New Delhi, June 27 -- Surat, Gujarat-based solar photovoltaic module maker Rayzon Solar Ltd has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise Rs 1,500 crore ($175 million) via an initial public offering.

The IPO comprises only a fresh issue of shares and existing shareholders don't intend to sell any stake, according to the draft red herring prospectus. Rayzon, which has an installed capacity of 6GW, may also raise up to Rs 300 crore in a pre-IPO round. In that case, it will reduce the IPO size accordingly.

VCCircle had first reported in December last year that Rayzon was looking to go public at a valuation in excess of Rs 10,000 crore. Back then, the company's chief financial officer Ankit Shah had denied VCCircle's report, calling it "incorrect and based on rumours only."

Of the Rs 1,500 crore which the company plans to raise, Rs 1,265 crore will be used to part-finance the setting up of a manufacturing facility of 3.5GW installed capacity by its subsidiary Rayzon Energy. This new facility will make solar cells using tunnel oxide passivised contact technology and will come on stream by 2026-27.

Rayzon was founded in 2017 by Chirag Nakrani and Hardik Kothya as a partnership firm and converted into a private limited company in 2022. At present, the company is owned 98.1% by the Nakrani and Kothiya families.

The firm started its business with a 40MW production facility, which expanded to 300MW by 2020. The company now has a 6GW facility and is looking to scale up.

Besides solar panels, the company makes solar cells and is also into aluminum processing. It is adding an additional module manufacturing capacity of 2 GW at its Sava facility, which is likely to become operational by October this year. It is also establishing an aluminium extrusion and anodizing manufacturing unit in Sava in Mangrol, with a capacity of 19,800 MT per annum to make aluminium frames via its other subsidiary, Rayzon Industries, which is expected to come on stream next month.

Rayzon joins a host of other solar and wind energy companies as well as manufacturers that have either gone public or are looking to hit the capital markets.

It competes directly with recently listed manufactures like Waaree Energies and Premier Energies. Others that have also gone public in recent times include NTPC Green Energy and ACME Solar.

VCCircle also recently reported that Tata Power was considering listing its green energy arm, Tata Power Renewable Energy Ltd, which is backed by marquee foreign investors like Mubadala and BlackRock. Apart from these, Canada Pension Plan Investment Board-backed Renew Power, Macquarie's Blueleaf-backed Jakson Green, Juniper Green Energy, Goldi Solar and Jupiter International are among the other prominent renewable energy companies in India that may be looking to go public.

Published by HT Digital Content Services with permission from VC Circle.