Vikram Solar & Midwest Set for Big IPOs: Files DRHP with SEBI, Eyes Massive Expansion

Vikram Solar Limited, one of India’s top producers of solar photovoltaic modules based near Kolkata, has filed its draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO). The company, which began in 2009 with a capacity of 12 MW, has expanded its production to 3.50 GW as of July 2024, according to a CRISIL report. Vikram Solar is listed in the Ministry of New and Renewable Energy’s Approved List of Module Manufacturers (ALMM), with 2.43 GW of capacity.

The IPO will consist of fresh shares worth ₹1,500 crore and the sale of up to 17.45 million shares by the promoter group. The face value of each share is ₹10, and employees are eligible for a discount when participating in the subscription segment. The company may also consider a “pre-IPO placement” of securities worth up to ₹300 crore.

ADVERTISEMENT

Be part of our community by downloading and registering on the Angel One app. Your support helps us keep delivering quality content.

The funds raised will be used for various projects, including ₹793.36 crore for expanding solar cell and module manufacturing through its subsidiary, VSL Green Power Private Ltd, and ₹602.95 crore to increase solar module production from 3,000 MW to 6,000 MW. The remaining amount will be used for general corporate expenses.

The lead managers for the IPO include Nuvama Wealth Management, with Link Intime India Private Ltd acting as the registrar.

Midwest IPO

Midwest Limited, based in Hyderabad, has also filed its DRHP with SEBI for its IPO. The company is involved in the mining, processing, and export of natural stones. Between FY22 and FY24, Midwest extracted an average of 1.37 million cubic meters of granite each year, including waste and marketable granite. Over the past 40 years, Midwest has expanded into areas such as mineral sands, quartz extraction, and processing rare earth elements like titanium.

The Midwest IPO includes fresh shares worth ₹250 crore and an offer for sale of up to ₹400 crore by the company’s promoters. Employees will also get a discount if they participate in the reserved segment. The promoter selling shareholders include ₹360 crore by Kollareddy Rama Raghava Reddy and ₹40 crore by Guntaka Ravindra Reddy.

The company may issue securities worth ₹50 crore as part of a pre-IPO placement, reducing the size of the fresh issue accordingly. Midwest plans to use the funds raised for various projects, including ₹127.05 crore for capital expenditure by its subsidiary Midwest Neostone Private Ltd, ₹25.75 crore for purchasing electric dump trucks, ₹3.26 crore for integrating solar energy into certain mines, and ₹53.80 crore for repaying outstanding borrowings.

DAM Capital Advisors Ltd, Intensive Fiscal Services Private Ltd, and Motilal Oswal Investment Advisors Ltd are the lead managers for the Midwest IPO, with KFin Technologies Ltd acting as the registrar.