Vikram Solar gets SEBI approval for Rs 15 billion IPO

Vikram Solar Limited has received approval from the SEBI to launch its initial public offering (IPO) amounting to Rs 15 billion. The proposed IPO comprises a fresh issue of equity shares worth Rs 15 billion and an offer-for-sale of up to 17.45 million equity shares by the promoter and promoter group selling shareholders. As per the draft red herring prospectus (DRHP), Rs 7.93 billion from the net proceeds will be invested in its wholly owned subsidiary, VSL Green Power Private Limited, for partial funding of a new 3,000 MW solar cell and 3,000 MW solar module manufacturing facility. An additional Rs 6.03 billion will be used to expand the existing solar module manufacturing capacity from 3,000 MW to 6,000 MW under Phase I, also through VSL Green Power. The remaining proceeds will be utilised for general corporate purposes.