Solarworld Energy Raises INR 110 Crore in Pre-IPO Round

Solarworld Energy Solutions, a provider of solar energy solutions, has raised approximately INR 110 crore in a pre-IPO placement round.

This funding round saw participation from prominent investors, including ValueQuest Investment Advisors, and led to a reduction in the fresh issue component of the company's upcoming Initial Public Offering (IPO) from INR 550 crore to INR 440 crore.

In an announcement last week, the company revealed that it had allotted 31.24 lakh shares to investors at INR 352.05 per share, aggregating a total transaction value of INR 109.99 crore on November 21. Among the key investors who were allotted shares are ValueQuest Scale Fund, VQfastercap Fund, and other individual investors.

The company had initially filed its draft red herring prospectus (DRHP) with SEBI in September 2024, seeking to raise INR 600 crore through the IPO. This included a fresh issue of INR 550 crore and an offer-for-sale (OFS) of shares valued at INR 50 crore by the promoter, Pioneer Facor IT Infradevelopers.

As per the firm, proceeds from the fresh issue, estimated at INR 420 crore, will be used to invest in the company's subsidiary, Kartik Solarworld. This investment will help finance the establishment of a 1.2 GW Solar PV TopCon manufacturing facility in Pandhurana, Madhya Pradesh.

The remaining funds will be allocated for general corporate purposes.As of August 31, 2024, Solarworld Energy Solutions has successfully completed solar power projects with a total capacity of 253.67 MW AC/336.17 MW DC. Additionally, the company has ongoing projects with a cumulative capacity of 420 MW AC/592 MW DC. Solarworld specialises in providing comprehensive engineering, procurement, and construction (EPC) services for solar power projects, contributing significantly to India’s renewable energy landscape.

The company’s IPO is being managed by Nuvama Wealth Management Ltd and SBI Capital Markets Ltd. as the book-running lead managers. The IPO is expected to help Solarworld Energy Solutions further strengthen its market position and expand its operations, particularly in the manufacturing of advanced solar technologies like the TopCon modules.