Saatvik Green Energy Announces Rs 900 Crore IPO with Price Band of Rs 442-465
Solar panel manufacturer Saatvik Green Energy is launching its IPO on September 19, aiming to raise Rs 900 crore. The price band is set at Rs 442-465 per share, valuing the company at Rs 5,910 crore at the upper end. The IPO includes a fresh issue of Rs 700 crore and an offer-for-sale of Rs 200 crore by promoters. The subscription period is from September 19-23, with an expected listing date of September 26. Funds will primarily be used to establish a 4 GW solar PV module manufacturing facility in Odisha and repay debts. The company currently operates with a 3.8 GW capacity and offers various solar energy services.
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Solar panel manufacturer Saatvik Green Energy is set to launch its initial public offering (IPO) on September 19, aiming to raise Rs 900 crore. The company has announced a price band of Rs 442-465 per share for the issue, which values Saatvik Green Energy at Rs 5,910.00 crore at the upper end of the price range.
IPO Details
- Subscription Period: September 19-23, 2023
- Anchor Bidding: September 18, 2023
- Price Band: Rs 442-465 per share
- Issue Size: Rs 900.00 crore
- Fresh Issue: Rs 700.00 crore
- Offer-for-Sale: Rs 200.00 crore by promoters
- Expected Listing Date: September 26, 2023
Allocation Structure
The IPO has been structured with the following reservation for various investor categories:
- 50% for Qualified Institutional Buyers (QIBs)
- 35% for Retail Individual Investors (RIIs)
- 15% for Non-Institutional Investors (NIIs)
Use of Proceeds
Saatvik Green Energy has outlined the following plans for utilizing the funds raised through the fresh issue:
| Purpose | Amount (in Rs crore) |
|---|---|
| Establishment of 4 GW solar PV module manufacturing facility in Odisha | 477.23 |
| Repayment of subsidiary debt | 166.44 |
| Repayment of parent company borrowing | 10.82 |
| General corporate purposes | Remaining funds |
The new manufacturing facility will be set up through the company's subsidiary, Saatvik Solar Industries.
Company Overview
Saatvik Green Energy is a prominent player in the solar energy sector, currently operating with a capacity of 3.8 GW. The company's services extend beyond manufacturing to include engineering, procurement, and construction services for solar projects.
Book Running Lead Managers
The IPO is being managed by a consortium of financial institutions:
- Dam Capital Advisors
- Ambit
- Motilal Oswal Investment Advisors
Investors and market watchers will be closely monitoring this IPO, given the growing interest in renewable energy sectors and the government's push for solar power adoption in India. The success of this IPO could provide insights into market sentiment towards the green energy sector and set the tone for future listings in this space.
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