PMEA Solar Tech Solutions Files for IPO: Mumbai’s Solar Giant Eyes Major Market Debut with SEBI Submission
Mumbai-based PMEA Solar Tech Solutions, a key player in the Indian solar tracking and mounting products market, has submitted its draft red herring prospectus (DRHP) to SEBI to raise funds through an IPO.
The IPO, with a face value of ₹10, will include a fresh equity issue of ₹600 crore and an offer for sale (OFS) of up to 11.23 million equity shares. Key shareholders, including Samir Pravin Sanghavi, Kapil Pravin Sanghavi, Vishal Navinchandra Sanghavi, and Sandeep Navinchandra Sanghavi, will be selling their shares through the OFS.
The company may also consider raising an additional ₹120 crore through a private placement or preferential offer. If this happens, the size of the fresh issue will be reduced.
The IPO will follow the book-building process, with 50% of shares reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors.
The proceeds from the fresh issue will be used for capital expenditure, including setting up new manufacturing facilities through its subsidiary PMSS, purchasing machinery, repaying debt, and general corporate needs. PMEA Solar focuses on making solar tracking and mounting systems, including solar trackers, mounting assemblies, and rolled products, which are essential for large-scale solar power plants.
As of March 2024, PMEA Solar had an annual capacity of 16 gigawatts (GW) for module mounting assembly and 6 GW for rolled products, according to a report by Frost & Sullivan (F&S). The company held a 9% market share in India’s solar tracking and mounting products segment.
The company’s revenue from operations grew by 87% year-on-year to ₹1,500 crore in FY24, driven by higher product sales and other operating income. Restated profit after tax (PAT) for FY24 also surged to ₹103.64 crore, more than tripling from the previous year.
IIFL Securities and ICICI Securities are the lead managers for the IPO, and Link Intime India will act as the registrar.
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