Rays Power Infra Files DRHP for IPO to Fuel Solar Expansion

2 Jan 2024 , 12:03 PM

Mumbai-based Rays Power Infra Ltd, a prominent player in India’s integrated solar power sector with a track record of implementing 1,207 MWp solar projects, has taken a significant step toward going public. The company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to initiate an Initial Public Offering (IPO).

The IPO, having a face value of Rs 10, comprises a fresh issue of equity shares, aiming to raise up to Rs 300 crore. Additionally, an Offer for Sale (OFS) of up to 2.99 million shares by Promoter Selling Shareholders will be part of the offering. Key contributors to the OFS include Ketan Mehta, Pawan Kumar Sharma, and Sanjay Garudapally.

The Offer adopts a Book Building Process, making a portion available for allocation to Qualified Institutional Buyers, Non-Institutional Bidders, and Retail Individual Bidders. The company, in collaboration with book running lead managers, may consider a Pre-IPO Placement, involving a further offer of equity shares, private placement, or secondary sale by promoter selling shareholders, potentially reducing the fresh issue size.

The anticipated net proceeds, around Rs 210 crore from the fresh issue, will be directed towards funding incremental working capital requirements and general corporate purposes.

Established in 2011, Rays Power Infra has played a pivotal role in the solar park sector, evolving into a reputable provider of comprehensive solar engineering, procurement, and construction (EPC) services. Leveraging its understanding of state regulations and effective collaborations with state land authorities, the company has secured over 5,700 acres of land for clients across India.

The company’s operations extend beyond solar power services, encompassing EPC services for infrastructure sectors like water, transmission, distribution, and smart metering. It also provides operations and maintenance (O&M) services for its Turnkey Solar Services and Solar EPC Business.

Rays Power Infra has successfully developed and activated 828.86 MWp of solar power projects in India, with ongoing projects totaling 198.50 MWp. Its order book as of October 31, 2023, stands at ₹1,842.01 crore, reflecting the robust demand for its services.

In Fiscal 2022–23, the company reported a substantial increase in revenue from operations, reaching Rs 776.58 crore compared to Rs 544.42 crore in the previous fiscal year. The profit after tax also witnessed a noteworthy surge, rising to Rs 131.04 crore for Fiscal 2023.

Anand Rathi Advisors Limited and Unistone Capital Private Limited are serving as the sole book-running lead managers for the IPO, with Bigshare Services Private Limited acting as the registrar. The equity shares are proposed to be listed on both the BSE and NSE.