr will be used to establish a 4 GW solar PV module facility in Odisha.
• ₹96 Cr will be used for debt repayment through its subsidiary Saatvik Solar Industries
• ₹12.3 Cr will be used for additional debt reduction and general corporate purposes​.

Financial Performance:

Profit in FY24 surged by 2017% to ₹100.47 crore, compared to ₹4.74 crore in FY23. Revenue grew by 78.76% to ₹1,087.96 crore​ in the same period. 

In the Q1 FY25 results as well Profit stood at ₹21.24 crore with revenue of ₹245.97 crore​.

Book running lead managers

The IPO is being managed by DAM Capital Advisors, Ambit Private Limited, and Motilal Oswal Investment Advisors. More details about pricing and subscription timelines will emerge as the process progresses.

Company profile:

Saatvik Green Energy, also known as Saatvik Solar, is a prominent Indian manufacturer specializing in high-quality solar photovoltaic (PV) modules. Established in 2016, the company has rapidly expanded its production capabilities and market presence. Saatvik is identified as one of the fastest-growing solar module manufacturers in India​.

Manufacturing Capacity and Products

As of June 30, 2024, Saatvik Green Energy operates with an annual production capacity of approximately 1.8 gigawatts (GW) at its state-of-the-art facility in Ambala, Haryana. The company offers a diverse range of solar modules, including MonoPERC Monofacial, MonoPERC Bifacial, and N-TOPCon Bifacial modules. These products are designed to cater to various applications, from residential and commercial installations to large-scale utility projects.

Expansion Plans

To meet the growing demand for solar energy solutions, Saatvik Green Energy has announced plans to establish a 4 GW solar PV module manufacturing facility in Odisha. This expansion is part of the company's strategy to enhance its production capacity and strengthen its position in the renewable energy sector.