PMEA Solar submits papers to Sebi for Rs 600 cr IPO; 11.2 mn shares on sale

PMEA Solar IPO: The funds raised through the fresh issue will be allocated towards capital expenditure and debt repayment

PMEA Solar Tech Solutions Ltd has submitted draft documents to the Securities and Exchange Board of India (Sebi) for a proposed initial public offering (IPO).

The IPO includes a fresh issue amounting to Rs 600 crore, alongside an offer for the sale of up to 11.24 million shares by existing promoters and shareholders, according to a MoneyControl report.

The funds raised through the fresh issue will be directed towards capital expenditure and debt repayment. The company intends to use the proceeds for establishing a fixed-tilt and tube mill manufacturing facility in Mundra, as well as for purchasing machinery and equipment for its plants in Nasik and Pune.

 

As of June 2024, the company’s total borrowings stood at Rs 314.06 crore. IIFL Securities and ICICI Securities have been appointed as the book-running lead managers for the offering.

With an annual installed capacity of 16 GW for module mounting structures and 6 GW for rolled products as of March 31, 2024, the company offers a diverse range of products for utility-scale and ground-mounted solar projects.

Diversified manufacturing expansion

In addition to solar products, PMEA Solar also manufactures components for switchgears, automotive OEMs, lighting solutions, furniture for large OEMs, and partition panels for the pharmaceutical and healthcare industries. The company operates 11 manufacturing facilities across Maharashtra and Gujarat.

For the financial year 2024, PMEA reported revenues of Rs 1,500 crore, reflecting an 87.3 per cent increase from Rs 800.7 crore in the previous year. Net profit for the period amounted to Rs 103.64 crore, a substantial rise from Rs 27.44 crore in the prior year.

NTPC Green Energy’s IPO
 

Besides PMEA Solar, there is buzz around another IPO in the renewable energy sector. State-run NTPC has shortlisted investment bankers for the proposed Rs 10,000-crore IPO of NTPC Green Energy. The funds raised will be used to finance NTPC Green’s ongoing and future projects, including solar energy, green hydrogen, and green ammonia. The company management had earlier said that they plan to list the renewable energy business by the end of the calendar year 2024.