Solar panel manufacturer Vikram Solar has increased its production capacity ahead of its IPO. The company’s total production capacity has increased to 4.5 gigawatts after the addition of a 1-gigawatt production unit at its Falta facility in West Bengal. The company also made major upgrades in its Tamil Nadu plant.
We would like to inform our readers that the company has recently received approval from SEBI to launch its IPO, and the public offer may open for investors in the upcoming weeks.
A Significant Leap in Solar Manufacturing
Vikram Solar’s Falta and Oragadam factories had a total installed capacity of 3.5 GW before the expansion. The company’s latest addition of the 1GW unit will play a major role in the company’s expansion plan. This addition highlights Vikram Solar’s intent to aggressively expand the business as IPO is on the horizon this step also increases the investors’ faith in the company.
The Falta facility expansion commenced on 5 December 2024 and Oragadam Facility upgrade was started on 19 July 2024. This upgrade enables the plant to manufacture advanced TOPCon and HJT solar module technologies which further enhance the efficiency and product offering of Vikram Solar.
Vikram Solar IPO – Details
Vikram Solar’s IPO will be a mix of fresh issue of INR 1,500 crore and an offer for sale of 1,74,50,882 equity shares from selling shareholders. JM Financial, Nuvama Wealth Management, UBS Securities India, Equirus Capital India and PhillipCapital India are appointed as book-running lead managers for the issue. Link Intime India is the registrar of the issue.
Use of IPO Funds
The company plans to use the IPO funds in the following ways:
- Phase-I Project – INR 793.36 crore will be used to partially fund capital expenses.
- Phase-II Project – INR 602.95 crore will be allocated for capital expenses.
- General Corporate Purposes – The remaining amount will be used for general business needs (exact amount not specified).
Driving Sustainable Innovation
Gyanesh Chaudhary Chairman & Managing Director of Vikram Solar, expressed confidence in this expansion’s impact on the renewable energy sector.
“Vikram Solar’s Kolkata and Chennai manufacturing expansion will help us scale production and augment our capabilities to provide sustainable energy solutions. Both projects leverage advanced manufacturing techniques to enhance efficiency and ensure adherence to international quality and sustainability standards. They will enable us to supply high-quality manufacturing panels, further fulfilling the vision of Atmanirbhar Bharat.”
This expansion aids India’s Atmanirbhar Bharat ambitions to help the government reduce reliance on conventional sources of energy and help achieve a 500 GW renewable energy target by 2030.
Strategic Growth and Industry Recognition
In PVEL’s PV module reliability scorecard, Vikram Solar ranks as a top performer and also made a place in BloombergNEF’s Tier 1 solar PV module manufacturers. The company has a large distribution network in India which comprises 67 system integrators, 64 dealers and 41 company-authorized distributors.
Looking Ahead
With this latest expansion, Vikram Solar is gearing up to meet the rising demand for advanced solar technology while reinforcing its commitment to sustainability. The integration of new technology in both facilities enables the company to compete in the challenging solar PV industry.
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