MUMBAI, Dec 2 (The CONNECT) -Mumbai-based Rays Power Infra Ltd, one of the leading integrated solar power companies in India with implementation of solar power projects of 1,207 mega-watts peak (MWp), has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator Sebi to raise funds through its initial public offering (IPO).

The IPO with a face value of Rs 10 comprises of fresh issue of equity shares up to Rs 300 crore and an offer for sale (OFS) of up to 2.99 million shares by promoter selling shareholders.

The offer for sale comprises of up to 1.4 million shares by Ketan Mehta, up to 7.78 lakh shares by Pawan Kumar Sharma, up to 7.78 lakh by Sanjay Garudapally.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

The Company in consultation with the book running lead managers, may consider undertaking a further offer of equity shares, including by way of a private placement of equity shares, aggregating up to Rs 45 crore or a secondary sale by the promoter selling shareholders of up to 1.49 million equity shares or a combination thereof, as (“Pre-IPO Placement”). If such placement is completed, the fresh issue size will be reduced.

The proceeds from the fresh issue, to the extent of Rs 210 crore, will be used for funding incremental working capital requirement of the Company and general corporate purpose.

Established in 2011, this company emerged as an early participant in the solar park sector and has since evolved into a reputable provider of comprehensive solar engineering, procurement, and construction (EPC) services. Its growth has been driven by the escalating demand for renewable energy solutions in the country.

Utilizing its adept understanding of state regulations concerning land acquisition and effective collaborations with state land authorities, the company has secured a track record of procuring over 5,700 acres of land for its clients across India.

The company adopts a consultative approach to address the specific solar energy needs and capabilities of its clients, allowing it to offer tailored solutions to meet their individual requirements.

Its primary operations revolve around the development of turnkey solar projects through activities like land aggregation, obtaining connectivity approvals, bay allocation, facilitating arrangements for captive use, enabling the execution of private power purchase agreements (PPAs) between buyers and sellers, and delivering EPC services (known as Turnkey Solar Services). Additionally, it engages in solar EPC services (Solar EPC Business) and provides solar park development services (Solar Park Business) independently, offering customers flexibility across the solar power value chain.

In addition to its solar power services, the company extends its EPC services to other infrastructure sectors such as water, transmission, distribution, and smart metering (Other EPC Business). For its Turnkey Solar Services and Solar EPC Business, it also offers operations and maintenance (O&M) services as required by its clients.

Under its Turnkey Solar Services, the company has successfully developed and activated 828.86 MWp of solar power projects in India, with ongoing development on projects totalling 198.50 MWp. In Fiscal 2020, through a step down subsidiary, it ventured into manufacturing and supplying electric two-wheeler vehicles (E2W), emphasizing innovation, sustainability, accessibility, and affordability.

The company has executed or is currently executing projects across 13 states in India, such as Maharashtra, Karnataka, Jammu & Kashmir, Telangana, Gujarat, Orissa, Himachal Pradesh, Rajasthan, Punjab, Uttarakhand, Uttar Pradesh, Tamil Nadu, and Arunachal Pradesh. It has also undertaken projects in Bangladesh and Vietnam.

As of October 31, 2023, the company’s order book consists of ₹ 292.04 crore from Turnkey Solar Services; ₹ 476.27 crore from Solar EPC Business; ₹ 454.80 crore from Solar Parks Business; and ₹ 618.90 crore from other business segments (including O&M, power sale, and Other EPC Business), aggregating to ₹ 1842.01 crore.

For fiscal 2022–23, the company’s revenue from operations has increased to Rs 776.58 crore against Rs 544.42 crore for fiscal 2021–22. Profit after tax increased to Rs 131.04 crore for Fiscal 2023 as compared to Rs 8.09 crore for Fiscal 2022.

For the three months ended June 30, 2023, revenue from operations stood at Rs 85.92 crore and profit after tax stood at Rs 2.49 crore.

Anand Rathi Advisors Limited and Unistone Capital Private Limited are the sole book-running lead manager, and Bigshare Services Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.