Rays Power Infra Ltd, a Mumbai-based integrated solar power company, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an upcoming Initial Public Offering (IPO). The company is a major player in the Indian solar power sector, boasting an installed capacity of 1,207 megawatts peak (“MWp”) of solar power.
Here are the key details of the IPO:
### IPO Details:
– **Face Value:** ₹10 per share
– **Fresh Issue:** Equity shares worth up to ₹300 crore
– **Offer for Sale (OFS):** Up to 2.99 million shares by Promoter Selling Shareholders
– Ketan Mehta: Up to 1.4 million shares
– Pawan Kumar Sharma: Up to 7.78 lakh shares
– Sanjay Garudapally: Up to 7.78 lakh shares
– **Use of Proceeds:** ₹210 crore from the fresh issue for general corporate purposes and additional working capital requirements.
### Additional Equity Share Offer:
– In consultation with the book running lead managers, the company may consider another equity share offer post the IPO, known as a “Pre-IPO Placement.”
– This could involve a secondary sale by the promoter of up to 1.49 million equity shares or a combination of both.
– The private placement could amount to up to ₹45 crore, resulting in a reduction in the size of the new issue.
### Financial Details:
– **Book Running Lead Manager:** Anand Rathi Advisors Limited
– **Registrar of the Offer:** Bigshare Services Private Limited
– **Proposed Listing:** BSE and NSE
– **Offer Method:** Book Building Process
– **Allocation:**
– Not less than 15% to non-institutional bidders
– Not less than 35% to retail individual bidders
– Not more than 50% for qualified institutional buyers
### Company Background:
– Founded in 2011, Rays Power Infra Ltd has become a leading provider of solar engineering, procurement, and construction (EPC) services.
– Initially recognized as a key player in the solar park industry, the company has expanded to meet the growing demand for renewable energy solutions.
– As of October 31, 2023, the company’s order book includes ₹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 EPC Business, Power Sale, and O&M, totaling ₹1842.01 crore.
– For the three months ending June 30, 2023, the company reported revenue from operations of ₹85.92 crore and a profit after tax of ₹2.49 crore.
### IPO Process:
– The offer is conducted through the Book Building Process.
– Allocation is set with not less than 15% for non-institutional bidders, not less than 35% for retail individual bidders, and not more than 50% for qualified institutional buyers.
Rays Power Infra Ltd aims to capitalize on its robust presence in the solar energy sector and utilize the IPO proceeds to further its corporate objectives.
