Saatvik Green Energy, a solar photovoltaic module manufacturer, saw its Initial Public Offering (IPO) enter the second day with a subscription rate of 0.59 times. The company aims to raise ₹900 crore through this public issue.

IPO Details

• Price Band: ₹442-465 per share
• IPO Structure:
  • Fresh issue: ₹700 crore
  • Offer-for-sale: ₹200 crore
• Anchor Investment: ₹269 crore raised from nine anchor investors at ₹465 per share

Subscription Status

The IPO has been subscribed 0.59 times as it entered its second day, indicating moderate investor interest so far.

Grey Market Premium

The grey market premium for Saatvik Green Energy stands at ₹18 per share, suggesting an estimated listing price of ₹483. This represents a potential 3.87% premium over the upper price band of ₹465.

Fund Utilization

The company plans to use the IPO proceeds for:

1. Funding a 4-gigawatt solar manufacturing facility through its subsidiary, Saatvik Solar Industries (₹477.23 crore)
2. Debt repayment:
   • ₹166.44 crore at the subsidiary level
   • ₹10.82 crore at the parent level
3. General corporate purposes

Company Overview

Saatvik Green Energy currently operates with a 1.8 GW capacity, manufacturing Mono PERC and N-TopCon solar modules. The expansion plans outlined in the IPO fund utilization suggest the company is positioning itself for growth in the solar energy sector.

Market Position

The solar energy sector in India has been gaining traction, with the government pushing for renewable energy adoption. Saatvik Green Energy's expansion plans align with the growing demand for solar modules in the country.

Investors and market watchers will be closely monitoring the subscription levels as the IPO progresses. The grey market premium, while positive, indicates cautious optimism among early traders.

Saatvik Green Energy Ltd., a prominent player in the solar energy sector, has successfully raised Rs 269 crore from anchor investors ahead of its initial public offering (IPO). The company is now poised to launch its IPO to raise up to Rs 900 crore, marking a significant milestone in its growth journey.

Anchor Investment Details

The company allotted 57.94 lakh shares to nine anchor investors at Rs 465 per share, which is at the upper end of the IPO price band. The allocation of shares among the top three anchor investors is as follows:

IPO Highlights

• Total IPO Size: Up to Rs 900 crore
• Price Band: Rs 442 - Rs 465 per share
• Fresh Issue: Rs 700 crore
• Offer for Sale: Rs 200 crore by existing shareholders

Fund Utilization Plans

Saatvik Green Energy has outlined clear plans for the utilization of the funds raised:

1. Subsidiary Investment: Rs 477.23 crore to be invested in Saatvik Solar Industries for setting up a 4-gigawatt solar PV module manufacturing facility in Gopalpur.
2. Debt Repayment: Rs 166.44 crore for debt repayment at the subsidiary level.
3. Parent Company Borrowings: Rs 10.82 crore to be used for parent company borrowings.

Company Profile

Saatvik Green Energy specializes in the manufacture of solar photovoltaic modules. The company currently boasts an operational capacity of 1.8 GW. In addition to manufacturing, Saatvik Green Energy provides a range of services including engineering, procurement, construction, operations, and maintenance for solar projects.

The upcoming IPO and the significant interest from anchor investors underscore the growing importance of the renewable energy sector in India. As the country pushes towards its clean energy goals, companies like Saatvik Green Energy are positioned to play a crucial role in the transition to sustainable power sources.

Investors and market watchers will be keenly observing the IPO performance, which could serve as an indicator of market sentiment towards the renewable energy sector in India.