Alpex Solar Plans IPO for Growth & Working Capital

New Delhi, Dec 5 (PTI) Alpex Solar on Tuesday announced plans to launch an Initial Public Offering (IPO) to fund its capacity expansion projects.

The company has filed a Draft Red Herring Prospectus (DRHP) with NSE Emerge, it said in a statement.

The company intends to use the proceeds to fund its ambitious capacity expansion plan, besides meeting working capital expenses, it said.

The company did not disclose the entire amount it aims to raise through the IPO route but said it intends to utilise Rs 19.55 crore of the net proceeds to upgrade and expand its capacity by 750 MW, Rs 12.94 crore to set up a new manufacturing unit for its solar module's aluminium frame, and another Rs 20.49 crore to meet its working capital requirements, besides general corporate expenses.

The issue size comprises a fresh issue of 64,80,000 equity shares with a face value of Rs 10 each.

Corporate Capital Ventures has been appointed the book running lead manager while Skyline Financial Services Pvt Ltd is the registrar to the issue.

Alpex Solar Ltd Chairman & Managing Director Ashwani Sehgal said, "To meet market demand for large-sized cells with Multi-Bus Bars (MBB) and the latest types of Mono Perc, Topcon, and Bifacial cells, we are planning to raise funds to expand our business operations by increasing our capacity from 450 MW to 1.2 GW in the existing manufacturing unit."

The aim is also to build a new plant dedicated to producing aluminium frames, eliminating our dependency on imports of the frames from other countries, he said.

Alpex Solar clocked a revenue of Rs 183.93 crore in FY23, up from Rs 156.06 crore in FY22. The company earned revenues of Rs 207.13 crore for the April-September period this fiscal.

The Greater Noida-based company manufactures and delivers solar panels in the B2B market and also serves as a contract manufacturer for several large companies, such as Luminous, Jakson, and Tata Power.