The IPO, with a face value of Rs 10, is a combination of fresh issue of shares worth Rs 600 crore and an offer for sale of up to 11.23 million equity shares.
According to the SFO, Samir Pravin Sanghavi, Kapil Pravin Sanghavi, Vishal Navinchandra Sanghavi and Sandeep Navinchandra Sanghavi will divest shares.
The Company, in consultation with the lead managers of the issue, may consider a fresh issue of equity shares by way of private placement, preferential offer or any other method for an aggregate of up to Rs 120 crore. If such placement is completed, the size of the fresh issue will be reduced.
The offering is conducted through a book-building process, with 50% reserved for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.
The proceeds from the fresh issue will be used to fund capital expenditure for setting up certain manufacturing facilities undertaken by way of investment in the wholly-owned subsidiary, PMSS, purchase of machinery, repayment of debt and general corporate purposes. PMEA Solar specialises in solar tracking assembly systems and equipment with products ranging from solar trackers to solar power experts. These include module mounting assemblies and laminated products, which are critical inputs for utility-scale solar power plants. It has an annual installed capacity of 16 gigawatts of module mounting assemblies and 6 GW of laminated products, as of March 2024, according to an F&S report cited in the DRHP.
PMEA Solar had an estimated 9% market share of the total domestic market for solar tracking and mounting products used in solar trackers.
Solar mounting and tracking products are used as structural components to install solar photovoltaic modules for solar energy projects and provide structural integrity to solar panels to optimize their exposure to sunlight.
The company’s operating income increased 87% year-on-year to Rs 1,500 crore in FY24, primarily due to higher operating income from product sales and other operating income. Restated profit after tax for FY24 tripled to Rs 103.64 crore.
IIFL Securities and ICICI Securities are the lead book-running managers and Link Intime India is the registrar for the offer.
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