Mumbai-based PMEA Solar Tech Solutions files DRHP with Sebi to raise funds via IPO

PMEA Solar Tech Solutions, a prominent Indian manufacturer of solar tracking and mounting products based in Mumbai, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise capital through an initial public offering (IPO).

The IPO, which has a face value of ₹10 per equity share, consists of a combination of fresh issues totaling up to ₹600 crore and an offer for sale of up to 11.23 million equity shares.

The offer for sale includes the sale of up to 2.80 million equity shares each by Samir Pravin Sanghavi, Kapil Pravin Sanghavi, Vishal Navinchandra Sanghavi, and Sandeep Navinchandra Sanghavi.

Proceeds from the fresh issue will be used for capital expenditure and debt repayment, including setting up a manufacturing facility in Mundra and purchasing machinery for plants in Nasik and Pune.

IIFL Securities Limited and ICICI Securities Limited have been appointed as the book running lead managers for the issue, while Link Intime India Private Limited will serve as the registrar for the offering.

As of June 2024, PMEA Solar had total borrowings of ₹314.06 crore. IIFL Securities and ICICI Securities have been appointed as the book-running lead managers for the issue.

About the company

PMEA Solar offers a wide range of products for utility-scale and ground-mounted solar projects, with an annual installed capacity of 16 GW for module mounting assemblies and 6 GW for rolled products as of March 31, 2024.

In addition to solar products, the company manufactures components for various industries such as switchgears, automotive OEMs, lighting solutions, furniture, and partition panels.

In FY24, PMEA Solar reported revenue of ₹1,500 crore, a significant increase of 87.3 per cent from the previous year's ₹800.7 crore. The company's net profit for the fiscal stood at ₹103.64 crore, up substantially from ₹27.44 crore the year prior.