Upcoming IPO: Saatvik Green Energy files DRHP with market regulator SEBI for ₹1,150 crore offer

Upcoming IPO: Saatvik Green Energy has filed a draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). According to the DRHP documents, filed on Monday, November 18, Saatvik Green Energy is looking to raise up to ₹1,150 crore via a mix of a fresh issue and an offer for sale (OFS) by the promoters.

The IPO consists of a fresh issue of equity shares with a face value of ₹2 each, aggregating to ₹850 crore. Meanwhile, the OFS size will be around ₹300 crore. Pramod Kumar and Sunila Garg, the promoters of the company, will be offloading their stake via the OFS.

Out of the fresh proceeds that Saatvik Green Energy intends to raise, it plans to use ₹12.3 crore for the prepayment or scheduled repayment, in full or in part, of certain outstanding borrowings; ₹95.75 crore for investment in its wholly-owned subsidiary, Saatvik Solar Industries Private Limited, to repay or prepay certain outstanding borrowings; and ₹552.7 crore for setting up a 4 GW solar PV module manufacturing facility in Odisha.

Saatvik Green Energy Financials

The company has posted strong growth in both its bottom line and top line for the financial year ending March 2024. Its profit surged a whopping 2,017 per cent to ₹100.47 crore as of March 31, 2024, up from ₹4.74 crore as of March 31, 2023.

Its revenue from operations also witnessed robust growth of 78.76 per cent year-on-year for FY24, reaching ₹1,087.96 crore compared with ₹608.58 crore in FY23.

For the three months ended June 2024, its profit stood at ₹21.24 crore, and revenue was ₹245.97 crore.

About Saatvik Green Energy

Saatvik Green Energy is a leading solar module manufacturer with an operational capacity of about 1.8 gigawatts (GW). According to a CRISIL report, the company is one of the fastest-growing module manufacturing companies in India and one of the few integrated players with capabilities in both module manufacturing and engineering, procurement, and construction (EPC).

The company commenced manufacturing operations in 2016 and has expanded its annual installed capacity from 125 MW in fiscal year 2017 to approximately 1.8 GW in fiscal year 2024.

It currently operates two module manufacturing facilities in Ambala, Haryana, spread across a total land area of 724,225 square feet.

DAM Capital Advisors Limited, Ambit Private Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers, while KFin Technologies is the registrar of the issue.