Saatvik Green Energy Files Draft Papers To Mobilise Rs 1150 Crore via IPO

Saatvik Green Energy began its solar photovoltaic module manufacturing in 2016 and has increased its annual installed capacity from 125 MW in FY17 to approximately 1.8 GW in FY24. The company currently runs two module manufacturing facilities in Ambala, Haryana, and is working on adding a third facility with a capacity of 2.0 GW, which is anticipated to become operational in the fourth quarter of the current fiscal year. This will raise the total installed capacity at the Ambala plants to 3.8 GW.

Saatvik Green Energy draft for IPO

Saatvik Green Energy has submitted draft documents to the Securities and Exchange Board of India (SEBI) to secure Rs 1,150 crore through an Initial Public Offering (IPO). This IPO comprises a new issuance of equity shares amounting to Rs 850 crore, along with an offer-for-sale of shares valued at Rs 300 crore from current shareholders. Promoters Parmod Kumar and Sunila Garg will be offering shares worth Rs 150 crore as part of the sale.

Additionally, the company may seek to raise Rs 170 crore before filing the red herring prospectus with the Registrar of Companies, which would be considered a pre-IPO placement. If successful in this endeavour, the amount raised will be deducted from the fresh issuance. The promoters currently hold a 90.05% stake in the company, while the remaining 9.95% is owned by public shareholder Prashant Mathur.

Purpose of the IPO

From the newly raised funds, Saatvik Green Energy plans to allocate Rs 108.06 crore for debt repayment, while the rest will be used for general corporate needs. The investments will help boost its solar photovoltaic (PV) module manufacturing plant, facilitating growth in the renewable energy sector and increasing production capacity to satisfy the rising demand for clean energy solutions.

Revenue of Saatvik Green Energy

In FY24, EBITDA (earnings before interest, tax, depreciation, and amortization) experienced a tenfold increase, reaching Rs 147.6 crore; however, the margin declined notably by 1,080 basis points to 13.6 per cent compared to the prior fiscal year.

For the three months ending in June 2024, profit was recorded at Rs 21.2 crore, reflecting a 52% increase from Rs 14 crore in the corresponding period last year. During this same timeframe, EBITDA rose by 55.1% to Rs 32.5 crore, and the margin improved by 420 basis points to 13.2%. Additionally, revenue for the June quarter grew by 5.3% year-over-year to Rs 246 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.