Solar companies line up sale of shares amid brand push in India

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Both companies are seeking to raise approximately ??1,500 crore each, the above people said on condition of anonymity.

living mint | ThroughSwaraj Singh Dhanjal , Bombay

Vikram Solar Ltd and Waaree Energies Ltd have hired investment banks for their respective initial public offerings (IPOs), three people familiar with the matter said, as solar panel makers aim to grow their businesses through local manufacturing .

Both companies are seeking to raise approximately ??1,500 crore each, the above people said on condition of anonymity.

“Vikram Solar appointed JM Financial and started work on its IPO, while Waaree named Axis Capital and ICICI Securities for its IPO,” said one of the three people. “While both companies are keen to raise capital to invest in expanding their manufacturing capabilities, in Vikram Solar’s case a substantial portion of the proceeds will also be used to reduce its debt. Waaree is virtually debt free at the moment, ”he added.

An email sent to Vikram Solar and text messages sent to Waaree chairman Hitesh Doshi went unanswered until the time of publication.

“There is a strong will from the government to step up domestic manufacturing of solar panels, given the great capacities that India plans to build in the coming years and so far there has been a very heavy dependence on imports of solar panels, especially from China. . The government’s plan to impose high tariffs on imports of solar panels and cells is a big boost for domestic manufacturers, ”said the second person cited above.

India is running the world’s largest clean energy program to reach 175 GW of renewable capacity, including 100 GW of solar power by 2022. According to the Central Electricity Authority, by 2030, the country’s electricity needs countries would be 817 GW, of which more than half would be clean. energy; of this total, 280 GW would come from solar energy alone.

To meet the 280 GW target, approximately 25 GW of solar power capacity must be installed each year until 2030.

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