Indian Solar Panel Producers Aim to Raise ₹5,800 Crore

12 Mar 2024 , 02:15 PM

In order to increase production and help India reach its 2030 target of 500 gigawatts (GW) of non-fossil fuel energy capacity, at least three independent producers of solar modules intend to raise as much as ₹5,800 Crore this year.

Waaree Energies, a Mumbai-based company, submitted draft documents for an IPO in December in an effort to obtain ₹3,000 Crore for capital expenditures. Moneycontrol reported that Premier Energies, located in Hyderabad, and Vikram Solar, based in Kolkata, are two other manufacturers of solar modules that have started their fundraising campaigns.

According to the report, Premier Energies has chosen a foreign investment bank to assist in raising up to ₹2,000 Crore, most likely through an initial public offering (IPO). In negotiations, Vikram Solar hopes to raise between ₹600 Crore and ₹800 Crore from high net worth individuals and family offices in a pre-IPO transaction.

A source stated, “A few smaller manufacturers with manufacturing capacities of less than 1 GW have also held talks with investment banks to gauge the possibility of raising capital through IPOs.”

Strong tailwinds for domestic solar module manufacturers are being provided, according to the source, by high domestic demand, government support for local production through productivity-linked incentive (PLI) schemes, and duties on low-cost imports from nations like China.

According to a study by rating agency Crisil, Premier Energies expanded its operating capacity to 2.7 GW of modules and 2 GW of solar cells as of December 31 from 1.05 GW of module capacity and 0.75 GW of cell capacity a year earlier. Premier is aiming to increase its capacity to 3 GW of cells and 3.7 GW of module capacity by FY25, according to the article.

The installed solar module capacity of Vikram Solar is 3.5 GW. The establishment of 2.4 GW of cell and module capacity under the PLI programme was approved by the government last year.

With a total investment of ₹14,007 Crore under the PLI plan in 2023, the central government gave 11 businesses a combined capacity of 39,600 megawatts (MW) of domestic solar PV module manufacturing capacity in an effort to lessen India’s reliance on imported solar components.

A 15,400 MW capacity was allotted under the programme for polysilicon, wafers, cells, and module baskets. Of this, Indosol received 6,000 MW, Reliance received 6,000 MW, and First Solar received 3,400 MW.

16,800 MW of production capacity was allotted under the wafers, cells, and modules basket. Waaree received 6,000 MW of this, Avaada received 3,000 MW, ReNew received 4,800 MW, JSW received 1,000 MW, and Grew received 2,000 MW.

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