Kolkata-based solar module manufacturer Vikram Solar has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its Initial Public Offering (IPO).

The company filed the draft red herring prospectus for the IPO in October 2024.

The IPO will consist of a fresh issue of equity shares worth up to ₹15 billion (~$176.25 million) and an offer for sale (OFS) of up to 17.45 million equity shares by the promoter and promoter group selling shareholders. The face value of each equity share is ₹10 (~$0.11).

The proceeds from the fresh issue will be primarily utilized for capital expenditure through investment in Vikram Solar’s wholly owned subsidiary, VSL Green Power. Out of the total amount, ₹7.93 billion (~$92.42 million) will be deployed for partial funding of an integrated solar cell and module manufacturing facility.

This facility will have a capacity of 3 GW each for solar cells and modules. An additional ₹6.03 billion (~$70.85 million) from the IPO proceeds will be allocated for the expansion of the solar module manufacturing facility already established under phase I at the same site.

This expansion, designated as Phase II of the project, will double the existing module capacity from 3 GW to 6 GW. Both investments will be routed through VSL Green Power. The remaining funds will be used for general corporate purposes.

Vikram Solar has a total installed manufacturing capacity of 4.50 GW for solar modules. It plans to scale up its total manufacturing capacity to 10.50 GW by fiscal 2026 and to 15.50 GW by fiscal 2027. As part of a backward integration strategy, Vikram Solar is also setting up a 3 GW solar cell manufacturing facility in Tamil Nadu.

Earlier this year, Vikram Solar increased the manufacturing capacity of its Falta facility in West Bengal by 1 GW.