Vikram Solar Limited , a leading solar module manufacturer, has announced that its promoters have pledged a significant portion of their shareholding to secure working capital financing for the company. The move comes shortly after the company's successful initial public offering (IPO) and listing on the stock exchanges.

Pledge Details

According to a disclosure made to the stock exchanges, two promoter entities of Vikram Solar - Gyanesh Chaudhary Family Trust and Vikram Capital Management Private Limited - have pledged 9,49,60,893 equity shares, representing approximately 26.25% of the company's post-IPO paid-up share capital. The shares were pledged in favor of IndBank Merchant Banking Services Limited, acting on behalf of a consortium of working capital lenders.

Working Capital Facility

The pledge is part of a working capital facility agreement for a total amount of Rs. 2,600.00 crore. This facility involves a consortium of 14 banks, including Indian Bank as the lead bank, along with other major financial institutions such as Punjab National Bank, State Bank of India, HDFC Bank, ICICI Bank, and Axis Bank.

Pre-IPO Arrangement and Re-pledge

This pledge is actually a re-pledge of shares that were previously released to facilitate the company's IPO process. Prior to the IPO, IndBank Merchant Banking Services had released these shares to enable the promoters to comply with the lock-in requirements prescribed by SEBI regulations for the IPO.

Company's Growth Plans

Vikram Solar has been expanding its manufacturing capabilities and is currently in the process of increasing its module production capacity from 4.5 GW to 17.5 GW by fiscal year 2027. Additionally, the company plans to enter solar cell manufacturing with a proposed 12 GW capacity, also slated for completion by FY27.

Financial Performance

In its recent financial results for Q1, Vikram Solar reported a robust performance with revenue rising by 79.7% year-on-year to Rs. 1,134.00 crore. The company's operating EBITDA more than doubled to Rs. 242.00 crore, while PAT showed a significant increase from Rs. 22.80 crore to Rs. 133.00 crore.

Market Position

With a current order book of 10.96 GW and a project pipeline of over 38 GW, Vikram Solar appears well-positioned to capitalize on the growing demand for solar modules in India and internationally. The company's focus on quality and innovation, coupled with its expansion plans, aligns well with India's ambitious renewable energy targets and the global shift towards sustainable energy solutions.

This latest move by the promoters to pledge a substantial portion of their holdings underscores their commitment to the company's growth plans and their confidence in Vikram Solar's future prospects in the rapidly evolving solar energy sector.

Vikram Solar , a leading solar module manufacturer, has reported stellar financial results for the first quarter, showcasing robust growth and ambitious expansion plans.

Strong Financial Performance

The company delivered impressive quarterly results, with revenue surging 79.7% year-on-year to ₹1,134.00 crores. Profit after tax (PAT) saw a remarkable increase, jumping approximately 5 times from ₹22.80 crores to ₹133.00 crores in the current quarter. Operating EBITDA more than doubled to ₹242.00 crores, reflecting significant operational improvements.

Production and Capacity Utilization

Vikram Solar produced over 750 megawatts of modules during the quarter, achieving a capacity utilization of 67%. The company's CEO, K. K. Maskara, noted that they have improved capacity utilization compared to the previous quarter, with the full 4.5 gigawatt capacity now ramped up and N-type capable.

Robust Order Book

As of June 30, Vikram Solar's order book stands at an impressive 10.96 gigawatts. The company has secured several prestigious contracts, including:

• 250 megawatts from Bondada Group
• 336 megawatts from L&T
• 326 megawatts from GIPCL

These contract wins reflect strong market confidence in Vikram Solar's execution capabilities.

Ambitious Expansion Plans

Vikram Solar has unveiled ambitious plans for capacity expansion:

1. Module Manufacturing:

   • Current capacity: 4.5 gigawatts
   • Target capacity: 17.5 gigawatts (a 4x increase)

2. Solar Cell Manufacturing:

   • Planned capacity: 12 gigawatts

3. New Facility:

   • 5 gigawatt module manufacturing plant in Vallam, Tamil Nadu

4. Battery Energy Storage System (BESS):

   • Initial capacity: 1 gigawatt hour
   • Expandable to 5 gigawatt hour

The total capex for these expansion plans is estimated at over ₹6,000.00 crores.

Technology and Innovation

Vikram Solar is focusing on advanced technologies:

• Current production is based on TOPCon (Tunnel Oxide Passivated Contact) technology
• Average power output has increased from 585 watts to 590 watts per module
• The company is exploring next-generation technologies like Back-Contact and Tandem cells

Market Outlook and Strategy

The management expressed optimism about the growing solar energy market in India, citing the country's achievement of over 50% installed power capacity from non-fossil fuel sources. Vikram Solar is positioning itself to capitalize on various government initiatives, including:

• National Green Hydrogen Mission
• PM Kusum Scheme
• PM Surya Ghar Muft Bijli Yojana

These initiatives are expected to add about 200 gigawatts of demand over the coming years.

Funding and Financial Strategy

The company plans to fund its expansion through a combination of:

• IPO proceeds
• Debt from PSU and private banks
• Internal accruals

As Vikram Solar embarks on this significant growth phase, it aims to strengthen its position as a leading player in India's solar energy sector, contributing to the country's renewable energy goals and energy security.