Cosmic PV Power files DRHP with SEBI for ₹640 crore IPO

Cosmic PV Power, a Gujarat-based manufacturer of solar panels, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO). According to the documents filed on March 20, the company aims to raise a total of ₹640 crore through this public issue. The move comes as the company seeks to capitalize on the growing demand for renewable energy solutions in India.

IPO Structure and Offer Details

The proposed IPO consists of a fresh issue of equity shares worth ₹540 crore and an Offer-for-Sale (OFS) component of ₹100 crore. Under the OFS, existing promoters and investors, including Jenishkumar Deepakumar Ghel, Chanakya Opportunities Fund, RPV Holdings, and Shubhalaxmi Polyesters, will offload a portion of their holdings. Also, the company may consider a pre-IPO placement of up to ₹108 crore before filing the final prospectus with the Registrar of Companies.

Utilization of IPO Proceeds

As per the regulatory filing, the company intends to work with a significant portion of the net proceeds for expansion. 1 crore is earmarked for setting up a new manufacturing unit in Narmadapuram, Madhya Pradesh. The remaining funds will be allocated toward general corporate purposes and meeting working capital requirements. This strategic investment is expected to Notably bolster the company's production capabilities and market reach.

Business Operations and Capacity

Since commencing manufacturing operations in 2021 with an initial capacity of 100 MW, Cosmic PV Power has scaled its operations to an annual capacity of 3 GW. The company operates across three primary business verticals: Solar PV modules, EPC services, and Aluminum frames. Currently, it maintains two automated manufacturing plants in Surat, Gujarat, producing solar modules ranging from 420WP to 750WP, catering to diverse industrial and commercial needs.

Financial Performance and Growth

The company has reported solid financial growth over the recent periods. 5 crore in the previous year. 9 crore. 8 crore. It faces competition from listed peers such as Waaree Energies, Premier Energies, and Vikram Solar.

Lead Managers and Advisors

Systematix Corporate Services and Valmiki Leela Capital have been appointed as the book-running lead managers for the issue. They will oversee the regulatory compliance and marketing of the IPO, while the listing is expected to provide the company with a platform to enhance its brand image and provide liquidity to existing shareholders while securing capital for its long-term infrastructure projects in the solar energy sector.