Mumbai: Gensol Engineering Ltd, part of the Ahmedabad-based Gensol group of companies that provide solar advisory and EPC services, intends to raise roughly 20 crore from the primary market early next year. The public issue will be a mix of fresh equity and an offer for sale, founder Anmol Singh Jaggi told Mint.

The public issue is being advised by Pantomath Capital Advisors, a leading investment banker for small and medium enterprises listing on stock exchanges.

The Gensol group, founded by brothers Anmol Singh Jaggi and Puneet Singh Jaggi, is one of the leading consultants and system integrators for solar power plants with a portfolio of over 7900 MW of solar photovoltaic plants. Gensol provides concept to commissioning solar advisory, execution and operation services for solar projects in India and abroad. It is present in 18 Indian states and has ongoing projects in Africa, Middle East and South East Asia.

Gensol Engineering’s solar advisory services has a portfolio of over 20,000 MW, offering technical due diligence, policy and strategic advisory and project management. Gensol’s clients include the renewable energy projects of SunEdison, Adani, Greenko, Mytrah and Shapoorji Pallonji Infra. It also houses a smaller engineering-procurement-construction arm, which operates chiefly in the rooftop solar installation space and manages a portfolio of 95MW.

Gensol Engineering’s is on track to report revenue of 150 crore in FY19, Jaggi told Mint.

The Gensol Group is controlled by the Jaggi brothers, will involve an offer for sale for 6% of shares by Puneet Jaggi and a fresh equity issue for 26%.

Gensol’s public issue will come at a time when much larger renewable energy players such as ACME Solar and ReNew have had to shelve their public offer plans due to a lack of investor interest. Another renewable player Sembcorp Energy India received its IPO approval from Sebi this August.

The Indian solar power sector is facing headwinds in terms of a safeguard duty of 25% and a depreciating rupee, pushing up costs for local developers who import a bulk of the solar modules. The last major deal in the renewable energy sector was in April when ReNew Power announced its plan to buy Ostro Energy for 10,800 crore. Since then, appetite for large deals between developers and financial investors has weakened while bank funding has dried up as well.

For developers, this dearth of financing and trend towards consolidation could be a significant threat to India’s target of 175 gigawatts (GWs) of renewables capacity by 2022, industry experts say.

The Indian government has set an ambitious target of generating 100GW of solar power by 2022 from the existing installed capacity of 21.65 GW. Tariffs for electricity produced at utility-scale solar farms touched an all-time low of 2.44 per kilowatt-hour earlier this year, but have since risen from those levels.

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