Coimbatore-based solar energy company, Natrinai Green Energy, has received BSE’s approval for its draft red herring prospectus (DRHP) for an initial public offering (IPO) to raise ₹43.6 million (~$491,903) by issuing 4.36 million equity shares, with a face value of ₹10 (~$0.11)/share.

This includes a fresh issue size of 4.14 million equity shares, aggregating to ₹41.4 million (~$467,061) and an offer for sale size of 220,200 equity shares aggregating to ₹2.2 million (~$24,842).

It plans to use ₹324.84 million (~$3.6 million) of the net proceeds from the share issue to set up a 7 MW grid-connected solar project at Tamil Nadu’s Poomalaikundu and Veppampatti villages.

The company said its funding incremental working capital requirement is ₹680.02 million (~$7.67 million).

The IPO will be listed on BSE’s SME platform.

Kreo Capital is the book running manager for the IPO, with Cameo Corporate Services acting as the registrar to the offer.

Natrinai’s range of services includes providing engineering, procurement, and construction services, developing and owning its own solar projects, and providing operating and maintenance services.

The company has installed solar projects of over 150 MW capacity. It has three pooling substations and has an ongoing capacity of over 180 MW.

A raft of other IPOs by clean energy companies is in the pipeline this year. Prominent among them is Emmvee Photovoltaic Power’s ₹30 billion (~$352 million) public issue, which received approval from SEBI in July. Earlier this month, Prozeal Green Energy’s ₹7 billion (~$79 million) public issue proposal also won SEBI’s nod.

According to Raj Prabhu, CEO of Mercom Capital, India saw 16 public issues by clean energy firms in the 12 months leading up to July this year, reflecting strong demand and an expression of confidence in India’s renewable energy story.  He, however, cautioned that the IPO route can also be risky in light of recent energy-related policy upheavals worldwide and trade disputes.