NewsIPOIndosol Solar Eyes Rs 69,000 Crore Investment and IPO Following 1 GW Solar Line CommissionIndosol Solar Eyes Rs 69,000 Crore Investment and IPO Following 1 GW Solar Line Commission
Indosol Solar, a subsidiary of Shirdi Sai Electricals, is set to invest Rs 69,000 crore in a fully integrated solar PV manufacturing facility. The company has been awarded Rs 5,175 crore under the PLI scheme and aims to achieve 10 GW capacity by December 2026. With 8,348 acres allocated by the Andhra Pradesh government, Indosol Solar has secured Rs 12,000 crore in debt funding. The company plans to commission a 1 GW integrated line by the end of this financial year and is targeting an IPO in the next financial year, potentially diluting 25-26% stake.
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Indosol Solar: Expansion Plans and Potential IPO
Indosol Solar, a wholly owned subsidiary of Shirdi Sai Electricals, is gearing up for significant expansion in the solar manufacturing sector, with plans for substantial investment and a potential initial public offering (IPO) in the next financial year.
Expansion Plans and Investment
The company has ambitious plans to develop a fully integrated solar PV manufacturing facility, spanning from quartz to modules. Indosol Solar aims to invest Rs 69,000 crore over time to realize this vision. The Andhra Pradesh government has already allocated 8,348 acres for the manufacturing plant, signaling strong support for the project.
Production Linked Incentive and Capacity
Indosol Solar has been awarded Rs 5,175 crore under the Production Linked Incentive (PLI) scheme, boosting its manufacturing capabilities. The company's expansion is set to unfold in phases:
- Phase 1A requires an investment of Rs 2,400 crore
- Phase I, targeting 10 GW capacity by December 2026, needs Rs 25,000-28,000 crore
Current Operations and Future Plans
The company has already made significant strides in its manufacturing capabilities:
- Commissioned a 500 MW module line in March (currently halted due to power instability)
- Plans to commission a 1 GW integrated line by the end of this financial year
Financial Outlook
Indosol Solar has secured Rs 12,000 crore in debt funding to support its expansion plans. The company expects to generate revenue of Rs 600 crore this year.
It's worth noting that the parent company, Shirdi Sai Electricals, has seen some fluctuations in its revenue:
| Fiscal Year | Revenue (in crore) |
|---|---|
| FY24 | 3,400 |
| FY25 | 3,000 |
| FY26 | 6,500 |
IPO Plans
Following the commissioning of its 1 GW solar manufacturing line in Andhra Pradesh, Indosol Solar is planning an IPO in the next financial year. The initial public offering may involve diluting 25-26% stake, with Shirdi Sai Electricals retaining at least 51% ownership.
This strategic move, coupled with the substantial investment and expansion plans, positions Indosol Solar as a significant player in India's growing solar manufacturing sector.
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