Mumbai-based PMEA Solar Tech Solutions, a leading manufacturer in the solar tracking and mounting products sector in India, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO with a face value of Rs 10 per equity share is a mix of fresh issues of up to Rs 600 crore and an offer for sale of up to 11.23 million equity shares.
The offer for sale consists of the sale of equity shares up to 2.80 million equity shares by Samir Pravin Sanghavi, up to 2.80 million equity shares by Kapil Pravin Sanghavi, up to 2.80 million equity shares by Vishal Navinchandra Sanghavi, up to 2.80 million equity shares by Sandeep NavinchandraSanghavi.
The company, in consultation with the book-running lead managers, may consider a further issue of equity shares through a private placement, preferential offer, or any other method aggregating up to Rs 120 crores, as pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
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 proceeds from the fresh issue to the extent of ₹ 119.55 crore for funding capital expenditure for the setting up of certain manufacturing facilities undertaken through investment in the wholly owned Subsidiary, PMSS; Rs 120.45 crore for funding of capital expenditure requirements of the Company towards purchase of machinery/equipment; Rs 240 crore for repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company and investment in the wholly owned Subsidiaries, PMSS and Tapovan, for repayment or prepayment in full or in part, of all or a portion of certain outstanding borrowings availed by PMSS and Tapovan; and general corporate purposes.
PMEA Solar was established in 2006 by Chairperson, Samir Pravin Sanghavi. The Company specializes in Solar tracking mounting systems and equipment with products ranging from Solar Trackers, Solar Experts, and Solar Trackers. These include Module Mounting Assemblies and Rolled Products which are fundamental inputs into large-scale Solar Power Plants. It has an annual installed capacity of 16 gigawatts (“GW”) of module mounting assembly (“Module Mounting Assembly”) and 6 GW of rolled products (“Rolled Products”), as of March 31, 2024, according to a F&S report mentioned in the DRHP.
